Biden’s Build Back Better plan is on ice. This is what it means for you
A majority of the legislation would be paid for with further tax increases on corporations and the wealthy. But even with these sources of revenue, the Congressional Budget Office estimated it would add $ 367 billion to the deficit over 10 years.
Senate Majority Leader Chuck Schumer on Monday pledged that the chamber “will vote on a revised version of the Build Back Better construction project passed by the House and we will continue to vote on it until we do something about it.” “.
What this package ultimately looks like remains to be seen.
Here are the proposed safety net programs that are now in danger of being discontinued:
Enhanced child tax credit: The current version of Build Back Better would have maintained the improved monthly child tax credit payments until 2022.
But Manchin is concerned that the improved payments could be extended again because they would be too popular to be scrapped. Making the provision permanent would cost $ 1.6 trillion over 10 years, the CBO estimated.
Eligible parents have received up to $ 300 for each child up to age 6 and $ 250 for each age 6 to 17 on a monthly basis since July, which is half of the enhanced credit. Families will receive the other half when they file their 2021 tax returns next season.
In total, the extended credit offers up to $ 3,600 for each younger child and up to $ 3,000 for each older child.
Improvement was key to Democrats’ pledge to reduce child poverty. The November payment saved 3.8 million children out of poverty and reduced the child poverty rate by nearly 30%, according to the Center on Poverty and Social Policy at Columbia University.
Medicaid Coverage Gap: The current version of Build Back Better would have paved the way for health insurance for more than 2 million low-income Americans in the 12 states that have not extended Medicaid. This would have enabled them to receive Affordable Care Act grants to purchase Obamacare policies with no monthly premiums until 2025.
It would have cost around $ 57 billion, the CBO estimates.
And the bill would have required state Medicaid programs to provide 12 months of eligibility to women after childbirth. States now generally offer 60 days of coverage.
Childcare: The legislation would limit child care costs for families with children under 6 to no more than 7% of income for those earning up to 250% of the state’s median income, expanding access to about 20 million children. The funding would have lasted six years. The provision, along with the universal pre-K measure, would have cost around $ 381 billion, according to the CBO.
The number of uninsured Americans is said to have fallen by 3.4 million, mainly due to the extension of subsidies and the Medicaid provision, the CBO estimates.
The legislation also reportedly added a year to the US bailout’s provision that allows people receiving unemployment benefits to qualify for federal grants that reduce their monthly premiums to as little as $ 0. It was only in effect in 2021.
Hearing benefits of Medicare: Seniors and Americans with disabilities are said to have received hearing coverage through Medicare, starting in 2023, as part of the current version of Build Back Better.
Only 30% of people over 70 who could benefit from hearing aids have ever used them, the White House said. This measure would have cost 36.7 billion dollars, according to the CBO.
Income tax credit: The expanded working income tax credit has reportedly been extended until 2022, helping 17 million low-wage workers without children, under the current version of Build Back Better.
The boost, which is also part of the US bailout, is only in place for this year. It almost triples the maximum credit that childless workers can receive, extends eligibility to more people, lowers the minimum age, and removes the upper age limit. This provision costs around $ 13 billion, according to the CBO.
Home care: Build Back Better called for continuous improvement in Medicaid coverage for home care services for the elderly and people with disabilities, with the goal of reducing the more than 800,000 people on the Medicaid waiting lists. State.
It also aimed to improve the quality of nursing jobs. The measure would have cost nearly 146 billion dollars, according to the CBO.
Drug price reduction efforts: Build Back Better contained multiple efforts to lower the price of prescription drugs, including allowing Medicare to negotiate prices for the first time.
The legislation would also have imposed penalties if drug companies increased their prices faster than inflation. And he would have redesigned Medicare Part D drug plans so that seniors and people with disabilities did not have to pay more than $ 2,000 for drugs bought at the pharmacy.
The bill would also have capped what Americans pay for insulin at $ 35 per month.
In total, these measures would have saved about $ 297 billion, including about $ 79 billion by allowing Medicare to negotiate drug prices, according to the CBO.
The United States currently has no federal paid benefits for family or sick leave, making it an outlier among developed countries.
It has reportedly invested in historically black colleges and universities and other institutions that serve underrepresented communities, as well as increased funding for workforce development.
These arrangements would have cost a total of 39.8 billion dollars, according to the estimate of the CBO.
Affordable housing: The legislation provided for an investment of $ 25 billion in the construction, rehabilitation or purchase of affordable housing for low-income people and for the creation and preservation of affordable rental housing. It would have provided $ 65 billion to address the backlog of public housing capital needs and boost rent assistance to hundreds of thousands of families.
The measure would also have invested in down payment assistance and community-led redevelopment projects in disadvantaged neighborhoods. And it has reportedly provided $ 24 billion to fund housing vouchers and support services.
The effort would have cost around $ 148.1 billion, according to the CBO.