© 2021 KSUT Public Radio
KSUT-web-headerv2880R1.png
NPR News and Music Discovery for the Four Corners
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Here's What's In The Democrats' $3.5 Trillion Budget Resolution

Senate Budget Committee Chair Bernie Sanders, I-Vt., and Senate Majority Leader Chuck Schumer of New York walk out of a budget resolution meeting at the Capitol on Monday.
Senate Budget Committee Chair Bernie Sanders, I-Vt., and Senate Majority Leader Chuck Schumer of New York walk out of a budget resolution meeting at the Capitol on Monday.

Updated August 11, 2021 at 10:18 AM ET

The Senate narrowly endorsed a $3.5 trillion budget resolution early Wednesday morning in a 50-49 party-line vote. The sweeping Democratic plan includes major investments in climate initiatives, the expansion of Medicare and the extension of the child tax credit.

Democrats are moving ahead with a budget process called reconciliation to pass the new spending without Republican support.

But there is still uncertainty within the Democratic caucus with Sens. Kyrsten Sinema of Arizona and Joe Manchin of West Virginia saying they oppose the size of the resolution. Meanwhile in the House, progressives are pushing for bold action, and have said they would not vote on the Senate-endorsed bipartisan infrastructure bill until the Senate finishes work on this separate spending package. House Speaker Nancy Pelosi, D-Calif., has said she will hold to that plan.

There are still weeks of work left on the spending plan, including having various committees actually write up the proposals that the resolution outlines. Senate Majority Leader Chuck Schumer, D-N.Y., said the goal is for committees to write up the legislation by Sept. 15.

Here are the highlights of the resolution:

What it would cost

The price tag is currently set at $3.5 trillion. The plan calls for the investments to be offset by a combination of new tax revenues, health care savings and long-term economic growth. It calls for raising money through IRS enforcement and proposes a new fee on carbon pollution. The plan prohibits tax increases on families making under $400,000 a year, small businesses and family farms.

What is included in the outline:

Education: $726 billion toward universal pre-k for 3 and 4-year-olds, child care for working families, tuition-free community college, investments in historically Black colleges and universities, and investments in primary care. (Health, Education, Labor and Pensions Committee)

Immigration: $107 billion toward lawful permanent status for qualified immigrants, border security measures. (Judiciary Committee)

Health care: At least $1 billion in deficit reduction, with investments in paid family and medical leave, ACA expansion extension, expanding Medicare to include dental, vision and hearing benefits along with lowering the eligibility age. Also included are investments to address health care provider shortages, the expansion of the child tax credit, long-term care for seniors and people with disabilities, clean energy, manufacturing, and transportation tax incentives, housing incentives.

The following offsets are listed for these initiatives: corporate and international tax reform, taxes from high-income individuals, IRS tax enforcement, health care savings and the carbon polluter import fee. (Finance Committee)

Agriculture: $135 billion to go toward agriculture conservation, drought and forestry programs to reduce carbon emissions and prevent wildfires, climate research, debt relief, child nutrition, and funding for a Civilian Climate Corps. The budget outline aims to meet Biden's goal of 80% clean electricity and 50% carbon emissions by 2030. (Agriculture Committee)

Housing: $332 billion for housing affordability, rental assistance, homeownership initiatives, revitalization projects, zoning, transit improvements and public housing investments. (Banking and Housing Committee)

Clean energy: $198 billion toward clean electricity payment program, financing for domestic manufacturing of clean energy and auto supply chain technologies, federal procurement of energy efficient materials, and climate research. (Energy and Natural Resources Committee)

Climate initiatives: $67 billion toward funding low-income solar technologies, environmental justice investments in clean water affordability and access, EPA climate and research programs, federal investments in energy efficient buildings and green materials, and investments in clean vehicles. (Environment and Public Works Committee)

Homeland security: $37 billion toward improving cybersecurity infrastructure, border management investments, federal investments in green materials procurement. (Homeland Security Committee)

Investments in Native communities: $20.5 billion toward Native health programs and facilities, education, housing, energy, and language programs. (Indian Affairs Committee)

Small businesses: $25 billion toward small business access to credit, investment and markets. (Small Business and Entrepreneurship Committee)

Veterans: $18 billion toward upgrading VA facilities. (Veterans Affairs Committee)

NPR's Kelsey Snell contributed to this report.

Copyright 2021 NPR. To see more, visit https://www.npr.org.

Related Stories