The Biden administration released a spending plan intended as a companion for the bipartisan $1 trillion infrastructure bill, according to The Wall Street Journal (subscription).
The basics: The $1.85 trillion plan is down from a proposed $3.5 trillion. The Biden administration is hoping that the framework will allow both parties to move forward on the already Senate-approved infrastructure bill, which was halted pending an agreement on the social spending plan.
What’s in: The pared-down social plan still includes a range of significant provisions, including:
- A one-year extension of the expanded child tax credit through 2022;
- A provision making the child tax credit permanently available to low-income families who don’t pay income taxes;
- Funding for six years of universal prekindergarten and child-care subsidies;
- $150 billion to support long-term care for elderly and disabled Americans;
- $555 billion for climate-related provisions; and
- $320 billion in 10-year expanded tax credits for utility-scale and residential renewable energy, transmission, electric vehicles and clean energy manufacturing.
What’s out: The framework leaves out a series of provisions that didn’t make the final cut, including:
- A national paid-leave program;
- A plan to allow Medicare to negotiate drug prescription prices; and
- A permanent extension of expanded Affordable Care Act subsidies.
Next steps: The framework also outlined the tax plan that would be used to pay for the added spending, focusing primarily on high-income households and corporations. Next, the House and Senate will continue haggling over the order of the votes on the bipartisan infrastructure plan and the social spending plan as the Biden administration seeks to pass both together.