What's in President Joe Biden's Revised Spending Bill — And How Will the Plan Cover Its $1.85 Trillion Cost?

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joe biden
joe biden

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President Joe Biden's massive spending bill has been making headlines for weeks as Republicans denounce it, Democrats argue over what should and shouldn't be in it, and its price shrinks to appease those experiencing sticker shock or to remove elements that are unpopular among politician whose votes are needed to get the deal done.

The latest iteration of the Build Back Better Act was announced by the White House Thursday, with Biden addressing the nation — and his party — to sell the new package with its reduced cost of $1.85 trillion.

"After months of tough and thoughtful negotiations, I think we have — I know we have — a historic economic framework," the president said Thursday in an address from the East Room of the White House after meeting with Democratic lawmakers on Capitol Hill. "This framework includes historic investments in our nation, and in our people."

What the plan omits, however, are many Democratic priorities, such as free community college and paid family leave.

So, what's in the bill? And how does Biden plan to pay for it?

"No one got everything they wanted, including me," Biden, 78, said. "But that's what compromise is. That's consensus. And that's what I ran on."

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According to an announcement by the administration, which includes a breakdown of costs and offsets, "the plan is more than fully paid for by asking the wealthiest Americans and most profitable corporations to pay their fair share. It does not raise taxes on small business and anyone making less than $400,000 per year. It will also generate economic growth that will increase tax revenue and contribute to deficit reduction."

The plan does include a new tax on multi-millionaires and billionaires as well as a 15 percent minimum tax on large corporations and a one percent surcharge on corporate stock buybacks. It also includes an investment in IRS enforcement, to ensure everyone is paying their taxes.

joe biden
joe biden

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The White House is also expecting the implementation of the plan to grow the economy, allowing more revenue to come in to pay for the various parts of the wide-ranging plan.

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Here's what the White House is touting in its new package:

Child Care

Universal preschool for more than six million 3- and 4-year-olds.

Expanding care to 20 million children by limiting the costs to seven percent of income for qualifying families with parents who are working, seeking work, training or taking care of an illness.

An extension of the child tax credit for one year for more than 35 million American families who earn up to $150,000 per year.

Climate Change

Expanded tax credits for clean energy providers, manufacturers and transporters and for those who use clean passenger and commercial vehicles.

Investments and incentives to address extreme weather — including wildfires, droughts and hurricanes — as well as pollution and to fund a Civilian Climate Corps.

Incentives to support domestic supply chains with clean technologies like solar and battery power as well as to boost competitiveness of existing industries like steel.

Incentives for government agencies to purchase clean technologies and materials.

Health Care

Extend the expanded Affordable Care Act premium tax credits through 2025, allowing a predicted 3 million more people to get health insurance.

Allow Medicare to cover the cost of hearing for seniors.

Strengthening a Medicaid program to allow older and disabled Americans access to high-quality health care while they are getting care at home.

Improved wages for at-home health care workers.

Housing

Investment in new buildings as well as improvements and preservation of existing affordable rentals and single-family homes.

Rental and down-payment assistance.

Immigration

Reduction in the backlog of 9 million visas, according to The New York Times, and the ability to expedite green card applications.

Expand availability of legal representation for migrants.

Education

Reduce the cost of post-high school education to allow greater access by supporting higher-learning institutions that serve communities of color.

Investment in community college workforce programs, sector-based training and apprenticeships to encourage workforce development.

Other Investments

One-year extension of the Earned Income Tax Credit for 17 million workers who make low wages and don't have children.

"Other targeted investments including maternal health, community violence initiatives, Native communities, disadvantaged farmers, nutrition, pandemic preparedness, supply chain resilience, and other areas" are also included, the White House said.

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