On Friday, Sept. 10, House Ways and Means Committee Chair Richard Neal (D-MA) released the second tranche of the panel’s recommendations for budget reconciliation—the package through which Democrats aim to enact policies in President Joe Biden’s Build Back Better legislative agenda.
Last week, the committee approved five subtitles addressing Universal Paid Family and Medical Leave, Retirement, Child Care Access and Equity, Trade Adjustment Assistance and Elder Care (Pathways to Health Careers, Elder Justice, Skilled Nursing Facilities and Medicare Dental, Hearing, and Vision Coverage). The Brownstein Tax Policy Team has analyzed the paid leave and retirement provisions.
However, missing from last week’s text were the tax benefit provisions and revenue-raising measures through which House Democrats plan to pay for the spending and tax benefits included in the committee’s reconciliation recommendations. The legislative language released today includes revenue-raising provisions relating to health care, but the remaining revenue raisers are expected by Sunday evening. Although the budget resolution approved spending up to $3.5 trillion, the final package is unlikely to reach that mark, given pressure from moderate Democrats whom the party needs to secure passage.
Overview
The language would provide clean energy incentives; extend the Child Tax Credit, Earned Income Tax Credit and Child and Dependent Care Tax Credit; reinstate Build America Bonds to provide financing for state and local governments; reduce prescription drug costs and extend the expansion of premium tax credits to lower health insurance costs. The text released Friday consists of the following subtitles:
- Subtitle F: Infrastructure Financing
- Subtitle G: Green Energy
- Subtitle H: Social Safety Net
- Subtitle J: Prescription Drugs
Looking Ahead
The Ways and Means Committee is currently scheduled to consider the language released today at 9:00 a.m. ET on Tuesday, Sept. 14. Once the House Ways and Means Committee and the other House committees approve their respective budget recommendations, which House Democratic leaders have requested be completed by Sept. 15, the entire package will be compiled by the House Budget Committee and then sent to the House Rules Committee for the debate process for House floor consideration.
Click here for a full summary and analysis of the markup.