House Republicans’ are proposing appropriations bills would raise a host of costs for families, hurt students, seniors, and rural communities, slash support for law enforcement, and undermine our economy—while Congressional Republicans fight separately for multi-millionaires and big corporations to get massive tax cuts. Basically going back on the deal that was negotiated just months ago, with Biden saved the nation from its first ever credit default, they are now using extortion, threatening a government shutdown, if they don’t get these cuts, along with policy changes to undermine women’s rights. This fact sheet from the White House details the impacts on individual states.–Karen Rubin/news-photos-features.com
Earlier this year, the President and Congressional leaders reached a bipartisan budget agreement that averted a first-ever default and protected our historic economic progress. The President, House Democrats, Senate Democrats, and Senate Republicans all stand by this promise. Unfortunately, Speaker McCarthy and House Republicans are ignoring the bipartisan budget agreement they passed and instead advancing extreme, partisan appropriations bills that break their public promise and gut key investments in the American people.
House Republicans claim these cuts are about fiscal responsibility—but they aren’t. Not only would their bills add at least $100 billion to deficits over 10 years by making it easier for the wealthy and big corporations to cheat on their taxes, but House Republicans are separately pushing corporate tax giveaways that would cost over $500 billion if made permanent—including at least $30 billion in retroactive tax breaks for investments companies made last year. These retroactive tax cuts alone would erase the savings from their deep cuts to education, health, and labor programs.1
Today, the Office of Management and Budget released 51 fact sheets highlighting the devastating impacts of these extreme cuts on states and the District of Columbia. Below are some of the most harmful elements of House Republicans’ appropriations bills that they will begin to consider this week.
The cuts in the House appropriations bills would:
Slash Funding for Schools with Low-Income Students: House Republicans’ 80 percent cut to Title I funding would impact 26 million students in schools that teach low-income students by forcing a reduction of up to 226,000 teachers, aides or other key staff.
Eliminate Tens of Thousands of Preschool Slots: House Republicans’ cut to Head Start would mean as many as 82,000 children would lose access to high-quality preschool—undermining their education, leaving fewer children ready to enter kindergarten ready to learn, and making it more difficult for parents to join the workforce.
Slash Funding for Law Enforcement: The proposed cut to the FBI would eliminate up to 1,850 personnel, including up to 673 agents, and the Bureau of Alcohol, Tobacco, Firearms and Explosives would be forced to eliminate approximately 400 positions, including more than 200 agents. The House bill also cuts funding for U.S. Attorneys by roughly 12 percent, which would eliminate approximately 1,400 positions.
Raise Housing Costs for Tens of Thousands: The proposed cuts would raise housing costs by eliminating funding for Housing Choice Vouchers for 20,000 households, including approximately 6,000 households headed by seniors. In addition, a nearly 70 percent cut to the HOME Investment Partnerships Program would result in 20,000 fewer affordable homes being constructed, rehabbed, or purchased in communities across the country.
Slash Critical Job Training and Workforce Development Programs: The proposal would result in half a million fewer people receiving job training and employment services. These harmful cuts would deprive businesses of the skilled workforce they need to thrive, and would cut off workers’ pathways to good jobs.
Undermine Critical Health Research: House Republicans’ cuts would undermine critical research efforts to find treatments and cures for diseases like cancer and Alzheimer’s by cutting $3.8 billion for the National Institutes of Health. They would also eliminate funding for the Agency for Healthcare Research and Quality, which would end the Long COVID research at the agency and delay other priority health services research.
In addition to demanding these draconian cuts, House Republicans are also fighting to rescind vital funding that is helping make our tax code fairer, rebuilding America’s infrastructure, lowering costs for families, and tackling the climate crisis. Their proposals would:
Increase Risks of Lead Exposure: The proposal would rescind over $564 million in funding for programs that mitigate housing-related risks of lead poisoning and other illnesses and hazards to lower income families, especially children, resulting in 55,000 fewer homes safe of hazards and adversely impacting approximately 78,000 children.
Protect Wealthy Tax Cheats: While House Republicans separately lay the groundwork for more than $3 trillion in tax cuts skewed to the wealthy and big corporations, they are also fighting to make it easier for wealthy tax cheats to avoid paying what they owe—proposing to rescind $67 billion dollars in funding for the IRS enacted in the Inflation Reduction Act, which would increase the deficit by more than $100 billion.
Increase Energy Costs for Rural Americans: Rescinding $2 billion in funding provided by the Inflation Reduction Act for programs at USDA would undermine programs that help agricultural producers and rural small businesses convert to renewable energy systems, and that help rural Americans to build clean, affordable, and reliable energy by working with approximately 900 electric cooperatives in 47 States.
Shortchange Home Electrification Projects: Rescinding $4.5 billion in funding provided by the Inflation Reduction Act for the High-Efficiency Electric Home Rebate Program would impact at least 250,000 home electrification and appliance upgrade projects in low- and medium-income homes across all States, territories, and tribes.
Undermine Clean Technology Investments and Pollution Reduction: Rescinding $20 billion in funding provided by the Inflation Reduction Act for programs at EPA would take away funds designed to help communities access grant opportunities to reduce pollution and mobilize private capital into clean technology projects, especially in low-income and disadvantaged communities. These programs will spur investment in clean technology projects and expand economic opportunities in communities, helping to cut harmful pollution and protect people’s health while tackling the climate crisis.
Slash Support for Teachers: Rescinding $1.7 billion—or 77 percent—in the Supporting Effective Instruction State Grants (Title II) program would severely undermine the program’s ability to improve the effectiveness of teachers in the classroom.
A deal is a deal. The President and the Speaker already made a bipartisan budget agreement—one that would result in $1 trillion of deficit reduction over the next decade. Every party to that agreement except House Republicans—House Democrats, Senate Democrats, Senate Republicans, and President Biden—are honoring their word. It is a balanced deal that protects critical investments while ensuring fiscal responsibility. We urge House Republicans to follow the law they helped enact and the Senate’s bipartisan approach to funding the government according to the deal.
The White House released a fact sheet detailing President Biden’s proposed budget, aimed at investing in America, lowering costs for working class and middle class families, cutting taxes for working families, and protecting and strengthening Medicare and Social Security. It demonstrates the president’s long-held values that seeks to achieve stable, sustainable economy that grows from the bottom up and the middle out.
President Biden has long believed that we need to grow the economy from the bottom up and middle out, not the top down. Over the past two years, in the face of significant challenges, that economic strategy has produced historic progress for the American people.
Under the President’s leadership, the economy has added more than 12 million jobs—more jobs in two years than any president has created in a four-year term—including 800,000 manufacturing jobs. The unemployment rate has fallen to 3.4 percent, the lowest in 54 years. The Black and Hispanic unemployment rates are near record lows. The past two years were the best two years for new small business applications on record. The President has taken action to lower costs and give families more breathing room, including cutting prescription drug costs, health insurance premiums, and energy bills, while driving the uninsured rate to historic lows. And the President’s plan is rebuilding America’s infrastructure, making the economy more competitive, investing in American innovation and industries that will define the future, and fueling a manufacturing boom that is strengthening parts of the country that have long been left behind while creating good jobs for workers, including those without college degrees.
The President has done all of this while delivering on his commitment to fiscal responsibility. While the previous Administration passed a nearly $2 trillion unpaid-for tax cut with benefits skewed to the wealthy and big corporations while dramatically increasing the deficit, President Biden cut the deficit by more than $1.7 trillion during his first two years in office—the largest decline in American history. And the reforms he signed into law to take on Big Pharma, lower prescription drug costs, and make the wealthy and large corporations pay their fair share will reduce the deficit by hundreds of billions of dollars more over the coming decade.
The President’s Budget details a blueprint to build on this progress, deliver on the agenda he laid out in his State of the Union, and finish the job: continuing to grow the economy from the bottom up and middle out by investing in America, lowering costs for families, protecting and strengthening Medicare and Social Security, and reducing the deficit by nearly $3 trillion over the next decade by making the wealthy and big corporations pay their fair share and cutting wasteful spending on Big Pharma, Big Oil, and other special interests. No one earning less than $400,000 per year will pay a penny in new taxes.
Congressional Republicans have taken a very different approach. While they have consistently said that reducing the deficit is a top priority, Congressional Republicans have already proposed policies that would add an additional $3 trillion to the debt over the next decade—all while raising costs for working families and handing out tax giveaways to the wealthy and big corporations. As the President has made clear, they owe the American people a detailed accounting of exactly what they plan to cut in order to cover the costs of their proposals, while also achieving the kinds of fiscal targets that they claim to support. Until they produce a plan, we’re left to rely on a wide array of Republican budgets, statements, and proposals—past and present—which provide clear and consistent evidence that many critical programs the American people count on will be on the chopping block.
Lowering Costs and Giving Families More Breathing Room
As our economy transitions from a historically strong recovery to stable and steady growth, the President has remained laser-focused on continuing to lower costs for families and giving them more breathing room, without giving up the historic economic gains we’ve made. While more work remains, there are clear signs that the President’s strategy is working. Annual inflation is lower than it was seven months ago, gas prices are down $1.60 per gallon since their peak last summer, and unemployment remains at its lowest level in 54 years, while take home pay has gone up. And the Biden-Harris Administration has taken historic action to lower the costs of health care, clean energy, and prescription drugs, eliminate junk fees that make it harder for families to make ends meet, promote greater competition to lower costs, and address pandemic-driven supply chain bottlenecks. While some Congressional Republicans have proposed repealing the Inflation Reduction Act and taken other actions that would raise costs for working families, the President’s Budget takes a very different approach—proposing a package of policies to continue lowering everyday costs for the American people.
Cuts Taxes for Families with Children and American Workers. The President is calling for the restoration of the full Child Tax Credit enacted in the American Rescue Plan, which cut child poverty in half in 2021, to the lowest level in history. The Budget would expand the credit from $2,000 per child to $3,000 per child for children six years old and above, and to $3,600 per child for children under six. The Budget would also permanently reform the credit to make it fully refundable. The President also calls on the Congress to make the Earned Income Tax Credit expansion for childless workers permanent, which would help pull low-paid workers out of poverty.
Lowers Health Care Costs. The President believes that health care should be a right, not a privilege. With enrollment in affordable health coverage at an all-time high, the Budget builds on the remarkable success of the Affordable Care Act (ACA), by making permanent the average $800 per year premium cuts through expanded premium tax credits that the Inflation Reduction Act extended. It also provides Medicaid-like coverage to individuals in States that have not adopted Medicaid expansion under the ACA, paired with financial incentives to ensure States maintain their existing expansions.
Reduces Prescription Drug Costs for All Americans. The Budget builds upon the Inflation Reduction Act to continue lowering the cost of prescription drugs. For Medicare, this includes further strengthening the newly established negotiation power by extending it to more drugs and bringing drugs into negotiation sooner after they launch. The Budget also proposes to limit Medicare Part D cost-sharing for high-value generic drugs used for certain chronic conditions like hypertension and high cholesterol to no more than $2. For Medicaid, the Budget includes proposals to ensure Medicaid and CHIP programs are prudent purchasers of prescription drugs, authorizing HHS to negotiate supplemental drug rebates on behalf of interested States in order to pool purchasing power. For the commercial market, the Budget includes proposals to curb inflation in prescription drug prices and cap the prices of insulin products at $35 for a monthly prescription.
Expands Access to Quality, Affordable Health Care. The Budget invests $150 billion over 10 years to improve and expand Medicaid home and community-based services, such as personal care services, which would allow seniors and individuals with disabilities to remain in their homes and stay active in their communities as well as improve the quality of jobs for home care workers. And because community health centers—which provide comprehensive services regardless of ability to pay—serve one in three people living in poverty and one in five rural residents, the Budget puts the Health Center Program on a path to double its size and expand its reach. To bolster the health care workforce, the Budget provides a total of $966 million in 2024 to expand the National Health Service Corps, which provides loan repayment and scholarships to health care professionals in exchange for practicing in underserved areas, and a total of $350 million to expand programs that train and support the nursing workforce.
Expands Access to Affordable, High-Quality Early Child Care and Learning. Too many families across America cannot access high-quality, affordable child care—preventing parents from working and holding back our entire economy. The President’s Budget enables states to increase child care options for more than 16 million young children and lowers costs so that parents can afford to send their children to high-quality child care. The Budget also funds a Federal-State partnership that provides high-quality, universal, free preschool to support healthy child development and ensure children enter kindergarten ready to succeed.
Lowers Housing Costs by Increasing Affordable Housing Supply and Expanding Access to Homeownership and Affordable Rent. The President believes that everyone deserves a safe and affordable place to live. To address the critical shortage of affordable housing in communities throughout the country that has exacerbated inflation, the Budget includes $59 billion in mandatory funding and tax incentives aimed at increasing the affordable housing supply, including for extremely low-income households. The Budget also includes $10 billion in mandatory funding to incentivize State, local, and regional jurisdictions to make progress in removing barriers to affordable housing developments, such as restrictive zoning. By expanding the supply of housing, the Budget would help prevent the kind of rapid increases in rental and homeownership costs we have seen in recent years. The Budget also includes $10 billion in mandatory funding for a new First-Generation Down Payment Assistance program to help address racial and ethnic homeownership and wealth gaps—making homeownership more attainable for Americans who have been locked out of the generational wealth building that can come with owning a home. And the Budget expands access to affordable rent through the Housing Choice Voucher (HCV) program to well over 200,000 additional households. In addition to assisting all current voucher recipients and providing new vouchers for tens of thousands of additional families, the Budget includes mandatory funding to support two populations that are particularly vulnerable to homelessness—guaranteed assistance for all 20,000 youth who age out of foster care annually and an incremental expansion to cover the 450,000 extremely low-income (ELI) veteran families nationwide.
Improves College Affordability and Expands Free Community College. The Budget proposes to increase the discretionary maximum Pell Grant by $500—helping more than 6.8 million students pay for college, building on successful bipartisan efforts to increase the maximum Pell Grant award by $900 over the past two years, and laying out a path to double the award by 2029. The Budget also invests mandatory and discretionary funding to expand free community college, and provides mandatory funding for two years of subsidized tuition for students from families earning less than $125,000 enrolled in a participating four-year Historically Black College or University (HBCU), Tribally-Controlled College or University (TCCU), or Minority-Serving Institution (MSI).
Lowers Home Energy and Water Costs. The Budget provides $4.1 billion for the Low Income Home Energy Assistance Program (LIHEAP), building on the $13 billion provided in the Inflation Reduction Act to reduce energy bills for families, expand clean energy, transform rural power production, and create thousands of good-paying jobs for people across rural America. Since the Low Income Household Water Assistance Program (LIHWAP) expires at the end of 2023, the Budget proposes to expand LIHEAP funding and allow States the option to use a portion of their LIHEAP funds to provide water bill assistance to low-income households.
Increases Food Security. As called for in the National Strategy on Hunger, Nutrition and Health, the Budget provides over $15 billion to allow more States and schools to leverage participation in the Community Eligibility Program and provide healthy and free school meals to an additional 9 million children. The Budget also includes $6.3 billion to support the 6.5 million individuals expected to participate in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).
Protecting and Strengthening Medicare and Social Security
The President has always believed that Medicare and Social Security are a promise—a rock-solid guarantee generations of Americans have counted on to be able to retire with dignity and security. The President will reject any efforts to cut the Medicare or Social Security benefits that seniors and people with disabilities have earned and paid into their entire working lives. The Budget honors that ironclad commitment—not only by rejecting benefit cuts, but by embracing reforms and investments that will protect and strengthen both programs. The President is committed to working with Congress to ensure Medicare and Social Security remain strong for their beneficiaries, now and in the future.
Protects and Strengthens Medicare. The Budget strengthens Medicare by extending the solvency of the Medicare Trust Fund by at least 25 years, without cutting any benefits or raising costs for beneficiaries. The Budget includes key reforms to the tax code to ensure high-income individuals pay their fair share into the Medicare HI trust fund. It also directs the revenue from the Net Investment Income Tax into the HI trust fund as was originally intended. Finally, the Budget directs the savings from the Budget’s proposed Medicare drug reforms into the HI trust fund.
Protects the Social Security Benefits that Americans Have Earned. The Administration is committed to protecting and strengthening Social Security and opposes any attempt to cut Social Security benefits for current or future recipients. The Administration looks forward to working with the Congress to responsibly strengthen Social Security by ensuring that high-income individuals pay their fair share. The Budget also invests in staff, information technology, and other improvements at the Social Security Administration, providing an increase of $1.4 billion, a 10 percent increase, over the 2023 enacted level. These funds would improve customer service at Social Security Administration field offices, State disability determination services, and teleservice centers for retirees, individuals with disabilities, and their families.
Growing the Economy from the Bottom up and Middle Out by Investing in America and Its People
The Budget proposes smart, targeted investments to grow the economy from the bottom up and middle out, not the top down, by investing in America and its people—investing in the foundations of our country’s economic strength; confronting the climate crisis while creating clean energy jobs; and advancing equity, dignity, and opportunity and strengthening our democracy.
Investing in the Foundations of Our Economic Strength
Invests in American Manufacturing. The Budget provides $375 million for the National Institutes of Standards and Technology’s (NIST) Industrial Technology Services to support the progress of NIST’s existing manufacturing institute, fund a new institute to be launched in 2023, and promote domestic production of institute-developed technologies. The Budget also includes $277 million for the Manufacturing Extension Partnership, a public-private partnership that offers advisory services to small and medium enterprises.
Makes Historic Investments in Innovation and Cutting-Edge Research. The Budget provides almost $21 billion in discretionary spending for CHIPS and Science Act-authorized activities. This funding includes $1.2 billion for the CHIPS and Science Act-authorized Directorate for Technology, Innovation, and Partnerships to help accelerate and translate scientific research into innovations, industries, and jobs, as well as $300 million for NSF’s Regional Innovation Engines program to galvanize use-inspired research, technology translation, and workforce development. Within DOE’s Office of Science, the Budget also supports cutting-edge research in artificial intelligence, quantum information sciences, microelectronics, and isotope production at the national laboratories and universities. In addition, the Budget requests $4 billion in new mandatory funding for the Regional Technology and Innovation Hub Program at the Economic Development Administration. And the Budget provides $210 billion for Federal research and development, an historic level of investment in American science, technology and innovation.
Provides National, Comprehensive Paid Family and Medical Leave and Calls for Paid Sick Leave for All Workers. Workers power our economy—and when they thrive, our economy thrives. The Budget proposes to establish a national, comprehensive paid family and medical leave program, providing up to 12 weeks of leave to allow eligible workers to take time off to care and bond with a new child; care for a seriously ill loved one; heal from their own serious illness; address circumstances arising from a loved one’s military deployment; or find safety from domestic violence, sexual assault, or stalking. The President also calls on Congress to require employers to provide seven job-protected paid sick days each year to all workers.
Expands Workforce Training that Provides Pathways to Good Jobs. The Budget invests in evidence-based training models to ensure all workers—including women, workers of color, and workers in rural areas—have the skills they need for the good jobs being created by the President’s historic legislative accomplishments. The Budget invests $335 million in Registered Apprenticeship, an earn-and-learn model, to provide debt-free pathways to careers in construction, clean energy, semiconductor manufacturing, and other in-demand industries. The Budget also provides $200 million for the new Sectoral Employment through Career Training for Occupational Readiness (SECTOR) program, which will support development and expansion of public-private partnerships to equitably deliver high-quality training in growing industries, and invests $100 million to help community colleges partner with employers and the public workforce system to design and deliver effective training models in communities across the Nation.
Invests in High-Poverty Schools. The Budget provides $20.5 billion for Title I, a $2.2 billion increase above the 2023 enacted level, delivering critical funding to 90 percent of school districts across the Nation and helping them provide students in low-income communities the academic opportunities and support they need to succeed. This increase in funding addresses chronic funding gaps between high-poverty schools—which disproportionately serve students of color—and their wealthier counterparts.
Taking Historic Action to Cut Energy Bills for Families and Confront the Climate Crisis While Creating Clean Energy Jobs Across America
Cuts Energy Bills for Families and Creates Jobs Building Clean Energy Infrastructure. The Budget invests $4.5 billion in clean energy across America, bringing jobs to rural communities and cities, leaving no one behind. The Budget supports clean energy workforce development and sustainable infrastructure projects across the country, including $1.8 billion to weatherize and retrofit low-income Americans’ homes, and $83 million to electrify Tribal homes and transition Tribal Colleges and universities to renewable energy.
Makes Historic Investments in Science & Research to Continue to Cut the Cost of Clean Energy. To boost American innovation and sustain American leadership in research and scientific discovery, the Budget also provides a historic investment of $16.5 billion in climate science and clean energy innovation. The Budget includes $3.5 billion of the $8.8 billion total for DOE’s Office of Science and $1.6 billion at NSF, and makes advancements toward the CHIPS and Science Act authorizations, including $1 billion for fusion, the largest ever investment in the promise of a clean energy power source.
Cuts Global Warming Pollution. The Budget invests in reducing global warming pollution and achieving the President’s target to cut greenhouse gas emissions 50-52 percent by 2030. These investments include an additional $64.4 million at EPA to implement the American Innovation and Manufacturing (AIM) Act and continue phasing out potent greenhouse gases known as hydrofluorocarbons (HFCs). The Budget supports $1.2 billion in DOE industrial decarbonization activities.
Helps Increase Climate Resilience and Bolsters Conservation. The Budget invests more than $24 billion to help build communities’ resilience to floods, wildfires, storms, extreme heat, and drought brought on by climate change, expand conservation and ecosystem management, strengthen America’s natural disaster response capabilities, increase the resilience of rural housing to the impacts of climate change while reducing rent burdens, and ensure the resilience of our nation’s defense to climate change.
Advances Equity and Environmental Justice. The Administration continues to prioritize efforts to deliver environmental justice in communities across the United States, including meeting the President’s Justice40 Initiative to ensure that 40 percent of the overall benefits of Federal investments in climate and clean energy reach disadvantaged communities, including rural and Tribal communities. The Budget bolsters these efforts by investing nearly $1.8 billion at EPA across numerous programs that will support securing environmental justice for communities that bear the brunt of toxic pollution and climate change. The Budget also provides EPA $219 million to help remediate lead contamination in water, an increase of $163 million over the 2023 enacted level.
Increases Global Energy Security, Infrastructure, and Resilience. The Budget supports the President’s pledges to more than quadruple international climate finance and to provide more than $3 billion for the President’s Emergency Plan for Adaptation and Resilience (PREPARE). This includes a $1.6 billion contribution to the Green Climate Fund and a $1.2 billion loan to the Clean Technology Fund. The Budget also advances new tools, such as loan guarantees, to re-assert U.S. leadership in the Indo-Pacific to finance energy security and infrastructure projects and reduce reliance on volatile energy supplies and prices.
Expanding Access to High-Quality Health Care and Improving Health Outcomes
Advances Maternal Health and Health Equity. The United States has the highest maternal mortality rate among developed nations, and rates are disproportionately high for Black and American Indian and Alaska Native women. The Budget includes $471 million to reduce maternal mortality and morbidity rates; expand maternal health initiatives in rural communities; implement implicit bias training for health care providers; create pregnancy medical home demonstration projects; and address the highest rates of perinatal health disparities, including by supporting the perinatal health workforce. In addition, the Budget requires all States to provide continuous Medicaid coverage for 12 months postpartum, eliminating gaps in health insurance at a critical time.
Advances Cancer Moonshot Goals. The Cancer Moonshot aims to reduce the cancer death rate by at least 50 percent over the next 25 years and improve the experience of people who are living with or have survived cancer, their families, and caregivers. The Budget includes $1.7 billion for dedicated Cancer Moonshot activities across the Department of Health and Human Services (HHS), in addition to targeted investments at the Departments of Veterans Affairs, Defense, Agriculture, and other Cancer Cabinet agencies, and a total investment of $7.8 billion at the National Cancer Institute (NCI) to drive progress on ways to prevent, detect, and treat cancer. The Budget also provides an increase of $1 billion for the Advanced Research Projects Agency for Health (ARPA-H), for a total of $2.5 billion, to drive innovative health research and speed the implementation of breakthroughs that would transform the treatment, prevention, and early detection of cancer and other diseases.
Transforms Behavioral Health Care. The United States is facing a mental health crisis. While recently enacted legislation takes significant steps to address this crisis, much more can be done. For people with private health insurance, the Budget expands coverage of mental health benefits and strengthens the network of behavioral health providers. For people with Medicare, the Budget lowers patients’ costs for mental health services, requires parity in coverage between behavioral health and medical benefits, and expands coverage for behavioral health providers. The Budget provides historic investments in the behavioral health workforce, youth mental health care, Certified Community Based Behavioral Health Clinics, Community Mental Health Centers, and mental health research.
Making Our Communities Safer, Advancing Equity and Opportunity, and Strengthening American Democracy
Invests in Federal Law Enforcement, Community Violence Interventions, and Prevention to Combat Gun Violence and Other Violent Crime. The Budget continues to fund the President’s comprehensive Safer America Plan, including funding to put 100,000 additional police officers on our streets for accountable, community-oriented policing; $19.4 billion over 10 years for crime prevention strategies; and $5 billion over 10 years for community violence interventions. The Budget also includes $17.8 billion for DOJ law enforcement, including a total of nearly $2 billion for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to expand multijurisdictional gun trafﬁcking strike forces with additional personnel, increase regulation of the ﬁrearms industry, and implement the Bipartisan Safer Communities Act. The Budget also includes $1.9 billion for the U.S. Marshals Service to support personnel dedicated to ﬁghting violent crime, as well as $51 million to the Federal Bureau of Investigation (FBI) to support the continued implementation of enhanced background checks required by the Bipartisan Safer Communities Act.
Prioritizes Efforts to End Gender-Based Violence. The Budget proposes $1 billion to support implementation of programs through the Violence Against Women Act of 1994 (VAWA), which was recently reauthorized and strengthened in 2022. The Budget supports substantial increases for longstanding VAWA programs, including key investments in legal assistance for victims, transitional housing, and sexual assault services. The Budget also includes $519 million for the Family Violence Prevention and Services (FVPSA) program and the National Domestic Violence Hotline to support domestic violence survivors—double the 2023 enacted level.
Advances Child and Family Well-Being in the Child Welfare System. The Budget proposes to expand and incentivize the use of evidence-based foster care prevention services to keep families safely together and reduce the number of children entering foster care. The Budget provides States with support to place more foster children with relatives or other adults who have an existing emotional bond with the children, while also providing additional funding to support youth who age out of care without a permanent caregiver. In addition, the Budget proposes to make the adoption tax credit refundable and to extend the credit to legal guardianships. This would reduce the financial burden on low- and moderate-income families wishing to pursue adoption, as well as for families who opt for legal guardianship.
Strengthens Our Democracy. To continue efforts to restore and strengthen American democracy, the Budget proposes $5 billion in new election assistance funding to be allocated over 10 years, $1.5 billion to support increasing the living allowance provided to AmeriCorps members so that national service is a more accessible pathway to success, and $73 million to support American history and civics education programs.
Keeping America Safe and Confronting Global Challenges
Even as he has taken decisive action to strengthen America at home, the President has worked with allies and partners to confront pressing global challenges. The Budget builds on that progress through proposals to continue addressing threats to global security and strengthening the U.S. military, addressing pressing global challenges, strengthening border security and the U.S. immigration system, and honoring America’s commitment to veterans, servicemembers, families, caregivers, and survivors.
Supports Ukraine, European Allies, and Partners. The Budget continues support for Ukraine, the United States’ strong alliance with the states of the North Atlantic Treaty Organization (NATO), and other European partner states by prioritizing funding to enhance the capabilities and readiness of U.S. forces, NATO allies, and regional partners in the face of continued Russian aggression.
Invests in New Ways to Out-Compete China and Deepens Alliances and Partnerships in the Indo-Pacific. China is the United States’ only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it. During these unprecedented and extraordinary times, the Budget requests both discretionary and mandatory resources to out-compete China and advance American prosperity globally. The mandatory proposal will strengthen the U.S. role in the Indo-Pacific, and advance the U.S. economy by investing $2 billion to create a new International Infrastructure Fund to support “hard” critical infrastructure; $2 billion to create a new equity revolving fund at the U.S. International Development Finance Corporation to support equity investments; and $2 billion to make game-changing investments in the Indo-Pacific to strengthen partner economies and support their efforts in pushing back against predatory efforts. As part of this mandatory proposal, the Budget also requests a total of $7.1 billion over the next 20 years for the Compacts of Free Association with the Freely Associated States of the Marshall Islands, Micronesia, and Palau.
Promotes Integrated Deterrence in the Indo-Pacific and Globally. The Budget prioritizes China as America’s pacing challenge in line with the 2022 National Defense Strategy. The Department of Defense’s 2024 Pacific Deterrence Initiative highlights $9.1 billion of targeted investments the Department is making to U.S. force posture, infrastructure, presence, and readiness as well as efforts to bolster the capacity and capabilities of U.S. allies and partners in the Indo-Pacific region.
Strengthens Democracy and Promotes Human Rights Globally. The Budget provides more than $3.4 billion to advance democratic governance and foster democratic renewal globally. The Budget would strengthen free and independent media, fight corruption, bolster democratic institutions, advance technology for democracy, promote gender equality and women’s civic and political participation, and defend free and fair elections and political processes.
Enhances Border Security and Immigration Enforcement. Strengthening border security and providing safe, lawful pathways for migration remain top priorities for the Administration. The Budget includes nearly $25 billion for U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE). The Budget includes funds for CBP to hire an additional 350 Border Patrol Agents, $535 million for border technology at and between ports of entry, $40 million to combat fentanyl trafficking and disrupt transnational criminal organizations, and funds to hire an additional 460 processing assistants at CBP and ICE.
Expands Health Care, Benefits, and Services for Military Environmental Exposures. The PACT Act represents the most significant expansion of VA health care and disability compensation benefits for veterans exposed to burn pits and other environmental exposures in more than 30 years. As part of the PACT Act, the Congress authorized the Cost of War Toxic Exposures Fund (TEF) to fund increased costs above 2021 funding levels for health care and benefits delivery for veterans exposed to a number of environmental hazards—and ensure there is sufficient funding available to cover these costs without shortchanging other elements of veteran medical care and benefit delivery. The Budget provides $20.3 billion for the TEF in 2024, which is $15.3 billion above the 2023 enacted level.
Reducing Deficits by Nearly $3 Trillion by Making the Wealthy and Big Corporations Pay Their Fair Share and Cutting Wasteful Spending on Big Pharma, Big Oil, and Special Interests
After inheriting historically high deficits from the previous Administration, President Biden told the American people he would reduce the deficit, pay for his proposals, and ensure that no one making less than $400,000 a year would pay a penny more in new taxes. That’s exactly what he has done—and exactly what he will continue to do.
The President’s Budget builds on the record-breaking deficit reduction he achieved during his first two years in office. It more than fully pays for its investments, reduces deficits by nearly $3 trillion over the next decade by making the wealthy and big corporations pay their fair share and cutting wasteful spending on Big Pharma, Big Oil, and other special interests, and ensures that no one making less than $400,000 per year will pay a penny more in new taxes.
The Budget reflects the President’s ironclad belief that we need a tax system that rewards work, not wealth—and that ensures the wealthiest Americans and biggest corporations don’t pay lower tax rates than teachers or firefighters. That’s in sharp contrast with Congressional Republicans, who in recent months have proposed policies that would add $3 trillion to the debt over the next decade while handing out tax giveaways to the wealthy and big corporations.
Building on the progress the President has already made to promote a fairer tax code, the Budget proposes additional reforms that would ensure the wealthy and corporations pay their fair share while cutting wasteful spending on Big Pharma, Big Oil, and other special interests.
Proposes a Minimum Tax on Billionaires. The tax code currently offers special treatment for the types of income that wealthy people enjoy. While the wages and salaries that everyday Americans earn are taxed as ordinary income, billionaires make their money in ways that are taxed at lower rates, and sometimes not taxed at all. This special treatment, combined with sophisticated tax planning and giant loopholes, allows many of the wealthiest Americans to pay lower rates on their full income than many middle-class households pay. To finally address this glaring problem, the Budget includes a 25 percent minimum tax on the wealthiest 0.01 percent.
Ensures Corporations Pay Their Fair Share. The Budget includes an increase to the rate that corporations pay in taxes on their profits. Corporations received an enormous tax break in 2017, cutting effective U.S. tax rates for U.S. corporations to a low of less than 10 percent. While their profits soared, their investment in the economy did not. Their shareholders and top executives reaped the benefits, without the promised trickle down to workers, consumers, or communities. The Budget would set the corporate tax rate at 28 percent, still well below the 35 percent rate that prevailed prior to the 2017 tax law. This tax rate change is complemented by other proposals to incentivize job creation and investment in the United States and ensure large corporations pay their fair share.
Stops the Race to the Bottom in International Corporate Tax and End Tax Breaks for Offshoring. For decades, countries have competed for multinational business by slashing tax rates, at the expense of having adequate revenues to finance core services. Thanks in part to the Administration’s leadership, more than 130 nations signed on to a global tax framework to finally address this race to the bottom. Building on that framework, the Budget proposes to reform the international tax system to reduce the incentives to book profits in low-tax jurisdictions, stop corporate inversions to tax havens, and raise the tax rate on U.S. multinationals’ foreign earnings from 10.5 percent to 21 percent. These reforms will ensure that profitable multinational corporations pay their fair share.
Quadruples the Stock Buybacks Tax. Last year, the President signed into law a surcharge on corporate stock buybacks, which reduces the differential tax treatment between buybacks and dividends and encourages businesses to invest and grow as opposed to funneling tax-preferred profits to foreign shareholders. The Budget proposes quadrupling the stock buybacks tax from one percent to four percent to address the continued tax advantage for buybacks and encourage corporations to invest in productivity and the broader economy.
Repeals Trump Tax Cuts for the Wealthy and Reform Capital Gains Tax to Ensure the Wealthy Pay Their Fair Share. The 2017 tax law lowered rates for the wealthiest Americans, delivering massive tax cuts to the top one percent. The Budget repeals the Trump tax cuts for the highest-income Americans, restoring the top tax rate of 39.6 percent for single filers making more than $400,000 a year and married couples making more than $450,000 per year. It also proposes taxing capital gains at the same rate as wage income for those with more than $1 million in income and finally closes the carried interest loophole that allows some wealthy investment fund managers to pay tax at lower rates than their secretaries.
Cuts Wasteful Spending on Big Pharma, Big Oil, and Other Special Interests, Combats Fraud, and Makes Programs More Efficient. The Budget puts forward reforms that cut wasteful spending on Big Pharma, Big Oil, and other special interests, crack down on fraud, and strengthen program integrity—saving taxpayers hundreds of billions of dollars. For example, the Budget cuts Federal spending by $160 billion—and saves billions of dollars for seniors—by increasing the number of drugs Medicare can select for negotiation and bringing more drugs into the negotiation process sooner, building on the Inflation Reduction Act’s reforms. It also includes a package of reforms to crack down on systemic fraud—combatting identity theft and other fraud in Unemployment Insurance, increasing funding for the Anti-Pandemic Fraud Strike Force, and investing in Inspectors General.
Further evidence that President Joe Biden’s economic plan – essentially building the economy from the bottom up and the middle out, and creating longterm, sustainable, stable growth – is working. Despite the manufactured hysteria over inflation and impending recession, the data shows otherwise – in terms of record 12 million jobs created, lowest unemployment in 50 years, real increase in wages.
Biden is also able to show progress in slowing inflation – which has been much more crippling throughout the world – and has been able to demonstrate that while his economic policies will address the national debt (a record reduction in the budget deficit), Republicans’ agenda would worsen the national debt (largely caused by the Trump/GOP tax plan that reduced taxes on the wealthiest individuals and corporations, and which added $7.4 trillion, or 25% of the national debt, in the four-year term). The Republican plan would actually add $3 trillion MORE to the national debt.
President Biden, commenting on the January CPI Report, said:
“Inflation in America is continuing to come down, which is good news for families and businesses across the country. Today’s data confirm that annual inflation has fallen for seven straight months. Inflation for food at the grocery store came down again last month. Gas prices are down about $1.60 from their peak last year. And real wages for working Americans are up over the last seven months, delivering welcome breathing room for American families. We are seeing this progress even as unemployment remains at its lowest level since 1969 and job growth remains resilient.”
“There is still more work to do as we make this transition to more steady, stable growth, and there could be setbacks along the way. That is why my unwavering focus is on continuing to lower costs for families, rebuild our supply chains, and invest in America. Right now, because of the Inflation Reduction Act we passed last year, we are lowering prescription drug costs, health care costs, and home energy costs for tens of millions of Americans all while lowering our deficits. My administration is eliminating junk fees which make it harder for American families to make ends meet at the end of the month. And we are creating manufacturing jobs all across the country, which will lower costs and rebuild our supply chains.”
“Unfortunately, many of my Republican friends in Congress seem intent on taking us in the opposite direction. They have proposed repealing the Inflation Reduction Act, which would make inflation worse, shower billions of dollars on Big Pharma, and increase the deficit. They are threatening to raise costs for seniors by threatening to cut Medicare and Social Security, and other critical programs that American seniors and families count on. And some are threatening to default on the full faith and credit of the U.S., which would raise costs and create economic chaos. I will stand firmly against any effort to make inflation worse and increase costs for families. Today’s data reinforces that we have made historic progress and are on the right track, and now we need to finish the job. “
The Congressional Republican Agenda to Increase the Debt by Over $3 Trillion
CongressionalRepublicanleaders insist that the national debt is among our nation’s greatest challenges, and reducing it is among their highest priorities. In fact, they claim that reducing the debt is so urgent it warrants endangering the entire U.S. economy through debt limit brinksmanship. But their legislative agenda to date points in a very different direction—with proposals that would increase the debt by over $3 trillion.
The first bill passed by the new Republican House majority increased the debt by $114 billion by allowing wealthy people and corporations to continue to cheat on their taxes.
Congressional Republicans proposed repealing—and are even running ads attacking—reforms President Biden signed to lower prescription drug costs. Repealing these policies would increase the amount of money Medicare pays Big Pharma, raise costs for seniors, and add $159 billion to the debt.
House Republicans have advocated and proposed repealing tax increases on large corporations that President Biden has signed into law, adding $296 billion to the debt.
Grover Norquist, President of Americans for Tax Reform, exposed the political logic of Congressional Republicans’ fiscal hypocrisy. He told Republicans their focus should be “not the deficit” after all: it’s to shift public discussion to cutting spending, paving the way for more tax cuts for the wealthy.
That trickle-down economic theory has never worked. President Trump and President Bush’s tax cuts addedtrillions to the debt and failed to deliver their promised benefits for the economy or American workers. And taking revenues—and even savings from cutting corporate subsidies—off the table means Congressional Republicans consistently propose deep cuts to programs seniors and middle-class and working families count on.
That’s why the American people deserve to see Congressional Republicans’ full and detailed budget plan and compare it with the President’s Budget plan to invest in America, bring down costs for families, protect and strengthen Social Security and Medicare, and reduce the deficit, which he will release March 9.
Congressional Republicans’ Commitment to Debt Increases
The fiscal consequences of the debt increases Congressional Republicans have put at the top of their agenda are stark. After a decade, these policies, if enacted, would add over $3 trillion to the debt (accounting for debt service costs), increasing debt as a share of the economy by almost 10 percentage points. Congressional Republicans’ debt increases include:
The Tax Cheats Protection Act: House Republicans’ first bill in the new Congress would add $114 billion to the Federal debt by repealing President Biden’s legislation that cracks down on wealthy tax cheats. While working people pay 99% of taxes on their income from wages and salaries, the top 1% hides about 20% of their income from tax, including by funneling it through offshore accounts and tax havens that do not report earnings. President Biden passed a law to make our tax system fairer by cracking down on wealthy tax cheats, while protecting middle-class taxpayers and small businesses and improving taxpayer service. But 221 House Republicans voted to enable tax fraud by wealthy Americans and large corporations.
Increase Spending With a Handout to Big Pharma: House Republicans have introduced a bill to repeal the entire Inflation Reduction Act (IRA), including the reforms President Biden signed into law to lower prescription drug costs. Congressional Republicans and Big Pharma have launched a concertedattack on the IRA’s prescription drug reforms, advocating to increase both Federal spending and seniors’ costs to increase Big Pharma’s profits. Thanks to the new prescription drug law, Medicare will finally be able to negotiate drug prices, and drug companies will pay rebates to Medicare if they try to hike their prices faster than the rate of inflation. Congressional Republicans want to repeal these policies, giving a $159 billion handout to Big Pharma, raising costs for seniors, and driving up the Federal debt.
Enrich Multi-Billion Dollar Corporations: In 2020, 55 of the largest, most profitable corporations paid $0 in taxes. The President signed into law legislation to level the playing field for companies and small businesses that are already paying their fair share in taxes. Under his corporate minimum tax, the largest, most profitable corporations—those with over $1 billion in profits—have to pay a 15% minimum tax on the profits they report to their shareholders. But House Republicans—through their Inflation Reduction Act repeal bill and other statements—have made clear that they want to enrich large corporations that don’t pay their fair share. That would add $222 billion to the debt.
Increase the Tax Subsidy for Stock Buybacks: President Biden signed into law a surcharge on corporate stock buybacks, which reduces the differential tax treatment between buybacks and dividends and encourages businesses to invest in their growth and productivity as opposed to paying out corporate executives or funneling tax-preferred profits to foreign shareholders. The President in his State of the Union address proposed quadrupling the stock buybacks tax to 4% to address the continued tax advantage for buybacks and encourage long-term investment over giveaways to executives. House Republicans instead want to repeal the stock buybacks tax and let corporations continue to funnel tax-preferred profits to shareholders instead of investing in productivity and the broader economy. That would add $74 billion to the Federal debt.
Extend President Trump’s Unpaid-for Tax Giveaway to the Wealthy and Large Corporations: President Trump and Congressional Republicans deliberately sunset portions of their tax giveaway to the wealthy and large corporations. They did this to conceal how much their plan added to the debt as well as how large the tax breaks were for multi-millionaires and large corporations. Now, House RepublicanLeadership has made clear that extending President Trump’s tax giveaway to the wealthy and large corporations is one of their top priorities. An analysis by the Tax Policy Center found that doing so would mean an average tax cut of $175,000 for the top 0.1%—Americans making more than $4 million per year. That average tax cut is more than 2.5 times a typical family’s annual income. Meanwhile, extending the expiring Trump tax cuts would add $2.7 trillion to the Federal debt over 10 years.
The President supports a fiscally responsible approach to continuing current tax policies for people making less than $400,000 per year, and opposes any tax increase for this group. Meanwhile, Congressional Republicans—including the more than three quarters of them who are signatories to Grover Norquist’s tax pledge—have made clear they will oppose paying for middle-class tax cuts by raising taxes on the wealthy and large corporations.
Even Without a Budget, Congressional Republicans Are Already Showing Who Will Pay the Price
The proposals Congressional Republicans have put forward show that, even as they commit to massive tax cuts for the wealthy and large corporations, they are more than ready to raise taxes on middle-class and working families. The House Republican IRA repeal bill would cut premium tax credits that are helping an estimated 14.5 million people pay for health insurance. And the House Budget Committee last week doubled down on eliminating Affordable Care Act premium tax credits for middle-income people with high health insurance premiums: a tax increase of $7,600 per year for a typical 62-year old earning $55,000.
In addition, some Congressional Republicans continue to push a national retail sales tax bill that would repeal most existing taxes and impose a new 30% sales tax on American families. The legislation would increase debt by trillions—and cut taxes for a couple making a million dollars a year by more than $200,000—and at the same time would raise taxes by at least $7,000 for a retired couple with $60,000 in Social Security income and at least $6,000 for a single mom making $38,000, a recent analysis found.
The bottom line is: having committed to over $3 trillion in debt increases and also insisted they are committed to reducing the debt, Congressional Republicans owe the American public a complete and transparent accounting of who will foot the bill. Will it be middle-class and working families, seniors, students, or all of the above?
House Republican agenda amounts to a death panel for Medicare and Social Security:
The contrast in agendas for America between President Joe Biden and the Democrats and the Congressional Republicans could not be more stark.
While President Biden, in his State of the Union address, described his plans for building on the historic job creation he has achieved, making more progress against inflation, reducing the deficit by making the wealthy and big corporations pay their fair share, and protecting Medicare and Social Security benefits from cuts, in contrast, House Republicans opened the week by announcing the latest in a long succession of attempts to undermine Medicare and Social Security.
Bloomberg reports that as part of a ransom demand for not triggering a financial meltdown, top House Republicans want an agreement that both earned benefits programs are put on track for cuts.
As The Washington Post reported in late January, House Republicans have continuously pressed for slashing Medicare and Social Security benefits in exchange for not actively harming the American economy with the first debt default in our history.
Republicans have also introduced legislation to repeal the Inflation Reduction Act, which would be one of the biggest Medicare benefit cuts in history, depriving seniors of lower insulin costs, the $2,000 cap on out of pocket expenses for prescription drugs, and Medicare’s new ability to negotiate lower drug costs.
Today’s news is even more confirmation that House Republicans are taking direct aim at programs that are critical to the middle class, even as they vote for tax giveaways to the rich that would manage to increase taxes on working families while raising the deficit at the same time, the White House stated.
“With the President poised to announce new plans to keep making our economy works from the bottom up and the middle out – not the top down – House Republicans are dead-set on the opposite,” said White House spokesperson Andrew Bates. “They’re opening the week unveiling their latest in a long line of ultimatums about how they’ll act to kill jobs, businesses, and retirement accounts if they can’t cut Medicare and Social Security benefits. Meanwhile, they’re voting to worsen the deficit with tax welfare for the rich and big corporations. Think about that: they’re targeting the Medicare and Social Security benefits that middle class families pay in to earn their whole lives, then turning around and giving tax handouts to big corporations. The American people want more jobs and lower costs, not a death panel for Medicare and Social Security.”
“While President Biden shows the American people his plan to build on the unprecedented deficit reduction his leadership has already delivered, by having the richest taxpayers and big corporations pay their fair share and lowering prescription drug prices, House Republicans’ only plan is to make the deficit skyrocket by over $3 trillion with unaffordable tax giveaways to wealthy special interests,” stated White House spokesperson Andrew Bates. “They’ve even proposed raiding Medicare so that the ultra-rich can enjoy new tax welfare. Meanwhile, House Republicans are threatening to actively throw our economy into a tailspin with a default – which they have a non-negotiable, Constitutional duty to prevent – unless they can further cut Social Security, Medicare and Medicaid. It’s utterly backwards. The President is delivering on his commitment to build an economy that grows from the bottom up and the middle out – not from the top down. The House GOP seems determined to pull the American economy in the opposite direction, increasing taxes on working families while giving $3 trillion in new handouts for the rich.”
The chart below is based on the record:
10-Year Deficit Increase
Republican House-passed bill to make it easier for billionaires to cheat on their taxes
Deficit increases from Republican proposals to date
Over $3 trillion
Congressional Republicans keep calling for earned benefits on the one hand, but more tax giveaways for the rich on the other
After President Biden put Republicans on the defensive over their long-public intentions to slash Medicare and Social Security benefits, a continuing list of congressional Republicans ranging from Ron Johnson last week to Senator Mike Rounds yesterday, keep proving his point.
Whether it’s a large number of House Republicans and Rick Scott pushing to repeal the Inflation Reduction Act in what would be one of the worst Medicare benefit cuts of all time, or the Republican Study Committee proposing benefit cuts and the privatization of Social Security of last year, the receipts are undeniable. Formonths, congressional Republicans have indicated they would even use the threat of a catastrophic default to cut Medicare and Social Security benefits.
Republicans in Congress justify these intentions under the guise of fiscal responsibility. However, at the same time, they are advocating for enormous tax giveaways to rich special interests that, combined, would add over $3 trillion to the debt. Those two positions are irreconcilable.
The first vote the Republican-controlled House took was to help wealthy individuals and multinational corporations worsen inflation by cheating on their taxes. They broadly support renewing the Trump tax giveaways for the rich. And in addition to being a Medicare benefit cut, repealing the Inflation Reduction Act would at the same time be more tax welfare for the rich and a giant windfall for Big Pharma. And that’s just the tip of the iceberg.
“It’s irreconcilable to support Medicare and Social Security benefit cuts in the name of supposed ‘fiscal responsibility,’ while at the same time adding $3 trillion to the national debt with a seemingly endless gravy train for rich special interests,” said White House spokesperson Andrew Bates. “Prioritizing tax giveaways for the wealthy and specific handouts for Big Pharma over the Medicare and Social Security benefits that middle class families pay to earn throughout their lives is a recipe for making our economy work from the top-down. The last thing that Americans who’ve felt invisible want is cuts to lifeline programs in exchange for permanent trickle-down economics.”
This is President Joe Biden’s statement about his FY2023 budget proposal:
Budgets are statements of values, and the budget I am releasing today sends a clear message that we value fiscal responsibility, safety and security at home and around the world, and the investments needed to continue our equitable growth and build a better America.
My Administration is on track to reduce the federal deficit by more than $1.3 trillion this year, cutting in half the deficit from the last year of the previous Administration and delivering the largest one-year reduction in the deficit in U.S. history. That’s the direct result of my Administration’s strategy to get the pandemic under control and grow the economy from the bottom up and the middle out. We spent less money than the last Administration and got better results: strong economic growth, which has increased revenues and allowed us to responsibly scale back emergency spending. My budget will continue that progress, further reducing the deficit by continuing to support the economic growth that has increased revenues and ensuring that billionaires and large corporations pay their fair share.
At the same time, my budget will make investments in securing our nation and building a better America. We will secure our communities by putting more police on the street to engage in accountable community policing, hiring the agents needed to help fight gun crime, and investing in crime prevention and community violence intervention.
I’m calling for one of the largest investments in our national security in history, with the funds needed to ensure that our military remains the best-prepared, best-trained, best-equipped military in the world. In addition, I’m calling for continued investment to forcefully respond to Putin’s aggression against Ukraine with US support for Ukraine’s economic, humanitarian, and security needs.
My budget also makes the investments needed to reduce costs for families and make progress on my Unity Agenda – including investments to cut the costs of child care and health care; help families pay for other essentials; end cancer as we know it; support our veterans; and get all Americans the mental health services they need.
All told, it is a budget that includes historic deficit reduction, historic investments in our security at home and abroad, and an unprecedented commitment to building an economy where everyone has a chance to succeed.
And here’s what in the Biden budget:
FACT SHEET: The President’s Budget for Fiscal Year 2023
Under the President’s leadership, America is on the move again. We created more than 6.5 million jobs in 2021, the most our country has ever recorded in a single year. Our economy grew at 5.7 percent, the strongest growth in nearly 40 years. And the unemployment rate has fallen to 3.8 percent, the fastest decline in recorded history. At the same time, the deficit fell last year—by around $300 billion. This progress was a direct result of the President’s strategy to grow the economy from the bottom up and the middle out and his effective management of the American Rescue Plan—a strategy that was built on smart, fiscally prudent investments that helped jumpstart our economy.
As our historic economic and labor market recovery continues, the President’s Budget projects that the deficit in 2022 will be more than $1.3 trillion lower than last year’s—the largest ever one-year decline in our country’s history. The strongest economic growth in four decades, powered by the American Rescue Plan, has also contributed to a historic decline in the deficit—by fueling strong revenue growth and allowing the Administration to responsibly phase down emergency pandemic-related spending.
Today, the President released a Budget that details his vision to expand on our economic and fiscal progress—investing in our economy and our people while cutting deficits, improving our country’s long-term fiscal outlook, and keeping the economic burden of debt low.
As he made clear in his State of the Union address, the President is committed to working with Congress to enact legislation that lowers costs for American families, expands the productive capacity of the American economy, and further reduces the deficit: by reducing prescription drug costs and fixing the tax code to ensure corporations and wealthy people pay the taxes they already owe and close loopholes they exploit.
The President’s FY 2023 Budget also proposes additional smart, targeted investments designed to spur durable economic growth, create jobs, reduce cost pressures, and foster shared prosperity. These investments are more than fully paid-for through tax reforms that ensure corporations and the wealthiest Americans pay their fair share, while also fulfilling the President’s ironclad promise that no one earning less than $400,000 per year will pay an additional penny in new taxes. Overall, the Budget reduces deficits by more than $1 trillion over the next 10 years and deficits under the Budget policies would fall to less than one-third of the 2020 level the President inherited.
The Budget improves our country’s long-term fiscal outlook while also delivering on the ambitious agenda the President laid out in his State of the Union address—to build a better America, reduce costs for families, advance equity, and grow our economy from the bottom up and the middle out. It proposes significant new investments in proven strategies to reduce gun crime and keep our communities safe. It makes additional investments in the American people that will help lay a stronger foundation for shared growth and prosperity. It advances a bipartisan unity agenda through proposals to take on the mental health crisis, combat the opioid epidemic, support our veterans, and accelerate progress against cancer. And during what will be a decisive decade, it strengthens our military and leverages America’s renewed strength at home to meet pressing global challenges, deepen partnerships and alliances, and manage crises as they arise.
PUTTING THE NATION ON A SOUND FISCAL AND ECONOMIC COURSE
The Budget proposes smart, targeted, fully-offset investments while also cutting deficits, improving our country’s long-term fiscal outlook, and keeping the economic burden of debt low. The Budget’s investments are more than paid for with tax reforms focused on making sure the rich and the largest corporations pay their fair share, reducing deficits by over $1 trillion over the next 10 years.
Proposes a New Minimum Tax on Billionaires. The tax code currently offers special treatment for the types of income that wealthy people enjoy. This special treatment, combined with sophisticated tax planning and giant loopholes, allows many of the very wealthiest people in the world to end up paying a lower tax rate on their full income than many middle-class households. To finally address this glaring problem, the Budget includes a minimum tax on multi-millionaires and billionaires who so often pay indefensibly low tax rates. This minimum tax would apply only to the wealthiest 0.01 percent of households—those with more than $100 million—and over half the revenue would come from billionaires alone. It would ensure that, in any given year, they pay at least 20 percent of their total income in Federal income taxes.
Ensures Corporations Pay Their Fair Share. The Budget also includes an increase to the rate that corporations pay in taxes on their profits. Corporations received an enormous tax break in 2017. While their profits have soared, their investment in our economy did not: the tax breaks did not trickle down to workers or consumers. Instead of allowing some of the most profitable corporations in the world to avoid paying their fair share, the Budget raises the corporate tax rate to 28 percent, still the lowest tax rate faced by corporations since World War II except in the years after the 2017 tax cut. This increase is complemented by other changes to the corporate tax code that incentivize job creation and investment in the United States and ensure that large corporations pay their fair share.
Prevents Multinational Corporations from Using Tax Havens to Game the System. For decades, American workers and taxpayers have paid the price for a tax system that has rewarded multinational corporations for shipping jobs and profits overseas. Last year, the Administration rallied more than 130 countries to agree to a global minimum tax that will ensure that profitable corporations pay their fair share and will incentivize U.S. multinationals to create jobs and invest in the United States. The Budget contains additional measures to ensure that multinationals operating in the United States cannot use tax havens to undercut the global minimum tax.
Advancing Legislation to Lower Costs, Reduce the Deficit, and Expand Productive Capacity
The President is committed to working with Congress to sign legislation that lowers costs for American families, reduces the deficit, and expands the productive capacity of the American economy. That means cutting costs for prescription drugs, healthcare premiums, child care, long-term care, housing, and college; reducing energy costs by combatting climate change and accelerating the transition to a clean energy economy; supporting families by providing access to free, high-quality preschool, up to two years of free community college, nutritious food at school and resources to purchase food over the summer months, and paid family and medical leave and by continuing the enhanced Child Tax Credit and Earned Income Tax Credit; and providing health coverage to millions of uninsured Americans. The President believes these proposals must be paired with reforms that ensure corporations and the wealthiest Americans pay their fair share, including ensuring that they pay the taxes they already owe.
Because discussions with Congress continue, the President’s Budget includes a deficit neutral reserve fund to account for a future agreement, preserving the revenue from tax and prescription drug reforms the President proposed last year for this legislation for the investments needed to bring down costs for American families and expand our productive capacity.
BUILDING A BETTER AMERICA
The Budget includes smart, targeted investments in the American people that will help build a better America. It will keep our communities safe and combat violent crime; promote job creation and expand the productive capacity of our economy; improve our public health infrastructure; ensure America leads the world in combating the climate crisis; and advance equity and opportunity for all. It strengthens our military and leverages America’s renewed strength at home to meet pressing global challenges, deepen partnerships and alliances, and manage crises as they arise.
Combating Crime to Keep Our Communities Safe
Puts More Police Officers on the Beat. The Budget provides $3.2 billion in discretionary resources for State and local grants, and $30 billion in mandatory resources to support law enforcement, crime prevention, and community violence intervention, including putting more officers for community policing on the beat across the Nation.
Provides More Tools to Tackle Gun Violence. The Budget provides $1.7 billion for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to expand multijurisdictional gun trafficking strike forces with additional personnel, increase regulation of the firearms industry, enhance ATF’s National Integrated Ballistic Information Network, and modernize the National Tracing Center.
Increases Federal Law Enforcement Capacity to Combat Violent Crime. Under the President’s Budget, key Federal law enforcement agencies like the FBI and U.S. Marshals Service will have the resources they need fight violent crime, including through fugitive apprehension and enforcement operations. The Budget also ensures U.S. Attorneys have the necessary support to prosecute violent crimes.
Strengthens Civil Rights Enforcement. The Budget makes important investments to support law enforcement while addressing longstanding inequities and strengthening civil rights protections. The Budget invests $367 million, an increase of $101 million over the 2021 enacted level, at the Department of Justice to support police reform, the prosecution of hate crimes, enforcement of voting rights, and efforts to provide equitable access to justice.
Supports Criminal Justice System Reform. The Budget includes $100 million for a historic multi-agency collaboration to provide comprehensive workforce development services to people in the Federal prison system and proposes $106 million to support the deployment of body-worn cameras to DOJ’s law enforcement officers.
Promoting Job Creation, Reducing Cost Pressures, and Boosting Productive Capacity
Increases Affordable Housing Supply. In communities throughout the country, rents are skyrocketing and homeownership is becoming increasingly out of reach. This strains family budgets and holds back our economy – making it harder for workers to afford to live near good jobs and good transportation options. To address the critical shortage of affordable housing in communities throughout the Nation, the Budget proposes $50 billion for housing construction and supply – addressing existing market gaps and helping to stabilize housing prices over the long-term. This includes funding, via the Department of Housing and Urban Development, for state and local housing finance agencies and their partners to provide grants, revolving loan funds, and other streamlined financing tools to boost housing supply, with a particular focus on housing types that have traditionally been difficult to finance using existing Federal financing but have the potential to boost supply and density in supply-constrained communities. The Budget also includes grants to advance and reward state and local jurisdictions’ efforts to remove barriers to affordable housing development. It also includes modifying Low-Income Housing Tax Credits to better incentivize new unit production, and funding for the Department of the Treasury’s Community Development Financial Institutions Fund to support financing of new construction and substantial rehabilitation that creates net new units of affordable rental and for sale housing.
Accelerates Efforts to Move More Goods Faster through American Ports and Waterways. The Budget continues support for the historic levels of Federal investment to modernize America’s port and waterway infrastructure provided under the Bipartisan Infrastructure Law. It includes $230 million for the Port Infrastructure Development Program to strengthen maritime freight capacity, as well as $1.7 billion in spending for the Harbor Maintenance Trust Fund to facilitate safe, reliable, and environmentally sustainable navigation at coastal ports.
Strengthens the Nation’s Supply Chains through Domestic Manufacturing. To help ignite a resurgence of American manufacturing and strengthen domestic supply chains, the Budget provides $372 million, an increase of $206 million over the 2021 enacted level, for the National Institutes of Standards and Technology’s (NIST) manufacturing programs to launch two additional Manufacturing Innovation Institutes in 2023 and continue support for the two institutes funded in 2022. The Budget includes a $125 million increase for the Manufacturing Extension Partnership to make America’s small and medium manufacturers more competitive. The Budget also invests $200 million for a new Solar Manufacturing to build domestic capacity in solar energy supply chains while moving away from imported products.
Expands Access to Registered Apprenticeships and Equips Workers with Skills They Need to Obtain High-Quality Jobs. The Budget invests $303 million, a $118 million increase above the 2021 enacted level, to expand Registered Apprenticeship opportunities in high growth fields, such as information technology, advanced manufacturing, health care, and transportation, while increasing access for historically underrepresented groups, including people of color and women. In addition, the Budget invests $100 million to help community colleges work with the public workforce development system and employers to design and deliver high-quality workforce training programs. The Budget also provides $100 million for a new Sectoral Employment through Career Training for Occupational Readiness program, which will support training programs focused on growing industries, enabling disadvantaged workers to enter on-ramps to middle class jobs, and creating the skilled workforce the economy needs to thrive.
Fosters Competitive and Productive Markets and Targets Corporate Concentration. The Budget reflects the Administration’s commitment to vigorous marketplace competition through robust enforcement of antitrust law by including historic increases of $88 million for the Antitrust Division of the Department of Justice (ATR) and $139 million for the Federal Trade Commission (FTC).
Restoring American Leadership and Confronting Global Threats
Supports United States’ European Allies and Partners. The Budget includes $6.9 billion for the European Deterrence Initiative, the North Atlantic Treaty Organization (NATO), and countering Russian aggression to support Ukraine, the United States’ strong partnerships with NATO allies, and other European partner states by bolstering funding to enhance the capabilities and readiness of U.S. Forces, NATO allies, and regional partners in the face of Russian aggression.
Defends Freedom Globally. To support American leadership in defending democracy, freedom, and security worldwide, the Budget includes nearly $1.8 billion for the State Department and USAID to support a free and open, connected, secure, and resilient Indo-Pacific Region and the Indo-Pacific Strategy, and $400 million for the Countering the People’s Republic of China Malign Influence Fund. In addition, the Budget provides nearly $1 billion in assistance to Ukraine for State Department, USAID, and Department of Defense to counter Russian malign influence and to meet emerging needs related to security, energy, cyber security issues, disinformation, macroeconomic stabilization, and civil society resilience.
Promotes Integrated Deterrence in the Indo-Pacific and Globally. The Budget proposes $773 billion for the Department of Defense. To sustain and strengthen deterrence, the Budget prioritizes China as the Department’s pacing challenge. DOD’s 2023 Pacific Deterrence Initiative highlights some of the key investments the Department is making that are focused on strengthening deterrence in the Indo-Pacific region. DOD is building the concepts, capabilities, and posture necessary to meet these challenges, working in concert with the interagency and our allies and partners to ensure our deterrence is integrated across domains, theaters, and the spectrum of conflict.
Renews America’s Leadership in International Institutions. The Budget continues the Administration’s efforts to lead through international organizations by meeting the Nation’s commitments to fully fund U.S. contributions and to pay United Nations peacekeeping dues on time and in full. The Budget also provides $1.4 billion for the World Bank’s International Development Association (IDA). This investment restores the United States’ historical role as the largest World Bank donor to support the development of low- and middle-income countries, which benefits the American people by increasing global stability, mitigating climate and health risks, and developing new markets for U.S exports.
Advances Equity and Equality Globally. The Budget provides $2.6 billion to advance gender equity and equality across a broad range of sectors. This includes $200 million for the Gender Equity and Equality Action Fund to advance the economic security of women and girls. This total also includes funding to strengthen the participation of women in conflict prevention, resolution, and recovery through the implementation of the Women, Peace, and Security Act.
Advances American Leadership in Global Health, Including Global Health Security and Pandemic Preparedness. The Budget includes $10.6 billion to bolster U.S. leadership in addressing global health and health security challenges. Within this total, the Budget supports a $2 billion contribution to the Global Fund’s seventh replenishment, for an intended pledge of $6 billion over three years, to save lives and continue the fight against HIV/AIDS, tuberculosis, and malaria, and to support the Global Fund’s expanding response to COVID-19 and global health strengthening. This total also includes $1 billion to prevent, prepare for, and respond to future infections disease outbreaks, including the continued expansion of Global Health Security Agenda capacity-building programs and a multilateral financial intermediary fund for health security and pandemic preparedness
Strengthening America’s Public Health & Advancing Cures for Cancer and Other Diseases
Prepares for Future Pandemics and Other Biological Threats. In addition to combatting the ongoing COVID-19 pandemic, the United States must catalyze advances in science, technology, and core capabilities to prepare for future biological threats. The Budget makes transformative investments in pandemic preparedness across the Department of Health and Human Services (HHS)—$81.7 billion available over five years—to enable an agile, coordinated, and comprehensive public health response to protect American lives, families, and the economy.
Builds Advanced Public Health Systems and Capacity. The Budget includes $9.9 billion to build capacity at CDC and state and local levels to improve the core immunization program, expand public health infrastructure in States and Territories, strengthen the public health workforce, support efforts to modernize public health data collection, increase capacity for forecasting and analyzing future outbreaks, including at the Center for Forecasting and Outbreak Analytics, and conduct studies on Long COVID to inform diagnosis and treatment options.
Transforms Mental Health Care. The United States faces a mental health crisis that has been exacerbated by the COVID-19 pandemic. The Budget proposes reforms to health coverage and invests in the behavioral health workforce. It provides sustained and increased funding for community-based centers and clinics, and mental health staff in schools, makes historic investments in youth mental health and suicide prevention programs, and strengthens access to crisis services by building out the National Suicide Prevention Lifeline and crisis services infrastructure. These resources will help build system capacity, connect more Americans to care, and create a system of support to improve mental health for all.
Advances Maternal Health and Health Equity. The United States has the highest maternal mortality rate among developed nations, with an unacceptably high mortality rate for Black and American Indian and Alaska Native women. The Budget includes $470 million to reduce maternal mortality and morbidity rates, expand maternal health initiatives in rural communities, implement implicit bias training for healthcare providers, create pregnancy medical home projects, and address the highest rates of perinatal disparities. The Budget also expands maternal and other health initiatives in rural communities to improve access to high-quality care.
Accelerates Innovation through the Advanced Research Projects Agency for Health (ARPA-H). The Budget proposes a major investment of $5 billion for ARPA-H, significantly increasing direct Federal research and development (R&D) spending in health to improve the health of all Americans. With an initial focus on cancer and other diseases such as diabetes and dementia, this major investment will drive transformational innovation in health technologies and speed the application and implementation of health breakthroughs.
Taking Historic Steps to Combat the Climate Crisis and Advance Environmental Justice
Invests in Clean Energy Infrastructure and Innovation. The Budget invests $3.3 billion to support clean energy projects that will create good paying jobs, continue to cut to cost of clean energy, and drive progress toward President Biden’s climate goals. Investments include $502 million to weatherize and retrofit low-income homes, including $100 million for a new LIHEAP Advantage pilot to electrify and decarbonize low-income homes, and $260 million to support energy efficiency improvements to USDA-assisted multifamily homes. In addition, the Budget provides $150 million to electrify Tribal homes and transition Tribal colleges and universities to renewable energy, and $80 million for a new Grid Deployment Office to build the grid of the future.
Strengthens Climate Resilience. The Budget provides more than $18 billion for climate resilience and adaptation programs across the Federal Government. These critical investments will reduce the risk of damages from floods and storms, restore the Nation’s aquatic ecosystems, and make HUD-assisted multifamily homes more climate resilient. In line with President Biden’s commitment to ensure the American’s fighting wildfires earn $15 an hour, the Budget includes $1.8 billion in the Forest Service and Department of the Interior to strengthen the Federal firefighting workforce, increase capacity, and improve firefighter compensation.
Advances Equity and Environmental Justice. The Budget provides historic support for underserved communities, and advances the President’s Justice40 commitment to ensure 40 percent of the benefits of Federal investments in climate and clean energy reach disadvantaged communities. The Budget includes $1.45 billion to bolster the EPA’s environment justice efforts that will help create good-paying jobs, clean up pollution, implement Justice40, advance racial equity, and secure environmental justice for communities that too often have been left behind
Achieves the President’s Historic Climate Pledge. The Budget includes over $11 billion in international climate finance, meeting the President’s pledge to quadruple international climate finance a year early. This funding will accelerate the global energy transition to net zero emissions by 2050; help developing countries build resilience to the growing impacts of climate change, including through the President’s Emergency Plan for Adaptation and Resilience and other programs; and support the implementation of the President’s Plan to Conserve Global Forests. Among these critical investments are $1.6 billion for the Green Climate Fund, a critical multilateral tool for financing climate adaptation and mitigation projects in developing countries and support for a $3.2 billion loan to the Clean Technology Fund to finance clean energy projects in developing countries.
Expanding Economic Opportunity, Advancing Equity, and Strengthening our Democracy
Makes Historic Investments in K-12 Schools and Education Beyond High School. The Budget more than doubles funding for Title I compared to the 2021 enacted level through a combination of discretionary and mandatory funding. This substantial funding, which serves 25 million students in nearly 90 percent of school districts across America, is a major step toward fulfilling the President’s commitment to addressing long-standing funding disparities between under-resourced schools—which disproportionately serve students of color—and their wealthier counterparts. The Budget increases support for children with disabilities by providing a $3.3 billion increase for IDEA Grants to States – the largest two-year increase ever for the program. The budget also doubles funding for IDEA Grants for Infants and Families and proposes to reforms to increase equitable access to early intervention services with a proven record for improving academic and developmental outcomes. The Budget also provides $1 billion in sustainable funding to help schools increase the number of school counselors, psychologists, social workers and other health professionals. The Budget provides an additional $438 million for Full Service Community Schools, ramping up the mental health and wraparound supports in schools for students and their families. The Budget proposes to double the maximum Pell Grant by 2029, beginning with a historic $2,175 increase over the 2021-2022 school year, thereby expanding access and helping nearly 6.7 million students afford college.
Advances Child and Family Well-Being in the Child Welfare System. The Budget proposes to expand and incentivize the use of evidence-based foster care prevention services to keep families safely together and to reduce the number of children entering foster care, while also targeting resources to reduce the overrepresentation of children and families of color in the child welfare system. For children who do need to be placed into foster care, the Budget provides States with support to place more children with relatives or other adults who have an existing emotional bond with the child and fewer children in group homes and institutions while also providing additional funding to improve the educational outcomes of foster youth and support youth who age out of care without a permanent caregiver.
Guarantees Adequate and Stable Funding for the Indian Health Service (IHS). The Budget significantly increases IHS’s funding over time, and shifts it from discretionary to mandatory funding. For the first year of the proposal, the Budget includes $9.1 billion in mandatory funding, an increase of $2.9 billion above 2021. After that, IHS funding would automatically grow to keep pace with healthcare costs and population growth and gradually close longstanding service and facility shortfalls. Providing IHS stable and predictable funding will improve access to high quality healthcare, rectify historical underfunding of the Indian Health system, eliminate existing facilities backlogs, address health inequities, and modernize IHS’ electronic health record system.
Protects Our Elections and the Right to Vote. As our democracy faces threats across the country—and to provide state and local election officials with a predictable funding stream for critical capital investments and increased staffing and services—the Budget proposes $10 billion in new elections assistance funding to be allocated over ten years. The Budget also proposes to fund an expansion of U.S. Postal Service delivery capacity in underserved areas and support for vote-by-mail, including making ballots postage-free and reducing the cost of other election-related mail for jurisdictions and voters.
NYSGovernor Kathy Hochul: “This is a moment of a great possibility, a once-in-a-generation chance to reconsider what is possible for our state. And this really is the beginning of New York’s next great comeback. I declared a New Era for New York, and it continues today.”
This is a highlighted transcript of New York State Governor Kathy Hochul’s budget message:
Two weeks ago in my State of the State speech, I proposed a whole new era for New York. One in which my administration, my fellow statewide elected officials and the legislature will finally work together to deliver for New Yorkers. But before I deliver our positive budget trends, let’s look at another trend, which is increasingly positive.
Today, positive COVID cases are at 22,312 down 75% from our peak of 90,132 on January 7th, less than two weeks ago and that’s incredible. And cases dropped 34% in the last seven days while cases across the rest of the United States went down only by five percent. Our positivity rate is down to 12.48%, nearly an 11% drop from the peak on January 2nd and hospitalizations continue to trend downward as well.
So we hope to close the books on this winter surge soon. So we can turn the page and open the book on our 2023 budget outlook and focus on the post pandemic future. As I said, since I took office 147 days ago, my top priority is to confront this pandemic head-on and to save lives, protect the health of New Yorkers and protect the health of our economy.
But we also must pass a bold agenda that’ll do more than just help us recover from this crisis. We need to embrace this moment of possibility and use it to redefine New York’s destiny. How? First by rebuilding our healthcare and teacher workforces, providing tax relief to those who need it the most, speeding up economic growth and creating good paying middle-class jobs, strengthening our infrastructure and confronting climate change, securing public safety and protecting our communities, making housing more affordable and ensuring every New Yorker has a roof over their head, enacting bold reforms that will restore trust in state and we’re changing the culture and creating workplaces that are free of harassment.
This is an extraordinary time and it will be met with extraordinary solutions. The policies I laid out two weeks ago are ambitious, but as I said, just as importantly, they’re realistic and achievable. And we’re in a position to fully fund them by making historic investment, like record aid to education, the biggest capital plan for infrastructure that our state has ever seen, and a groundbreaking program to rebuild the healthcare industry. But we’re also being smart and responsible recognizing that we need to fund our reserves to historic levels as well. So I’m proud to say that today we are submitting a balanced executive budget for fiscal year 2023 to the legislature.
Our state is in a strong financial position due to a combination of factors, increased tax receipts, a thriving stock market, and an influx of federal aid through the American rescue plan and the infrastructure act, some of which have already been received, some with more still to come. Looking forward, our base level forecasts are equally optimistic.
We predict we’ll be able to continue to balance the budget and be able to make these types of bold but necessary investments all the way through fiscal year 2027. And this is a big change from where we were just this time last year. When the division of budget projected deficits totaling $17 billion during that same timeframe.
So this is a once in a generation opportunity to make thoughtful, purpose-driven investments in our state and in our people that will pay dividends for decades. And that’s exactly what my budget will do.
But this is also about meeting New Yorkers where they are now, frustrated by a persistent pandemic, anxious about rising prices for everything from milk to gas to housing, worried about whether or not their paycheck will be enough to make ends meet and stressed, most of all, about their kids, the quality of their education, affordability of childcare, and even thoughts about what their future will be in a world beset by climate change.
So New Yorkers, this budget is for you and about you. And how I propose to use the entirety of our $216 billion budget to directly address the immediate needs of New Yorkers and at the same time positively impact people’s lives and livelihoods for decades to come first. First, we’ll respond to this pandemic head-on by following the science and the data, and doing whatever it takes to ensure that our recovery is swift and far-reaching.
That’s why we’ve set aside $2 billion for pandemic recovery initiatives. I’ll work with the legislature to identify the most impactful use of these funds in the short term, whether that’s held for struggling, small landlords and their tenants, or the hardest hurt industries and workers, or for other purposes.
Now let’s talk about putting more money back into people’s pockets. Rather than raise taxes, this is about tax relief. Accelerating a $1.2 billion tax cut originally scheduled to take effect between 2023 and 2025. This [means] way more than 6 million middle-class taxpayers getting their much-needed money a lot sooner.
At a time when inflation is robbing families of long awaited gains and income, and recognizing that property taxes are still too high, we will provide a $2 billion property tax rebate to more than 2 million middle-class homeowners. And we’re delivering $250 million in tax credits for small businesses to help them pay for COVID related expenses.
In addition to that, we’re having new support for farms and other small businesses, hit so hard by this pandemic. We need to help them not just survive, but to thrive. And using the unprecedented fusion of money from our leaders in Washington, starting with President Joe Biden, New York will see the largest investment in our state infrastructure ever through a $32.8 billion capital plan.
The boldness I outlined in my State of the State address will be realized. I’m putting the dollars behind making long-term overdo repairs to our roads, and our bridges, building new transit options, modernizing existing transit and hubs and revitalizing communities. I’ve also declared war on potholes. So here’s the first shot across the bow: a $1 billion plan called Operation POP: Pave Our Potholes, and this strategy takes us from potholes to not-holes. For me, infrastructure is a quality of life issue. It’s about creating connections, connecting neighborhoods, connecting people to jobs, connecting people to their family members and loved ones. And we’ll finally be able to strengthen those bonds across our state, using cash rather than borrowing money.So future generations are not hamstrung by the commitments we make today.
One way we’ll do that is by reconnecting neighborhoods that were severed by asphalt highways, and these all disproportionally impacted communities of color, like the Kensington Expressway in Buffalo, I-81 in Syracuse, the Inner Loop in Rochester, and the Cross Bronx Expressway.
And one hard lesson we learned about what happens when there’s a lack of investment is how our healthcare system crumbled under the stress of the pandemic.
And that’s why we’re making up for lost time and positioning the state to have better footing going forward with the largest investment in healthcare in State history, $10 billion. One of our shared values as New Yorkers is that everyone deserves the dignity of access to quality health care, especially during a public health crisis. In my State of the State speech, I promise to start by rebuilding our healthcare workforce. They’re the heroes of this pandemic, so let’s stop talking about the debt we owe them, and actually pay them what they deserve. And that includes more than $1 billion in bonuses. We’ll also work to rebuild our medical facilities, nursing homes, and hospitals, which have been crushed by this pandemic, through a $1.6 billion capital program to help them make much needed upgrades.
We’re also going to invest in education, strengthening our teacher workforce and supporting students’ mental health. We’ll provide more than $31 billion in aid for our schools. Continuing our commitment to fully fund education and foundation aid. And that brings us to the highest level the State has invested in education ever. And this should be used to continue expanding our pre-K program to school districts all across the state, and for much needed after school programs. Because working parents need all the support they can get. We’re also increasing ourinvestments in childcare, to more than $1.4 billion. This will make 400,000 more families eligible for childcare subsidies, and we’ll invest more in childcare workers as well.
To boost our economy, we’ll make significant investments in our workforce development programs, support for small businesses, and the revitalization of downtowns across the state. So we can be the most worker friendly and business friendly state in the nation, with all the different engines of our economy firing in all cylinders. And we’ll ensure that the new businesses we’re going to draw to New York will have access to a well-trained and educated workforce. And how we do that is by making our statewide higher education system, the very best in the entire nation.
We’re going to increase operational support for SUNY and CUNY, the engines of social mobility, and we’re adding $1.5 billion over the next five years. And we’re investing $150 million into the expansion of the tuition assistance program, so it’s available to part-time students giving them a chance, which means more students won’t have to choose between work and getting their degree. We’ll also make that assistance available to people in prison as part of our jails-to-jobs initiative.
And we’re going to confront that climate crisis with the urgency that is required. That’s why my budget includes $4 billion for the landmark Clean Water Clean Air and Green Jobs Environmental Bond act, in the largest ever investment in the Environmental Protection Fund. We must speed up our transition to clean energy and you are we’ll lead the way by making a nation-leading $500 million investment in offshore wind energy.
And we have to confront the housing affordability crisis. And one way we’ll do that is by advancing a new $25 billion five-year housing plan to create and preserve 100,000 affordable homes, including 10,000 homes with supportive services for vulnerable populations. And everyone deserves to feel safe on the streets, in schools, in their homes, and in their communities, and during their commutes, and in too many communities, they just don’t. So we’re going to prioritize public safety. Starting with $224 million investment into programs that will reduced gun violence and other programs to help children in our streets, and will confront the other public health crisis that is taking far too many New Yorkers lives and will take it on head-on because that is something that has destroyed the lives of too many of our loved ones.
So we’re going to make a $400 million dollar multi-year investment in opioid and substance abuse addiction service. Of course, this is just a small sampling of everything that’s included in the 2023 budget. But the bottom line is that we’ll make smart investments to ensure we not only recover from this pandemic, but emerge from it stronger than ever before.
And I want to be very clear. We’re going to do it by taking a fiscally responsible approach because we know that the federal funds will eventually run out. And that’s why we’re not banking on them for the future. We’re not creating recurring expenses or new programs we can’t pay for. So for the first time ever, with smart planning, New York will have no out year gaps.
All these commitments are either one-time expenditures or are supported by the expectation of a reasonable growth in revenue as projected by our division of budget. So we have the means to respond to this historic moment with a historic level of funding. And what we have achieved with the blueprint I’m printing today is both a plan that is socially responsible and fiscally prudent. And as I learned working on 14 balanced municipal budgets with much smaller numbers, but with the same philosophy, you have to prepare for the rainy days, even when there’s not a cloud in the sky, because of the rain – or where I come from, the snow, eventually does fall.
So we’re prepared for the downturns as well. Just remember where we were two years ago today, and suddenly how our world changed forever. As we assess the risks, we do have concerns about long-term economic erosion caused by the pandemic and the impact of inflation and even – hate to say it but possible resurgence of COVID. We just can’t predict the future. But I want to share New Yorkers that we are prepared.
And that’s why we’re making these investments with those worst case scenario calculations built in. And committing resources every year until the state has reserves of at least 15% of operating spending. That’s what the experts recommend, and it’s what we’re going to do. For the future leaders, for future generations, and for the future health of our state. But we’re not letting this once in a generation moment pass us by. It’s not simply enough to return to our pre pandemic world in way of life. That would be timid and unimaginative, and it would fail to honor our history and the legacy of the daring, visionary New Yorkers who came before us.
Leaders like FDR, who weathered some of the most intense storms the world has ever seen, always while keeping one eye fixed on the horizon, planning for the day when the clouds would part. And it wasn’t through sheer luck that the policies he passed during those crises made an immediate difference in the short-term and a generational impact in the long-term. Through careful and strategic planning. And he embraced those times of crisis for what they were, a chance to re-imagine the future while correcting the mistakes of the past. And we must now have the same foresight and resolve to do the same because this pandemic did not create all the problems we’re facing today.
It simply forced us to hold up a mirror and see the cracks in our society that have been too easy to ignore before. We cannot allow this virus to grip us so tightly that it constrains us from looking to the future or prevents us from mending those cracks. Since its founding, our state has been the home of the dreamers and the doers from all over the world who came here in pursuit of opportunity and a better life. But today for too many New Yorkers, the American dream is just that, a dream. And that has been even more true as a result of this pandemic.
As I said in my State of the State speech, it’s time for a better, fairer, and more inclusive version. And I’m calling it the New York dream. And by implementing the agenda I proposed two weeks ago, we can make it a reality. And this is with smart, strategic and a forward thinking plan, we will. This is a moment of great possibility. A once in a generation chance to reconsider what is possible for our state. And this really is the beginning of New York’s next great comeback.
I declared a new era for New York and it continues today. So New Yorkers, this budget’s for you.
The White House provided this fact sheet of “Top 10 Programs” in the Infrastructure Investment and Jobs Act:
Weatherization: Two-thirds of low-income U.S. households have high energy burdens, meaning they spend more than 6 percent of their income on utility bills. The Bipartisan Infrastructure Deal will invest a historic $3.5 billion in the Weatherization Assistance Program, reducing energy costs for more than 700,000 low-income households by increasing the energy efficiency of their homes, while ensuring health and safety and creating jobs.
Wildfires: One estimate found that 4.5 million homes in the United States are at risk of wildfire. The bill invests $8 billion in wildfire risk reduction by providing funding for community wildfire defense grants, mechanical thinning, controlled burns, the Collaborative Forest Restoration Program, and firefighting resources.
Floods: The cost of flood damage was approximately $17 billion annually in the last decade, and is expected to increase significantly due climate-related extreme weather and rising sea levels. The bill invests $12 billion in flood mitigation, including funding for FEMA flood mitigation grants, making infrastructure investments to increase coastal resilience, and improving mapping and data so that households and businesses can better protect themselves from future flood events.
Brownfields and superfund: 26% of Black Americans and 29% of Hispanic Americans live within 3 miles of a Superfund site, a higher percentage than for Americans overall. Proximity to a Superfund site can lead to elevated levels of lead in children’s blood. The deal invests $5 billion in addressing legacy pollution at these sites, creating good-paying union jobs and advancing economic and environmental justice.
Natural gas wells and coal mines: In thousands of rural and urban communities around the country, hundreds of thousands of former industrial and energy sites, including orphan wells and abandoned land mines, are now idle – sources of blight and pollution. The deal invests $16 billion in creating good-paying union jobs capping these wells and mines.
Pipeline safety: More than 20,000 miles of cast iron pipelines—much of which was installed in the 1800’s and early 1900’s—transports natural gas underneath communities in the U.S. This infrastructure, which is prone to leaks and fugitive methane emissions, is mostly located in disadvantaged areas including older cities like Philadelphia, Detroit, Baltimore, New York, and St. Louis. Since 2010, the U.S. has experienced thousands of pipeline incidents, resulting in hundreds of injuries and deaths, tens of thousands of evacuations, and more than $4 billion in damages. The bill includes $1 billion for the “Natural Gas Distribution Infrastructure Safety and Modernization Grant Program” to modernize natural gas distribution pipelines, reducing incidents and fatalities, and avoiding economic losses.
Battery manufacturing: Today, the U.S. relies heavily on importing advanced battery components from abroad, exposing the nation to supply chain vulnerabilities that threaten to disrupt the availability and cost of these technologies, as well as the workforce that manufactures them. The Bipartisan Infrastructure Deal will invest $6B to spur U.S. advanced battery processing, manufacturing, and recycling, creating good-paying jobs and enabling American manufacturers to win the 21st century.
Safe Streets: Over 36,000 Americans died in motor vehicle crashes in 2019, including over 6,200 pedestrians and about 850 bicyclists. The United States has one of the highest traffic fatality rates in the industrialized world, double the rate in Canada and quadruple that in Europe. The Bipartisan Infrastructure Deal includes $5 billion for a first-of-its kind “Safe Streets for All” program to fund state and local “vision zero” plans and other improvements to reduce crashes and fatalities, especially for the most vulnerable of roadways users.
Transit station ADA program: More than 30 years after the passage of the Americans with Disabilities Act, nearly 1,000 transit stations are still not fully accessible, which prevents millions of older Americans and individuals with disabilities from fully enjoying public transit. The Bipartisan Infrastructure Deal includes a total of $2 billion for transit ADA, including $1.75 billion for All Stations Accessibility and $250 million for Enhanced Mobility for Seniors and Individuals with Disabilities. These programs will remove barriers to transportation service and expand transportation mobility options for Americans across the country.
Cybersecurity: The recent cybersecurity breaches of federal government data systems, critical infrastructure, and American businesses underscore the importance and urgency of strengthening U.S. cybersecurity capabilities. The bipartisan Infrastructure Investment and Jobs Act will invest about $2 billion to modernize and secure federal, state, and local IT and networks; protect critical infrastructure and utilities; and support public or private entities as they respond to and recover from significant cyberattacks and breaches.
On July 28, 2021, President Joe Biden and the bipartisan group announced agreement on the details of a once-in-a-generation investment in our infrastructure, which will be taken up in the Senate for consideration. In total, the deal includes $550 billion in new federal investment in America’s infrastructure, according to a fact sheet from the White House , which details what is included:
The Bipartisan Infrastructure Deal will grow the economy, enhance our competitiveness, create good jobs, and make our economy more sustainable, resilient, and just.
The deal will create good-paying, union jobs. With the President’s Build Back Better Agenda, these investments will add, on average, around 2 million jobs per year over the course of the decade, while accelerating America’s path to full employment and increasing labor force participation.
President Biden believes that we must invest in our country and in our people by creating good-paying union jobs, tackling the climate crisis, and growing the economy sustainably and equitably for decades to come. The Bipartisan Infrastructure Deal will deliver progress towards those objectives for working families across the country. The Bipartisan Infrastructure Deal:
Makes the largest federal investment in public transit ever
Makes the largest federal investment in passenger rail since the creation of Amtrak
Makes the single largest dedicated bridge investment since the construction of the interstate highway system
Makes the largest investment in clean drinking water and waste water infrastructure in American history, delivering clean water to millions of families
Ensures every American has access to reliable high-speed internet
Helps us tackle the climate crisis by making the largest investment in clean energy transmission and EV infrastructure in history; electrifying thousands of school and transit buses across the country; and creating a new Grid Development Authority to build a clean, 21st century electric grid
The President promised to work across the aisle to deliver results for working families. He believes demonstrating that democracies can deliver is a critical challenge for his presidency. Today’s agreement shows that we can come together to position American workers, farmers, and businesses to compete and win in the 21st century.
Roads, Bridges, and Major Projects
One in five miles, or 173,000 total miles, of our highways and major roads and 45,000 bridges are in poor condition. Bridges in poor condition pose heightened challenges in rural communities, which often may rely on a single bridge for the passage of emergency service vehicles. The Bipartisan Infrastructure Deal will invest $110 billion of new funds for roads, bridges, and major projects, and reauthorize the surface transportation program for the next five years building on bipartisan surface transportation reauthorization bills passed out of committee earlier this year. This investment will repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users, including cyclists and pedestrians. The bill includes a total of $40 billion of new funding for bridge repair, replacement, and rehabilitation, which is the single largest dedicated bridge investment since the construction of the interstate highway system. The bill also includes a total of $17.5 billion for major projects that are too large or complex for traditional funding programs but will deliver significant economic benefits to communities.
America has one of the highest road fatality rates in the industrialized world. The deal invests $11 billion in transportation safety programs, including a new Safe Streets for All program to help states and localities reduce crashes and fatalities in their communities, especially for cyclists and pedestrians. It will more than double funding directed to programs that improve the safety of people and vehicles in our transportation system, including highway safety, truck safety, and pipeline and hazardous materials safety.
America’s transit infrastructure is inadequate – with a multibillion-dollar repair backlog, representing more than 24,000 buses, 5,000 rail cars, 200 stations, and thousands of miles of track, signals, and power systems in need of replacement. The deal invests $39 billion of new investment to modernize transit, and improve accessibility for the elderly and people with disabilities, in addition to continuing the existing transit programs for five years as part of surface transportation reauthorization. This is the largest Federal investment in public transit in history, and devotes a larger share of funds from surface transportation reauthorization to transit in the history of the programs. It will repair and upgrade aging infrastructure, modernize bus and rail fleets, make stations accessible to all users, and bring transit service to new communities. It will replace thousands of transit vehicles, including buses, with clean, zero emission vehicles. And, it will benefit communities of color since these households are twice as likely to take public transportation and many of these communities lack sufficient public transit options.
Passenger and Freight Rail
Unlike highways and transit, rail lacks a multi-year funding stream to address deferred maintenance, enhance existing corridors, and build new lines in high-potential locations. The deal positions Amtrak and rail to play a central role in our transportation and economic future. This is the largest investment in passenger rail since the creation of Amtrak 50 years ago. The deal invests $66 billion in rail to eliminate the Amtrak maintenance backlog, modernize the Northeast Corridor, and bring world-class rail service to areas outside the northeast and mid-Atlantic. Within these totals, $22 million would be provided as grants to Amtrak, $24 billion as federal-state partnership grants for Northeast Corridor modernization, $12 billion for partnership grants for intercity rail service, including high-speed rail, $5 billion for rail improvement and safety grants, and $3 billion for grade crossing safety improvements.
U.S. market share of plug-in electric vehicle (EV) sales is only one-third the size of the Chinese EV market. The President believes that must change. The bill invests $7.5 billion to build out a national network of EV chargers. This is the first-ever national investment in EV charging infrastructure in the United States and is a critical element in the Biden-Harris Administration’s plan to accelerate the adoption of EVs to address the climate crisis and support domestic manufacturing jobs. The bill will provide funding for deployment of EV chargers along highway corridors to facilitate long-distance travel and within communities to provide convenient charging where people live, work, and shop. Federal funding will have a particular focus on rural, disadvantaged, and hard-to-reach communities.
American school buses play a critical role in expanding access to education, but they are also a significant source of pollution. The deal will deliver thousands of electric school buses nationwide, including in rural communities, helping school districts across the country buy clean, American-made, zero emission buses, and replace the yellow school bus fleet for America’s children. The deal invests $2.5 billion in zero emission buses, $2.5 billion in low emission buses, and $2.5 billion for ferries. These investments will drive demand for American-made batteries and vehicles, creating jobs and supporting domestic manufacturing, while also removing diesel buses from some of our most vulnerable communities. In addition, they will help the more than 25 million children and thousands of bus drivers who breathe polluted air on their rides to and from school. Diesel air pollution is linked to asthma and other health problems that hurt our communities and cause students to miss school, particularly in communities of color and Tribal communities.
Too often, past transportation investments divided communities – like the Claiborne Expressway in New Orleans or I-81 in Syracuse – or it left out the people most in need of affordable transportation options. In particular, significant portions of the interstate highway system were built through Black neighborhoods. The deal creates a first-ever program to reconnect communities divided by transportation infrastructure. The program will fund planning, design, demolition, and reconstruction of street grids, parks, or other infrastructure through $1 billion of dedicated funding.
Airports, Ports, and Waterways
The United States built modern aviation, but our airports lag far behind our competitors. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide. Our ports and waterways need repair and reimagination too. The bill invests $17 billion in port infrastructure and $25 billion in airports to address repair and maintenance backlogs, reduce congestion and emissions near ports and airports, and drive electrification and other low-carbon technologies. Modern, resilient, and sustainable port, airport, and freight infrastructure will support U.S. competitiveness by removing bottlenecks and expediting commerce and reduce the environmental impact on neighboring communities.
Resilience and Western Water Infrastructure
Millions of Americans feel the effects of climate change each year when their roads wash out, airport power goes down, or schools get flooded. Last year alone, the United States faced 22 extreme weather and climate-related disaster events with losses exceeding $1 billion each – a cumulative price tag of nearly $100 billion. People of color are more likely to live in areas most vulnerable to flooding and other climate change-related weather events. The deal makes our communities safer and our infrastructure more resilient to the impacts of climate change and cyber attacks, with an investment of over $50 billion. This includes funds to protect against droughts and floods, in addition to a major investment in weatherization. The bill is the largest investment in the resilience of physical and natural systems in American history.
Clean Drinking Water
Currently, up to 10 million American households and 400,000 schools and child care centers lack safe drinking water. The deal’s $55 billion investment represents the largest investment in clean drinking water in American history, including dedicated funding to replace lead service lines and the dangerous chemical PFAS (per- and polyfluoroalkyl). It will replace all of the nation’s lead pipes and service lines. From rural towns to struggling cities, the deal invests in water infrastructure across America, including in Tribal Nations and disadvantaged communities that need it most.
Broadband internet is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected. Yet, by one definition, more than 30 million Americans live in areas where there is no broadband infrastructure that provides minimally acceptable speeds – a particular problem in rural communities throughout the country. The deal’s $65 billion investment ensures every American has access to reliable high-speed internet with an historic investment in broadband infrastructure deployment, just as the federal government made a historic effort to provide electricity to every American nearly one hundred years ago.
The bill will also help lower prices for internet service by requiring funding recipients to offer a low-cost affordable plan, by creating price transparency and helping families comparison shop, and by boosting competition in areas where existing providers aren’t providing adequate service. It will also help close the digital divide by passing the Digital Equity Act, ending digital redlining, creating a permanent program to help more low-income households access the internet, and establishing a new program to help low-income households obtain the devices required to access the internet.
In thousands of rural and urban communities around the country, hundreds of thousands of former industrial and energy sites are now idle – sources of blight and pollution. 26% of Black Americans and 29% of Hispanic Americans live within 3 miles of a Superfund site, a higher percentage than for Americans overall. Proximity to a Superfund site can lead to elevated levels of lead in children’s blood. The deal invests $21 billion in environmental remediation, making the largest investment in addressing the legacy pollution that harms the public health of communities and neighborhoods in American history, creating good-paying union jobs in hard-hit energy communities and advancing economic and environmental justice. The bill includes funds to clean up superfund and brownfield sites, reclaim abandoned mine land and cap orphaned gas wells.
As the recent Texas power outages demonstrated, our aging electric grid needs urgent modernization. A Department of Energy study found that power outages cost the U.S. economy up to $70 billion annually. The deal’s $73 billion investment is the single largest investment in clean energy transmission in American history. It upgrades our power infrastructure, including by building thousands of miles of new, resilient transmission lines to facilitate the expansion of renewable energy. It creates a new Grid Deployment Authority, invests in research and development for advanced transmission and electricity distribution technologies, and promotes smart grid technologies that deliver flexibility and resilience. It invests in demonstration projects and research hubs for next generation technologies like advanced nuclear reactors, carbon capture, and clean hydrogen.
In the years ahead, the deal, which will generate significant economic benefits, and it is financed through a combination of redirecting unspent emergency relief funds, targeted corporate user fees, strengthening tax enforcement when it comes to crypto currencies, and other bipartisan measures, in addition to the revenue generated from higher economic growth as a result of the investments.
The Biden Administration has recognized that the availability of affordable child care is the essential grease to the economy’s gears. The White House has issued a fact sheet detailing $39 billion in American Rescue Plan funding “to rescue the child care industry so the economy can recover”:
Today, the Biden Administration is announcing the release of $39 billion of American Rescue Plan funds to states, territories, and tribes to address the child care crisis caused by COVID-19. These funds will help early childhood educators and family child care providers keep their doors open. These providers have been on the frontlines caring for the children of essential workers and support parents, especially mothers, who want to get back to work. These funds are a critical step to pave the way for a strong economic recovery and a more equitable future.
Over the past 40 years, as more women entered the labor force and brought home larger paychecks, they have driven 91 percent of the income gains experienced by middle-class families. But, since the start of the COVID-19 public health emergency, roughly 2 million women have left the labor force, disproportionately due to caregiving needs and undoing decades of progress improving women’s labor force participation rate. Even as many fathers have returned to work, mothers, especially those without a four-year college degree, have not done so at similar rates. As a result, the gender earnings gap is predicted to increase by 5 percentage points in this recession, hurting our families and economy. As women work to regain employment, families with young children, and especially families of color where mothers are more likely to be sole or primary breadwinners, may face financial burdens for years to come. Parents need access to safe, quality child care to get back to work.
At the same time, early childhood and child care providers – nearly all small businesses, overwhelmingly owned by women and disproportionately owned by people of color – have been hit hard by the pandemic and are struggling to continue to provide essential services. Providers have faced decreasing revenues due to lower enrollment while also shouldering higher expenses – 47 percent higher by one estimate – for personal protective equipment (PPE), sanitation, additional staff, and other needs to operate safely. They were already operating on extremely thin margins before the pandemic. According to one survey, as of December, about one in four child care providers open at the start of the pandemic were closed, hindering access to care, especially for families of color. These closures exacerbated access challenges that existed before the pandemic when half of all Americans lived in a child care desert. Child care providers who have stayed open have gone to enormous lengths to do so: two in five providers report taking on debt for their programs using personal credit cards to pay for increased costs and three in five work in programs that have reduced expenses through layoffs, furloughs, or pay cuts. One in six child care jobs, generally held by women of color, still haven’t come back – much more than the one in twenty jobs that have been lost throughout the economy.
That is why President Biden prioritized addressing the child care crisis caused by COVID-19 as part of the American Rescue Plan. Today’s $39 billion funding release will provide a lifeline to hundreds of thousands of childcare providers and early childhood educators, provide a safe and healthy learning environment for more than 5 million children, and help parents, especially mothers, get back to work. States, tribes, and territories can use these funds to:
Help hundreds of thousands child care centers and family child care providers, which are mostly very small businesses, stay open or reopen including by making rent or mortgage payments, helping with utility or insurance bills, maintaining or improving facilities, and paying off debt incurred during the pandemic.
Support providers with funds to enable safe and healthy learning environments for more than 5 million of children, including by purchasing masks, implementing physical distancing, improving ventilation, and cleaning consistently, so both centers and family providers can comply with CDC’s Guidance for Operating Child Care Programs during COVID-19. This funding complements the President’s efforts to prioritize early childhood educators for vaccination – child care workers remain eligible for vaccinations and nearly 80 percent of the educators who work with children from birth to 12th grade received at least their first shot of a COVID-19 vaccine during the month of March. Providers can also use these funds to support the mental health of both children and early educators so that they can meet any social and emotional needs exacerbated by the pandemic as centers reopen and parents go back to work.
Keep child care workers, disproportionately women of color and immigrants, on the payroll and rehire those who have been laid off. Child care workers are essential to meeting the child care needs of families and providing quality are to children, but providers have been forced to lay off, furlough, or reduce pay of workers to survive – exacerbating issues faced by a workforce that has long faced low pay and high turnover. Providers can use these funds to keep workers on payroll, rehire laid off workers and recruit new workers, and increase the pay and benefits of child care workers and family child care providers.
Provide families with the greatest need access to affordable care. States, tribes, and territories can provide direct subsidies to more than 800,000 hard-pressed families earning below 85% state median income and families performing essential work, to help cover the cost of care.
Start to lay the foundation for a stronger child care system, so families can access the high-quality care they need. As states, tribes, and territories address the immediate crisis, they can also make a down payment on President Biden’s commitment to a stronger, more equitable early childhood education system. For example, states, tribes, and territories can set reimbursement rates at a level that will help children receive high-quality care and can increase access to care, including on the evenings and weekends when many essential workers need care.
The American Rescue Plan also included an historic increase in support for child care through the tax code, helping millions of working families afford needed care. Last year, a family claiming a Child and Dependent Care Tax Credit (CDCTC) got less than $700 on average towards the cost of care, and many low-income working families often got nothing. Thanks to the historic expansion of the CDCTC in the American Recovery Plan, a median income family with two kids under age 13 will receive up to $8,000 towards their child care expenses when they file taxes for 2021, compared with a maximum of $1,200 previously.
In 2020, the CDCTC provides a tax credit typically capped at $600 for one child, for families with at least $3,000 in eligible expenses, and capped at $1,200 for two children or more for families with at least $6,000 in child care expenses.
Under the American Rescue Plan’s expansion of the CDCTC, all families with incomes below $125,000 will save up to half the cost of their eligible child care expenses, getting back up to $4,000 for one child and $8,000 for two or more children, when they file taxes for 2021. And, families making between $125,000 and $438,000 can receive a partial credit.
And for the first time, the CDCTC will be fully refundable, making the credit fairer by allowing low-income working families to receive the full value of the credit towards their eligible child care expenses regardless of how much they owe on their 2021 taxes.
In the coming weeks, the administration will release:
Guidance to states, tribes, and territories, while also providing technical assistance like webinars and peer-to-peer learning opportunities, to support states, tribes, and territories as they make historic investments in saving and rebuilding their child care systems, provide high-quality care to children, and get families back to work.
Frequently Asked Questions on the Child and Dependent Care Tax Credit to equip parents with the information they need to claim the credit next year.
Help from the American Rescue Plan is coming to states, territories, and tribes. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning environments, keep workers on payroll, and provide mental health supports for educators and children, and (2) $15 billion in more flexible funding for states to make child care more affordable for more families, increase access to high-quality care for families receiving subsidies, increase compensation for early childhood workers, and meet other care needs in their states. A breakdown by state, tribe and territory is below.
Governor Andrew M. Cuomo called on Congress to renew and expand federal support programs for unemployed Americans — many of which have expired or will end just days after Christmas. The programs provide critical benefits for millions of American families that have faced unemployment as a result of the ongoing COVID-19 pandemic, including supplemental benefits for individuals and support for local and state governments. The Governor sent a letter to Congressional leaders urging them to act quickly as states across the country face another surge of infections, hospitalizations, and deaths while millions of Americans remain unemployed.
“The pandemic has not just impacted Americans’ health — it has also created an unprecedented economic crisis. As we enter the holiday season, and as states once again enact stronger measures to stop COVID, critical federal unemployment benefits are about to expire. Inaction from Washington is putting millions of Americans’ financial security at risk,” Governor Cuomo said.”Congress moved decisively this spring to address the economic impacts of the pandemic and should once again take action before the calendar year ends to bring badly needed support to millions of struggling Americans.”
Separately, Cuomo, who is also National Governors Association Chairman, and Arkansas Governor and NGA Vice Chairman Asa Hutchinson issued a statement regarding ongoing negotiations over a new coronavirus relief bill:
“Even as COVID-19 vaccine trials show remarkable results and the pandemic finish line is in sight, the danger the virus poses has never been greater. Today our country is seeing record-high cases, hospitalizations and deaths — every single state has been affected.
“It is time for Washington to step up and deliver desperately needed relief for their constituents. Governors are heartened that congressional leaders on both sides of the aisle and in both chambers are now talking with each other to find a way forward. We encourage leadership to stay at the bargaining table and work out a deal that delivers the critical relief to the American people.
“As an interim measure to address states immediate and pressing needs, we support the bipartisan framework proposed by Senator Joe Manchin, Senator Bill Cassidy and a bipartisan group of their colleagues as a response that would bring meaningful relief to those who are struggling; situate states to quickly, effectively and equitably implement their vaccination plans; and prime the economy to allow for a faster rebound.
“Governors have been on the front lines since the beginning of the pandemic, procuring lifesaving medical and personal protective equipment, establishing field hospitals, and providing economic relief to small businesses and workers. But this is a national crisis, cutting across geographic, economic and demographic lines, and it demands a national, bipartisan solution. Congress should not leave Washington for the holiday recess without enacting a much-needed COVID relief package. We look forward to working with Congress and the new Administration in the new year on a more comprehensive COVID relief package.”
Since the beginning of the COVID-19 crisis, New York State has paid more than $55 billion in unemployment benefits to 3.8 million New Yorkers — which represents more than 26 typical years’ worth of benefits. Nationwide, more than 20 million Americans are currently receiving unemployment benefits, including 12 million covered by programs that will expire on December 31, 2020. In New York, that includes 1.2 million current claims from New Yorkers receiving Pandemic Unemployment Assistance, which provides benefits for freelancers, self-employed workers, and others who do not typically qualify for traditional unemployment benefits, and 682,000 claims from individuals who are receiving 13 additional weeks of benefits under the Pandemic Emergency Unemployment Compensation program after exhausting the 26 weeks of traditional benefits.
Here is Governor Cuomo’s full letter detailing the aid that is requested:
As you are well aware, the coronavirus has continued to spread across the country, with the United States entering what appears to be another surge of infections this fall. While disturbing, this increase is not surprising — experts told us that as temperatures fell, cases would increase, and those predictions have unfortunately come true.
The physical toll of the pandemic is well known: 12 million Americans have been infected and more than 250,000 have lost their lives.
But the pandemic has not just impacted Americans’ health — it has also created an unprecedented economic crisis with unheard of levels of unemployment across the nation. Since March, more than 68 million Americans have filed unemployment claims, representing over 42 percent of the nation’s workforce. Last week, the number of newly filed claims nationwide grew by 31,000, representing the first week-over-week increase after four weeks of decreasing claims.
Unlike the federal government’s response to the virus itself, Congress moved decisively this spring to address the economic impacts of the pandemic — supplying Americans with federally-funded stimulus checks, supplemental unemployment benefits, and benefits for freelancers, the self-employed, and others who are not typically covered by traditional unemployment insurance.
However, as we enter the holiday season — and as states once again enact stronger measures to stop the surge in cases, hospitalizations, and deaths — Washington’s inaction is putting millions of Americans’ financial security at risk.
When the CARES Act was passed in March, roughly 10 million Americans had filed for unemployment benefits during the pandemic — today, that number has increased by nearly 600%. At the time, the nation had only faced two weeks with unemployment claims above the pre-pandemic high of 695,000. Now, we have surpassed that level for 35 weeks straight.
Yet despite this worsening economic picture, many critical support programs that were put in place earlier this year have already expired and the few remaining ones are set to expire just days after Christmas. This is simply unacceptable and must be rectified.
The Senate and House must work to renew and expand federal unemployment benefits for Americans while supporting the state governments that are implementing these programs and disbursing the benefits.
The following programs should be extended or renewed through the end of the federal Fiscal Year 2021:
Pandemic Unemployment Assistance (PUA)— This program, which is set to expire on December 31, 2020, allows freelancers, self-employed individuals, and others who are not typically eligible for unemployment insurance to receive 46 weeks of federal benefits. As of the latest US DOL data, nearly 8.7 million Americans are currently receiving benefits under PUA.
Pandemic Emergency Unemployment Compensation (PEUC)— This program, which is also set to expire on December 31, 2020, provides an additional 13 weeks of federally-funded unemployment benefits to Americans who have exhausted state unemployment insurance. As of the latest US DOL data, nearly 4.4 million Americans are currently receiving benefits under PEUC.
Federal Pandemic Unemployment Compensation (FPUC)— Created by the CARES Act, this program provided federal supplemental benefits of $600 per week to all unemployed Americans. After expiring in late July, this program was temporarily replaced with the Lost Wages Assistance program, which failed to adequately address the continuing needs of the American public, while causing more administrative work for states.
Federal Support for Shared Work— Shared work programs allow employers to keep staff partially-employed while still cutting costs. Rather than laying off their staff, a business is able to reduce all workers’ hours, with unemployment benefits replacing some or all of their lost wages. To encourage use of these programs, the federal government fully funded states’ shared work programs, but this support is set to expire on December 31, 2020.
Reimbursements for Local Government, Non-profit, and Tribal Employers— Recognizing the severe impact of the coronavirus pandemic on local governments, non-profit organizations, and tribal nations, the federal government agreed to reimburse half of unemployment benefits these employers paid out. That support is due to expire on December 31, 2020, putting further strain on organizations that are already struggling to stay afloat and provide needed services during this crisis.
Support for State Unemployment Insurance Trust Funds— Due to the unprecedented surge in unemployment insurance claims, states across the country have exhausted their unemployment insurance trust funds. Earlier this year, the Federal government allowed states to borrow to replenish their trust funds interest-free. Starting next year, those loans will begin accruing interest — even as unemployment levels remain at critically high levels. All states should be allowed to continue borrowing for their unemployment insurance trust funds without accruing interest next year. Further, the federal government must recognize the impact repaying these loans will have on businesses, especially already-struggling small businesses, and fully forgive all loans.
Cost-Sharing for Unemployment Insurance Administrative Costs— Every state’s unemployment insurance system has been tested by the pandemic response, and many state departments of labor have implemented multiple new federal programs using decades-old technology. The Federal government has so far paid half of these administrative costs — that should increase to 100 percent reimbursement, but at the bare minimum this cost sharing must continue. Failing to do so will significantly harm states’ abilities to support unemployed workers.
The United States of America’s economy remains in crisis. More than 20 million of our neighbors received some form of unemployment benefits during the week ending October 31st — over thirteen times the number receiving benefits this time last year.
Not extending these programs — which can largely be accomplished by passing the unemployment and workforce provisions of H.R. 925, the HEROES Act — is akin to abandoning millions of Americans in their time of need. Congress must take action before the calendar year ends, and anything less would be an abdication of your duty.
I look forward to your immediate attention to these matters.
Andrew M. Cuomo Governor, New York State Chair, National Governors Association
On Saturday, August 8, Trump signed four Executive Orders intended to substitute for Congressional Republicans compromising with Democrats on a relief package against the health and economic ravages of the coronavirus pandemic. In a vitriolic speech, delivered to a mini-rally assembled from among his Bedminister golf course members, he attacked the Democrats’ plan, threatened a stock market crash should Joe Biden become president, and promised to end the payroll tax (which funds Social Security) should he be elected.
Indeed, Trump delivered this campaign promise: to reduce income taxes and capital gains taxes (in order to goose the stock market), in effect robbing the US Treasury which is already over $25 trillion in debt with trillions added because of the 2017 GOP tax cuts and the trillions spent on COVID relief, much of it going to the wealthiest and best connected. Instead of providing aid to states and localities which have been devastated by depleted revenues and run-up in costs to address COVID-19, he put more of the burden on states to come up with his faux employment benefits (it requires 25% to be paid by states). Instead of funding election protection and the post office, he accused Democrats of stealing the election.
“The massive taxpayer bailout of badly run blue states we talked about — that’s one of the things they’re looking to do. Measures designed to increase voter fraud,” he told his adoring audience.
“You know what it’s about? Fraud. That’s what they want: fraud. They want to try and steal this election because, frankly, it’s the only way they can win the election.
“The bill also requires all states to do universal mail-in balloting — which nobody is — nobody is prepared for — regardless of whether or not they have the infrastructure. They want to steal an election. That’s all this is all about: They want to steal the election.”
Trump couldn’t resist attacking proposals for a Green New Deal: “And they want to do the Green New Deal, which will decimate our country and decimate — it’s ridiculous, too. It’s childish. I actually say the Green New Deal is childish. It’s for children. It’s not for adults.”
And when asked what happens if the states can’t pony up the 25% to continue the $400 (not $600) unemployment benefits (the 75% that the federal government would spend would be coming from the states’ share of the CARES Act funding), he said, “Well, if they don’t, they don’t…So I don’t think their people will be too happy.”
As for the reduction in unemployment benefits, Trump said, “this gives them a great incentive to go back to work.”
Questioned about the constitutionality of going around Congress, which has the sole “power of the purse,” Trump said, “This will go very [fast]– if — if we get sued. Maybe we won’t get sued. If we get sued, it’s somebody that doesn’t want people to get money. Okay? And that’s not going to be a very popular thing. “
Pressed whether a President should go around Congress “ and decide how money is collected and spent?” Trump retorted, “You ever hear the word ‘obstruction’? “yes,” the reporter replied. “You were investigated for that.”
Trump then replied, “They’ve obstructed. Congress has obstructed. The Democrats have obstructed people from getting desperately needed money.”
“But this is in the Constitution, Mr. President,” the reporter insisted.Asked why he keeps taking credit for Veterans Choice, which was passed in 2014 by the Obama Administration, Trump abruptly ended the press conference.
In reaction to Trump’s executive orders, Vice President Joe Biden, presumptive Democratic nominee for President, issued this statement: –Karen Rubin/news-photos-features.com
Unable to deliver for the American people in a time of crisis, Donald Trump offered a series of half-baked measures today. He is putting Social Security at grave risk at a time when seniors are suffering the overwhelming impact of a pandemic he has failed to get under control. And make no mistake: Donald Trump said today that if he is re-elected, he will defund Social Security.
For months, Trump has golfed rather than negotiated, and sown division rather than pull people together to get a package passed. Now, instead of staying in Washington and working with Republicans and Democrats to reach a bipartisan deal, President Trump is at his golf club in New Jersey signing a series of dubious executive orders.
This is no art of the deal. This is not presidential leadership. These orders are not real solutions. They are just another cynical ploy designed to deflect responsibility. Some measures do far more harm than good.
One order is Donald Trump’s first shot in a new, reckless war on Social Security. Trump announced a payroll tax plan with no protections or guarantees — like the ones the Obama-Biden administration enforced a decade ago — that the Social Security Trust Fund will be made whole. And, Trump specifically stated today that if re-elected, he plans to undermine the entire financial footing of Social Security. He is laying out his roadmap to cutting Social Security. Our seniors and millions of Americans with disabilities are under enough stress without Trump putting their hard-earned Social Security benefits in doubt.
Another order brings cuts, chaos, and confusion to our system of unemployment insurance. Trump is unilaterally reducing the amount laid-off workers could receive. And he purports to provide these benefits until the end of the year, but only identifies enough funding to make it a handful of weeks. Even with that limited funding, Trump is basically playing a cruel game of robbing Peter to pay Paul: He is taking billions of dollars of federal natural disaster funding away so it won’t be available to states like Florida. And, he is forcing states to choose between imposing benefit cuts for unemployed workers or slashing funds for public schools, health workers, and first responders.
A third order, on evictions, is woefully inadequate to deal with the emerging housing crisis. He is leaving our nation’s renters with ever-mounting debt and leaving our small family landlords badly squeezed. Without a comprehensive plan to help our American families make rent, they will leave this crisis months behind on their payments while many landlords teeter on the verge of bankruptcy.
And a fourth order is a band-aid approach to student debt that leaves out 7 million borrowers who obtained their federal loans from private lenders or their college rather than the Department. The economic strain on these Americans is deep and unrelenting.
There is a solution to all of this pain and suffering. A real leader would go back to Washington, call together the leaders of the House and Senate, and negotiate a deal that delivers real relief to Americans who are struggling in this pandemic. We need a president who understands their struggle and believes in their courage to overcome.