How Could the $3.5 Trillion Budget Affect You?

On Wednesday morning, the Senate put forth their blueprint for a $3.5 trillion budget for 2022. While it is still in the planning phases, the budget framework outlines what some members of the Senate wish to achieve. The purpose of this $3.5 trillion budget is to ensure "every major program proposed by President Biden...receive robust funding" and would be the most significant change to social welfare since the Great Society of the 1960s. Here is how the budget could affect you if it passes as it's drafted.

What Is In the $3.5 Trillion Budget?

The budget framework lays out the potential funding that various committees could receive. It summarizes the budget as follows: $1.8 trillion for working families, the elderly, and the environment, a tax cut for Americans making less than $400,000 a year, hundreds of billions in savings on prescription drugs, and ensuring the wealthy and large corporations pay their share of taxes.

Below is an outline of the budget framework, the committees that will receive the money, and some of the items the budget could fund. You can view the full framework and all of the suggested budgetary items on the budget framework.

• $726 billion to the Committee on Health, Education, Labor, and Pensions. These funds will go towards universal Pre-K for 3 and 4 year-olds, child care for working families, tuition-free community college, increasing the Pell grant amount, and school infrastructure.
• $332 billion for the Committee on Banking, Housing, and Urban affairs for the purpose of providing down payment assistance, rental assistance, and other homeowner initiatives.
• $198 billion for the Committee on Energy and Natural Resources. This would fund a clean electricity payment program, consumer rebates to weatherize homes, and climate research.
• $135 billion for the Committee on Agriculture, Nutrition, and Forestry. These funds would provide for items such as agriculture conservation and forestry programs to prevent wildfires.
• $107 billion for the Committee on the Judiciary for lawful permanent status  for qualified immigrants.
• $83 billion for the Committee on Commerce, Science, and Technology for investments in transportation, technology, and more.
• $67 billion for the Committee on Environment and Public Works for investments in clean vehicles, energy efficient buildings, green materials, and EPA climate research.
• $37 billion for the Committee on Homeland Security and Governmental Affairs for electrifying the federal vehicle fleet (such as the USPS) and improving cybersecurity infrastructure.
• $25 billion for the Committee on Small Business and Entrepreneurship to create access to credit, investment, and markets for small businesses.
• $20.5 billion to the Committee on Indian Affairs for Native health programs and educational programs.
• $18 billion for the Committee on Veterans Affairs to upgrade VA facilities.
• $1 billion in deficit reduction for the Committee on Finance for paid family leave and medical leave, long-term care for seniors and persons with disabilities, housing incentives, and expanding Medicare to include dental, vision, and hearing benefits.

What Will Fund the $3.5 Trillion Budget?

The framework claims that the $3.5 trillion amount is the "level of new investment" but does not reflect the total cost to the American people, because it also includes "substantial offsets." These offsets, as stated in the framework, include long-term economic growth, health care savings, and new tax revenue. In other words, lawmakers who are proponents of this budget expect the measure to create savings and economic growth that will offset some of the budgetary cost, along with increased taxes on certain tax brackets.

Will the $3.5 Trillion Budget Pass?

At the moment, it is difficult to say. Numerous Senators have expressed their worry about the amount of this proposed budget. Joe Manchin, Democratic Senator from West Virginia, expressed his concern over the budget saying, "I have serious concerns about the grave consequences facing West Virginians and every American family if Congress decides to spend another $3.5 trillion."

Others remain skeptical over the amount as well. Senate Minority Leader Mitch McConnell said that it was "full of reckless taxing and spending." Senator Lindsey Graham said that if the budget passes, it will result in a "dramatic increase of gas prices and heating prices."

Inflation remains one of the concerns over spending an additional $3.5 trillion on top of the $1 trillion infrastructure bill and the $5.3 trillion already spent fighting the coronavirus. The price of consumer goods rose by 5.4% in July 2021 over last July, marking the largest increase since 2008.

Meanwhile, the House will face challenges in passing this budget as well. Nine Representatives sent a letter to Speaker Pelosi stating, "We will not consider voting for a budget resolution until the bipartisan Infrastructure Investment and Jobs Act passes the House and is signed into law." This sits right at odds with Speaker Pelosi's earlier comments that the Infrastructure bill will not be voted on in the house until the budget is passed.

How Would The Budget Affect you?

If the budget passes as is, it will create numerous benefits for millions of Americans.

Free preschool, free community college, increased paid family leave, improved care for the elderly, paid child care for working families, and increased capital access for small businesses are just a few of the benefits.

That being said, many argue that there will be unintended financial consequences if it passes that could end up hurting Americans. The budget faces a challenging road ahead before it passes both houses of Congress.

Conclusion: $3.5 Trillion Budget Has a Long Road Before It Passes

The budget is in the planning phase. Unlike the infrastructure bill, original votes for the budget fell along party lines. With certain democrats, such as Senator Manchin, opposing the bill as is, there is no certainty that the bill will pass the Senate. House Representatives have differing priorities. Some want to approve the Infrastructure bill before the budget and others want the budget approved before the Infrastructure bill. At present, the budget does not seem like it will pass anytime soon, but should it, millions of Americans would be looking at a windfall of benefits.

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