Skip to content

Update: Budget Reconciliation Bill

Democrats are feverishly working on a $1.75 to $2 trillion budget reconciliation package to be passed before October 31st.  On Sunday morning, President Biden met with Senate Majority Leader Schumer and Senator Machin at the President’s Delaware home. The meeting emphasized the urgency to find an agreement before Biden leaves for the Glasgow global climate conference later this week.  Per Speaker Pelosi, “we will have something that will meet the president’s goals, I’m confident of that.” How to pay for the package is being worked out, but possible pay-fors could include more stringent tax enforcement by the IRS; a minimum tax to ensure companies around the world pay a minimum tax rate of 15%; an annual tax on the unrealized capital gains of America’s billionaires, a “stock buyback tax,” which would tax the amount corporations spend to buy their own stock; and a requirement that all domestic companies pay a minimum 15% tax rate. Negotiations are ongoing and key provisions are below:


  • An extension of the expanded Child Tax Credit (for one year instead of four)
  • Medicaid expansion in states that did not expand coverage under Obamacare (for three years instead of permanently)
  • Funding for public housing repairs and housing vouchers for low-income families (totaling $175 billion instead of $300 billion)
  • Funding to support home care services for elderly Americans and those with disabilities (totaling around $200 billion instead of $400 billion)
  • Two years of universal pre-K
  • Clean energy tax credits


  • Two years of tuition-free community college for all Americans (could be replaced by an increase in Pell grants)
  • Clean Electricity Performance Program, which would have incentivized utilities to use clean energy instead of coal and natural gas


  • Expanding Medicare to cover dental, hearing, and vision
  • Paid family and medical leave for all U.S. workers

NOTE: Once the above is agreed to, then Congress will pass the bipartisan infrastructure package.