President Joe Biden met with the Senate Democratic Group on Wednesday to endorse support for its far-reaching infrastructure and business investment goals, less than a day after lawmakers announced they had reached an agreement on a budget resolution of several Made trillions of dollars.
That budget deal, which would spend $ 3.5 trillion over the next decade, is added to the roughly $ 600 billion in new spending included in a bipartisan infrastructure plan, Democrats said.
A senior Democratic adviser told CNBC later on Wednesday that key items in the budget for the 2022 financial year include:
Extending the temporary expansion of the tax credit from the $ 1.9 trillion Covid relief plan that Biden signed in March. These include the Child Tax Credit, Income Tax Credit, and Child and Dependent Tax Credit. Funding a range of climate protection programs and initiatives aiming to achieve 80% clean electricity and an overall economic reduction in CO2 emissions of 50% -Emissions by 2030. Investments in childcare and family programs, including universal Pre-K, paid families- and sick leave, food assistance and affordable housing. A range of labor and business investments to support small businesses, improvements in research and development and manufacturing, and supply chain efforts.
Senate leaders say the budget is fully paid – a feature that could affect moderate Democrats concerned about government spending and rising debt levels, especially after the trillions spent during the Covid pandemic .
Leading lawmakers also said the budget would expand Medicare coverage for dental, visual and hearing services that progressives like Senator Bernie Sanders have been pushing for.
Compensation for the enormous topline price will come from three main categories: tax reform, health savings and long-term economic growth.
The adviser said the budget will also ban tax increases for family businesses, small businesses, and families making less than $ 400,000 a year.
Senate Majority Leader Chuck Schumer, DN.Y., said Tuesday evening that Biden would appear for caucus lunch on Wednesday with the door closed at the Capitol to “guide us to this wonderful plan.”
“We’ll make it,” Biden told reporters at the Capitol before entering the lunchtime meeting.
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White House press secretary Jen Psaki tweeted Wednesday morning that the president would “continue to advocate the duel-track approach to the economy by investing in infrastructure, protecting our climate and supporting the next generation of workers and families better to rebuild ”.
She noted in a follow-up that she had misspelled the word “dual”.
Democratic leaders hope to get versions of the resolution through the House and Senate before lawmakers leave Washington for the August recess.
However, they admitted on Tuesday evening that their work for them was canceled because the budget only provides a rough overview of the expenses that would have to be specified in subsequent laws.
“We know we have a long way to go,” said Schumer.
“I have no illusions how challenging this will be,” said Senator Mark Warner, D-Va., Vice chairman of the caucus.
The resolution, if passed, would pave the way for Democrats to pass a later spending bill in the Senate through what is known as the budget balancing process. That means that the Democrats would only need a simple majority in the Senate – which is 50:50 50:50 with the Republicans – and not the 60 votes that the GOP could demand through the filibuster rules.
If all 50 Democrats in the Senate support such a law, they could pass it without Republican support, as Democratic Vice President Kamala Harris could cast the casting vote.
Senate Democratic leaders are working to please both the moderates in the caucus who have expressed their discomfort about funding the mammoth spending plans and the progressives who have called for much more money to be spent.
Senator Bernie Sanders, on whom Schumer charged charges of including expanded Medicare coverage in the budgetary decision, and other progressives had originally pushed for a budget of $ 6 trillion. Biden had suggested less than $ 5 trillion.
Moderate Senator Joe Manchin, DW.V., expressed a very different opinion on Tuesday, telling reporters, “I think everything should be paid for. We have spent enough free money. “
In a statement Wednesday morning, Manchin said he was looking forward to reviewing the Senate Budget Committee’s agreement.
“I’m also very interested in how this proposal is paid for and how we can use it to remain globally competitive,” he said. “I will reserve the right to make any final judgment until I have had the opportunity to thoroughly evaluate the proposal.”
The budget will reportedly be in line with Biden’s pledge not to impose taxes on anyone earning less than $ 400,000 a year.
Sanders said Tuesday evening the legislation shows that “wealthy and large corporations will begin to pay their fair share of taxes so we can protect working families in this country.”
Another progressive, Senator Elizabeth Warren, D-Mass., Told NBC News that she hoped Biden would assure the caucus that he “will put all his energy into making this happen”.
Warren also said she wanted to hear from the President how her efforts will affect key policy areas “because of all of these things – childcare, climate, home and community care, child tax deduction, free community college – all of that.” it’s about how we build a future for the future. “
The Senator added that she “will always push for the number to be increased, but for now it’s my job to say, ‘This is a lot of money'” “.