House Passes $1.5 Trillion Spending Bill — How it Affects You

Wednesday, lawmakers passed H.R. 2471, the Consolidated Appropriations Act, 2022 — which is over 2,700 pages long — providing $1.5 trillion to fund the federal government through the end of September. It also allocates over $13 billion to aid Ukraine. Here's what's in the bill, how it affects you, and what may happen next.

What the $1.5 Trillion Bill Contains

The house passed H.R. 2471 in two separate votes — 361 to 69 on the portions containing defense spending and 260 to 171 on the portions that do not include defense spending. $15.6 billion in new Covid-19 aid (which would repurpose unused relief funds for fund vaccines, treatments, and research) was cut from the bill, the House hopes to pass a separate Covid bill next week.

Here are some of the expenditures in the bill:

• $24.6 billion in financial assistance for students. During his State of the Union address on March 1st, President Biden called for higher education reform, including a $2K Pell Grant expansion. This bill increases the maximum Pell Grant by $400 — which is still the biggest increase in over 10 years — and provides billions of dollars for federal student aid programs.
• $13.6 billion in aid to Ukraine. Of the most time-sensitive aspects of this bill is the $14 billion that is dedicated to the humanitarian crisis in Ukraine. The bill allocates $4 billion for humanitarian aid, $3.5 billion for new military equipment, and $3 billion to be made available for U.S. military personnel to respond to the crisis in Ukraine.
  
  Of the $4 billion allocated for humanitarian assistance, $2.65 billion is allocated to the United States Agency for International Development (USAID). These funds are to be used for "the provision of emergency food and shelter, and for assistance for other vulnerable populations and communities."
  
  Additionally, $1.4 billion is set aside for the State Department "to assist refugees from Ukraine and for additional support for other vulnerable populations and communities."
• $4 billion for rural development. The 2021 Infrastructure bill provided $65 billion to improve rural infrastructure — such as expanding broadband internet into rural areas of the country. This bill provides an additional $4 billion for rural development.
  
  Of the $4 billion, an additional $550 million will be used to continue expanding broadband internet access in rural areas. The White House estimates that 30 million Americans live in areas that do not have adequate broadband infrastructure. The funds will also be used to provide drinking water and sanitary waste removal systems.
• 2.7% pay increase for active military. If you are in the military or know someone who is, a 2.7% pay increase could be right around the corner. The bill is trying to offset some of the effects of inflation for our armed service members by providing a raise in wages.
• $675 million increase for the IRS. The IRS has made several headlines as of late due to staff shortages, lack of technological capability, and the millions of 2020 tax returns that are still unprocessed. This bill increases the IRS's budget by $675 million — which is the biggest budget increase in the last 20 years.

What Was Cut From the $1.5 Trillion Bill

The most notable provision of the bill that was initially reduced — and then cut entirely — was a provision for an additional $30 billion in Covid-19 relief that would increase vaccine supplies, fund research, and provide free Covid-19 testing.

About a month ago, the White House initially sought to include $30 billion in the bill. The White House warned that America would soon be out of funding to fight the pandemic. The $30 billion was reduced to $22 billion when the Biden administration submitted their request to Congress.

Wednesday, as members of the House of Representatives debated over H.R. 2471, the Covid-19 relief pool was reduced to $15.6 billion, and then cut from the bill altogether so the bill could pass the House and be sent to the Senate. Speaker Pelosi is working on a separate Covid-19 relief bill that may hit the House floor as early as next week.

The request for additional funds for pandemic relief was met with skepticism from both Democrats and Republicans in the House. Speaker Pelosi said the decision was "heartbreaking." According to ABC News, the White House stated that this could have "severe consequences" for the American people.

How This Bill Could Affect You

The is a major bill that keeps the federal government funded through the end of the fiscal year, which is September 30th. Should this bill not pass the Senate quickly, it could have severe consequences, as the government will run out of funds on Tuesday March 15th. Members of Congress are confident that the bill will pass.

Aside from a government shutdown — if one were to occur — this bill will have a direct impact on millions of Americans. Active military will receive a pay increase, rural Americans will have better water, sewage, and internet infrastructure coming their way, university and community college students will receive a higher grant, and many more benefits are attached to this bill.

An increase in the IRS's budget will hopefully lead to an ability to process the return backlog faster — especially as the 2021 tax season is already underway.

Many are concerned that the lack of a Covid-19 relief provision will hinder the government's ability to fight the pandemic (by producing more vaccines, funding more research, and continuing to offer free testing) and whatever challenges the pandemic may still bring. Others are not convinced that more spending is needed at this time, but Pelosi intends to bring the matter up in the House next week.

Final Thoughts

The bill has passed the House and is on its way to the Senate. There is hope that the Senate will pass it quickly since the bill contains aid to Ukraine — a provision that received support from Democrats and Republicans alike. The government is funded through Tuesday — but if deliberations in the Senate take longer, government agencies could begin shutting down as early as Saturday.

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