Democrats Propose $3.5 Trillion Budget Framework

While a bipartisan group of senators continued to negotiate the final details of a $1.2 trillion physical infrastructure spending bill last week, Senate Democrats unveiled a significantly larger budget framework that includes funding for so-called “family infrastructure” programs.

A full outline of what is included in the budget have not yet been released, but the framework reportedly would cost $3.5 trillion and would include new spending for Medicare, elder care, home care, child care, prekindergarten, paid family and medical leave, housing, education, and other safety-net programs.

The bill also is likely to include several climate priorities, including a clean electricity standard, clean energy and vehicle tax credits, and a civilian climate corps.

Moderate senators like Kyrsten Sinema (D-Ariz.) and Joe Manchin (D-W.Va.) have expressed concern about adding to the national debt and are pushing for the legislation to be at least partially paid for. Sen. Manchin did tell reporters last week that he is “open” to supporting the $3.5 trillion framework, but indicated that he still wants to understand how it will be financed.

Sen. Jon Tester (D-Mont.), another centrist member, said he will vote on a procedural motion that would allow debate on the measure to move forward, but the senator also strongly criticized the outline.

Among the mechanism Democrats are likely to use to pay for the bill are a tax on imports from countries that do not have aggressive policies to reduce greenhouse gas emissions and tax increases on business and high-earning individuals.

Individuals who oppose these tax can click here to use the U.S. Chamber of Commerce’s one-click advocacy tool to urge the Biden administration and lawmakers in Congress to do the right thing for U.S. businesses and not increase levies on small and large companies.

As a reminder, these “family infrastructure” measures are part of President Joe Biden’s agenda and the budget outline could be pushed through Congress without Republican support by using the reconciliation process that sidesteps the 60 votes needed to advance legislation in the U.S. Senate. Every Senate Democrat would have to vote for the bill, however, which means all eyes are on Sens. Manchin, Sinema, and Tester to see how they vote.

While, as noted above, there is still no legislative text written outlining the contours of this agreement, Senate Majority Leader Chuck Schumer (D-N.Y.) has said he wants the “hard decisions” on this legislation wrapped up by Wednesday, July 21.