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| introduceddate = September 27, 2021
| introduceddate = September 27, 2021
| committees = [[House Budget Committee|House Budget]]
| committees = [[House Budget Committee|House Budget]]
| passedbody1 = House
| passeddate1 = November 19, 2021
| passedvote1 = 220-213
}}{{Use mdy dates|date=October 2021}}
}}{{Use mdy dates|date=October 2021}}


Revision as of 14:49, 19 November 2021

Build Back Better Act
Great Seal of the United States
Long titleTo provide for reconciliation pursuant to title II of S. Con. Res. 14.
Enacted bythe 117th United States Congress
Legislative history
  • Introduced in the House of Representatives as H.R. 5376 by John Yarmuth (D‑KY) on September 27, 2021
  • Committee consideration by House Budget
  • Passed the House on November 19, 2021 (220-213)

The Build Back Better Act is a bill introduced in the 117th Congress to fulfill aspects of President Joe Biden's Build Back Better Plan. It was spun off from the American Jobs Plan, alongside the Infrastructure Investment and Jobs Act, as a $3.5 trillion reconciliation package that included provisions related to climate change, family aid, and expansions to Medicare.[1][2] Following negotiations, the price was lowered to $1.75 trillion.[3]

Background

Before the act was spun off from the American Jobs Plan (AJP), on April 5, Senator Joe Manchin proposed raising the corporate tax rate from 21% to only 25%, instead of the 28% Biden originally called for.[4] On May 25, Republican senators Pat Toomey and Roger Wicker indicated a lack of support within their caucus to change aspects of the 2017 tax act, and suggested repurposing unspent COVID-19 relief funds.[5][6] On May 28, Biden released details of a $6 trillion budget proposal for the fiscal year of 2022, which would raise taxes on corporations and millionaires to pay for both the AJP and the American Families Plan over 15 years.[7][8] On June 3, White House press secretary Jen Psaki announced a tweaked AJP proposal that would not increase taxes on corporations, in exchange for closing loopholes and requiring them to pay at least 15%.[9] On June 5, finance ministers from Group of Seven announced that they would support a global 15% corporate tax minimum.[10]

On May 28, Senate Parliamentarian Elizabeth MacDonough indicated that the current rules dictate that the reconciliation process should not be used more than once during a fiscal year.[11][a] On June 3, Senator Manchin advocated against using reconciliation, despite its support from other Democrats.[13][5] On June 16, Schumer met with the Democratic members of the Senate Budget Committee to discuss the option of passing a budget resolution using reconciliation.[14][b] In late June, Manchin said he was open to adjusting the 2017 tax bill[16] and stated his support for a $2 trillion reconciliation bill.[17] On June 24, a bipartisan group met with the president and reached a $1.2 trillion bipartisan deal focusing on physical infrastructure (e.g. roads, bridges, railways, water, sewage, broadband, and electric vehicles). Biden stipulated that a separate "human infrastructure" bill (e.g. child care, home care, and climate change) must also pass, whether through bipartisanship or reconciliation,[18] but later walked back this position.[19][c] House Speaker Nancy Pelosi similarly stated that the House would not vote on the physical infrastructure bill until the larger bill passes in the Senate,[22] despite the fact that reconciliation overrides much of the obstructive power of the filibuster.[22][23]

Legislative history

On July 13, the Democrats of the Senate Budget Committee reached a reconciliation budget limit agreement of $3.5 trillion in spending over the next decade.[1][2] The next day, the Senate released a framework, which included most of the provisions of the American Families Plan.[24] On August 1, Manchin restated his opinion that the bipartisan and reconciliation bills should remain separate, citing concerns about the latter including how it would be paid for and uncertainty regarding whether it would pass.[25] Representative Alexandria Ocasio-Cortez responded by claiming that enough House Democratics would vote to block the passage of the bipartisan bill to force the approval of the incomplete reconciliation bill, citing the possibility of "a lot of corporate lobbyist giveaways" being hidden in the former.[26]

On August 10, the Senate voted along party lines to begin debating a $3.5 trillion budget resolution.[27] Early the next morning, the resolution passed along party lines.[28] On August, a group of several moderate Democratic representatives urged Pelosi to hold a separate House vote on the bipartisan bill,[29] writing, "We will not consider voting for a budget resolution until the bipartisan [bill] passes the House and is signed into law."[30] While reaffirming that the House would not take up the bipartisan bill before the reconciliation bill passes in the Senate,[23] Pelosi announced that she had asked the House Rules Committee to consider the possibility of a rule to advance both packages, though this did not immediately satisfy the group of moderates.[31]

On September 2, Manchin indicated that he only supported between $1–1.5 trillion of the reconciliation package, and called for a "strategic pause".[32] This prompted Biden to state, "I think we can work something out,"[33] and Schumer to say, "We're moving full speed ahead."[34] On September 12, Manchin confirmed that he would not yet support the bill, stating, "We don't have the need to rush into this".[35] Biden subsequently held meetings with Senators Manchin and Sinema to discuss their objections to the package.[36][37] Both House Majority Whip James Clyburn and House Budget Committee chairman John Yarmuth suggested that the bill could be reduced from $3.5 trillion and still meet the president's goals.[38][39] On September 23, Schumer announced that the White House and both houses of Congress had reached an agreement concerning a bill payment framework, which he described as a "menu of options".[40] The House Budget Committee advanced the bill in a markup session on September 25; it was next expected be reviewed by the House Rules Committee.[41]

A procedural vote on a House rule concerning passing both bills, as well as the John Lewis Voting Rights Act, passed along party lines on August 24.[42] On September 7, the administration proposed a stopgap spending bill to avoid a government shutdown at the beginning of October, which would have prolonged infrastructure negotiations.[43] An initial stopgap bill, which included a provision to raise the debt ceiling, was passed by the House along party lines on September 21,[44] but was subsequently blocked along party lines in the Senate.[45] On September 30, a stopgap bill was passed to keep the government open until December 3.[46]

A prospective deadline for the House to advance both the reconciliation and bipartisan bill passed on October 1.[47] On that date, Democratic leaders floated a $2.1 trillion compromise, but Manchin refused to budge above $1.5 trillion.[48] The next day, Pelosi set a new deadline of October 31,[49] having cited Biden's November trip to the 2021 United Nations Climate Change Conference as a hopeful deadline.[50] On October 3, Congressional Progressive Caucus chairwoman Pramila Jayapal rejected Manchin's suggested spending limit,[51] as well as his insistence on including the Hyde Amendment in an expansion to Medicaid.[52][53] Biden subsequently reaffirmed a target of about $2 trillion,[54] which Manchin signaled being open to.[55] As of October 16, Democratic lawmakers were in the process of reworking the bill to target the lower cost.[56] Pelosi stated on October 25 that over 90% of its contents had been agreed to.[57] The next day, legislation for a 15% corporate minimum tax was unveiled;[58] Senator Kyrsten Sinema, a key moderate, stated her support.[59] On October 28, the White House released a framework for the bill.[3]

On November 1, Manchin stated that he may not support the bill due to it allegedly costing more than claimed in the framework and accused House Democrats of "holding [the bipartisan bill] hostage".[60][61] Senate Budget Committee chairman Bernie Sanders argued that the bipartisan bill, which Manchin helped negotiate, ran up to a $250 billion deficit, while the reconciliation bill was fully paid for.[62] At midnight on November 5, the House Rules Committee approved a rule, which if adopted, would kick off debate on the act.[63] Several moderate Democrats requested a score from the Congressional Budget Office before lending their support to the bill.[64][65] The score was released on November 18, finding that the bill would increase the budget deficit by $367 billion over ten years.[66] The same day, the House voted along party lines to advance the bill to a final vote,[67] which may occur as soon as November 19.[68] Without any Republican support, it can pass the House with a maximum of three dissenting Democrats.[69] Senate Democrats hope to pass the act by Thanksgiving.[70][71]

Provisions

$3.5 trillion version

The original version of the bill may have increased the state and local income tax deduction limit (which was set at $10,000 in the Tax Cuts and Jobs Act of 2017).[72] It was also expected to include the Protecting the Right to Organize Act labor bill,[73] set a clean electricity standard called the Clean Energy Performance Program,[74] and reform immigration[75][76] to the extent allowed by reconciliation rules.[77]

On September 9, 2021, Analysis Group published a report commissioned by Evergreen Action and the Natural Resources Defense Council. It found that the plan's Clean Electricity Payment Program was expected to create 7.7 million American jobs over the next decade, generate $907 billion in economic growth, and provide state and local governments over $154 billion in tax revenue.[78]

The House Natural Resources Committee's $25.6 billion portion of the bill included a repeal of a 2017 law requiring the government to lease land at the Arctic National Wildlife Refuge for drilling, and would have banned offshore drilling in both the Atlantic and Pacific oceans, as well as the eastern Gulf of Mexico. A CCC jobs program would have been created. Money was to have been raised via an increase on royalties paid by fossil fuel companies to drill on federal lands and waters, as well as the establishment of a royalty payment for hard-rock mining.[79][80]

The House Science Committee's $45.51 billion portion included over $4 billion for NASA (although not for human space exploration).[81]

Democrats of the House Transportation Committee proposed $10 billion for transit support, $10 billion for high-speed rail, $4 billion to lower carbon emissions and $4 billion to address the division of communities by highways. Additionally, the bill allotted $2.5 billion to deal with port congestion and $1 billion to reduce aviation-caused carbon emissions.[82]

The bill was expected to generate $1.5 trillion in revenue from corporations and the wealthy.[33][83] In September, it was reported that House Democrats hoped to increase the corporate tax rate to 26.5% (between Biden's original 28% and Senator Manchin's suggested 25%)[4] as part of the reconciliation bill; the next month, it was reported that the corporate tax rate was unlikely to be increased in the bill,[84] apparently largely because Senator Sinema opposed the measure.[85]

Revised version

The revised version of the bill is expected to cost around $1.75 trillion.[86] The White House's legislative framework includes:[3]

  • $555 billion for clean energy and climate change provisions
  • $400 billion for childcare and preschools
  • $200 billion for child tax and earned income tax credits
  • $150 billion for home care
  • $150 billion for housing
  • $130 billion for Affordable Care Act credits
  • $90 billion for equity and other investments
  • $40 billion for higher education and workforce
  • $35 billion to expand Medicare to hearing services

A provision for 4 weeks of paid family and medical leave is included in a package drafted by the House Ways and Means Committee, but awaits Senate approval.[87]

The pending payment methods are:[3]

  • $400 billion from IRS reform, including the enforcement of tax payments from taxpayers making over $400,000[88]
  • $350 billion by imposing a 15% minimum tax on foreign corporate profits
  • $325 billion via a 15% corporate minimum tax (applying to corporations making over $1 billion for three consecutive years)[59]
  • $250 billion by closing a Medicare tax loophole benefiting the wealthy
  • $230 billion from an adjusted gross income surcharge on the 0.02% most wealthy, applying a 5% rate for those who make $10 million, and an additional 3% surtax above $25 million
  • $170 billion by reducing business losses of the wealthy
  • $145 billion by repealing the 2017 tax act's rebate rule regarding prescription drugs
  • $125 billion via a 1% surcharge on corporate stock buybacks

Reactions

A Data for Progress poll conducted in late June 2021 for Invest in America found that 62% of likely voters support passing both the AJP and American Families Plan together using reconciliation. Among Democrats, 86% said they support the use of reconciliation, as did 59% of Independents and 36% of Republicans.[89]

On July 18, 2021, Republican Senator Lindsey Graham said on Fox News that he would "use everything lawfully in [his] toolbox to prevent rapid inflation," including leaving town to prevent the bill from being voted on, citing a recent Democrat walkout from the Texas House of Representatives. All 50 Republican senators would have to be absent to obstruct a Senate vote, and the Senate's sergeant at arms can enforce senatorial attendance with the threat of arrest.[90]

According to an early August Harvard CAPS-Harris Poll survey, voters were split 51%–49%, disfavoring the bill.[91]

Shortly after the October 1 deadline to pass the reconciliation package passed, protestors separately confronted Senators Manchin and Sinema.[92][93]

Notes

  1. ^ A majority in the Senate Budget Committee would be needed to change this.[12]
  2. ^ Democrats were reportedly considering such a bill in the neighborhood of $6 trillion.[15]
  3. ^ White House officials stated on July 7 that legislative text was nearing completion.[20] On July 14, the Senate Energy and Natural Resources Committee advanced an energy bill expected to be included in the bipartisan package.[21]

References

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