Democrats Debate Budget Plan

Every year, the federal government puts together a budget–a plan for the way that federal dollars will be spent. A country’s budget reflects its priorities. Budget bills can often be a challenge to pass because different legislators all have different priorities. President Biden has created a $3.5 trillion budget package, which he now needs Congress to pass. But even members of the president’s party are worried about the plan’s high price tag. Here, Election Central takes a closer look at the budget bill and how legislators are responding to it.

What’s In the Budget?

There are actually two budget plans to consider. The first is a bipartisan $1.2 trillion budget package, including $600 billion in spending on “hard” infrastructure projects such as roads, bridges, and internet. The second budget being debated is $3.5 trillion. It will focus on funding for:

• childcare and universal pre-K;
• lower prescription prices;
• climate initiatives (such as a clean energy standard, clean energy and vehicle tax incentives, and the establishment of a Civilian Climate Corps);
• extending the child tax credit expansion that started under the pandemic;
• providing students with two free years of community college;
• investments in minority-serving institutions;
• affordable housing and nutrition assistance initiatives;
• expanding Medicare and the Affordable Care Act (ACA); and
• investing in housing and small businesses.

Where Will the Money Come From?

Despite the $3.5 trillion price tag, Democrats have promised that they will not raise taxes on the middle class to fund these projects. Families making under $400,000 per year would see no increase at all. Small businesses and family farms would also see no change. But those families making over $400,000 per year will pay a larger share of taxes than they have in the past. Over time, supporters say, the funding will come from savings on health care, changes to the tax code, and general economic growth.

Congressional Republicans are concerned that continued high amounts of government spending now will lead to higher and higher inflation later. Meanwhile, moderate Democrats are also worried about the high price tag. At the same time, some progressive members of the Democratic Party–wanted the budget to cover an even larger price tag of services and government programs. Because of the even split of membership in the Senate, both moderate and progressive Democrats must be united for the budget to pass.

What Happens Next?

President Biden has already begun reaching out to Congressional Democrats to gain their support for the budget. Meanwhile, the separate $1.2 trillion “hard infrastructure” budget bill is currently being drafted. The Senate plans to vote on both bills before its August recess. President Biden and Senator Sanders have expressed confidence that the budget will pass.

What Do You Think? Imagine that you are a congressperson in charge of helping to draft a new budget bill. What five issues would you prioritize for spending? Why?