Thread: President Joe Biden

Biden rallies Senate Democrats after they reach $3.5 trillion budget deal

A senior Democratic aide told CNBC later Wednesday that the major items in the budget framework for fiscal year 2022 include:

Extending the temporary tax credit expansions from the $1.9 trillion Covid relief plan that Biden signed in March. That includes the child tax credit, the earned income tax credit and the child and dependent care tax credit.

Funding an array of climate change programs and initiatives, with the goal of achieving 80% clean electricity and a 50% economy-wide reduction in carbon emissions by 2030.

Investments in child care and family programs, including universal Pre-K, paid family and medical leave, nutrition assistance and affordable housing.

A slew of workforce and business investments aimed at supporting small businesses, research and development improvements, and manufacturing and supply chain efforts.

The Senate leaders say the budget plan is fully paid for — a feature that could help sway moderate Democrats concerned about government spending and rising debt levels, especially in the wake of the trillions spent during the Covid pandemic.

The leading lawmakers also said that the budget would expand Medicare coverage for dental, vision and hearing benefits, which progressives such as Sen. Bernie Sanders have pushed for.

Offsets to the whopping topline price tag will come from three major categories: Tax reform, health savings and long-term economic growth.

The aide said the budget will also prohibit tax increases on family farms, small businesses and families making less than $400,000 annually.