Fiscal 2022 Budget Reconciliation – Passage

Passage of the fiscal 2022 budget reconciliation bill, as amended, that would provide approximately $2 trillion in investments and tax cuts to address climate change and child care, health care, education, housing and other social policies intended to support families. It would establish a child care and early learning entitlement program, providing approximately $100 billion for the program through fiscal 2024. It would provide $18 billion through fiscal 2024 for a free universal preschool program. It would extend through 2022 the expanded child tax credit provided by prior coronavirus relief law (PL 117-2) and provide $5 billion to administer the credit. It would establish a paid family and medical leave benefit for up to four weeks per year, beginning in 2024. It would require the Health and Human Services Department to negotiate a "maximum fair price" for insulin and select Medicare-eligible, brand-name drugs that do not have generic competition. It would require manufacturers to provide rebates for single-source drugs under Medicare Parts B and D for which prices increase faster than inflation. For Medicare Part D, it would cap annual out-of-pocket limit at $2,000 beginning in 2024. It would establish or extend expanded eligibility for certain tax credits toward Affordable Care Act marketplace insurance premiums through 2025. It would establish or expand a number of tax credits to incentivize actions by businesses and individuals to mitigate climate change, including to expand credits for renewable energy production and facilities, carbon capture facilities, use of alternative fuels and energy efficiency improvements at residential properties; and to establish individual credits for the purchase of electric vehicles. It would raise royalty rates and fees for oil and gas drilling leases and cancel or ban certain offshore leases. It would provide $29 billion to support the deployment of low- and zero-emission technologies, more than $20 billion for federal climate resiliency and environmental conservation activities and $9 billion for federal procurement of electric vehicles and related infrastructure. It would provide $65 billion for public housing improvements, $24 billion for rental assistance housing vouchers and $15 billion for down payment assistance and loan programs for first-generation homebuyers. It would provide $9.8 billion for local transit projects to support mobility and affordable housing access disadvantaged communities and $9 billion for lead remediation and water line replacement projects. It would forgive all debt owed by the National Flood Insurance Program's debt, for a total of $20.5 billion. It would provide such sums as necessary for the USDA to forgive farm loan debt for economically distressed farmers and ranchers. It would provide $6.6 billion to the Small Business Administration and Minority Business Development Agency to help underrepresented individuals with business development. It would provide $20 billion for Labor and Education department workforce development programs and $1.9 billion for Labor Department worker protection agencies. It would allow individuals who entered the United States prior to Jan. 1, 2011, to receive a grant of parole allowing them to remain temporarily in the country for a period of five years, but no later than Sept. 30, 2021. It would temporarily increase from $10,000 to $80,000 the annual cap on the deduction for state and local taxes for tax years 2021 through 2030. To offset costs, it would establish or modify various taxes on corporations and high-income individuals, including to establish a 15 percent alternative minimum tax for corporations with an annual income exceeding $1 billion; a one percent tax on stock buybacks by public companies; and an additional five percent tax on individual income over $10 million and further three percent tax on income over $25 million. It would provide $78.9 billion to improve IRS operations and tax enforcement.