$3.5 Billion Budget Plan Gets House Approval

The House passed a $3.5 trillion budget resolution this week, and set forth plans to vote on the bipartisan infrastructure bill by the end of September.  The budget resolution allows Democrats the ability to use the budget reconciliation process to pass the final bill – needing only a simple majority in the Senate.

The Budget Resolution reflects priorities in both the Build Back Better Agenda, and the American Families Plan. Provisions include expanding Medicare, family leave and child care, extending child tax credits, and investments in clean energy.  

New spending will likely be financed through tax increases on corporations, wealthy families and investors, and rolling back tax cuts implemented by the Tax Cuts and Jobs Act. The tax increases are directed at those earning more than $400k per year.

The budget resolution includes a set of instructions for House and Senate committees to write the reconciliation legislation. The final reconciliation package, once drafted, is expected to be considered in by early October.