Senate Democrats revealed key details of their $3.5 trillion budget framework, a starting point for a Democrat-only bill for "human" infrastructure.
Why it matters: The release of the FY2022 budget deal formally kicks off the process for getting a pair of infrastructure bills across the finish line.
- Democratic leaders need to hold all 50 of their senators together to pass this budget framework, which they plan to usher through the budget reconciliation process.
Details:
Tax credits:
- Extend the expansions of the child tax credit under the American Rescue Plan, the earned income tax credit, and separate child and dependent care tax credits.
- A Senate Democratic aide said the duration of each credit’s enactment will be determined by congressional scoring and committee input.
Climate change:
- Create 80% clean electricity and 50% economy-wide carbon emissions by 2030.
- More funding for the clean energy standard, clean energy and vehicle tax incentives, civilian climate corps, "climate-smart agriculture," wildfire prevention, federal procurement of clean technologies, weatherization and electrification of buildings and the clean energy accelerator.
- The resolution will also propose new methane reduction and polluter import fees "to increase our emissions reductions."
Key provisions in the American Families Plan
- The resolution will include funding for universal pre-K for 3- and 4-year-old children, child care, community college, HBCUs, Pell Grants, paid family and medical leave, nutrition assistance and affordable housing.
Economic inequality
- Increased funding for housing investments, innovation and research & development upgrades, small business support, American manufacturing and supply chain funding, investment in workers and communities, green cards, pro-worker incentives and penalties.
Pay fors
The plans to offset the package are broken into three separate buckets:
Tax reform
- Increasing corporate and international taxes, as well as taxes on the wealthy.
- Increased funding for the IRS to crack down on tax enforcement.
Health savings
- Through new language on prescription drugs and by repealing the Trump rebate.
Long-term economic growth
- The framework would prohibit tax increases on families making under $400,000 per year, small businesses and family farms.
The latest: During Senate Democrats' caucus lunch on Wednesday, Majority Leader Chuck Schumer (D-N.Y.), Budget Committee Chair Bernie Sanders (I-Vt.) and Sen. Mark Warner (D-Va.) briefed their colleagues on these top-line details.
- President Biden also attended the lunch in an attempt to keep Democrats unified in their support for both infrastructure bills.
What to watch: The Senate will continue to work on the massive budget reconciliation package while it takes up a $1.2 trillion bipartisan infrastructure, with a goal of passing both by August recess.
