Build Back Better Act

Build Back Better Act
U.S. Government · Public domain · source
Shorttitle	Build Back Better Act
Congress	117th
Introduced in	House
Committees	House Budget

Build Back Better Act. The Build Back Better Act was a major legislative proposal advanced during the 117th United States Congress under the administration of President Joe Biden. It represented a comprehensive social policy and climate package designed to expand the American welfare state and transition the national economy toward renewable energy. The legislation followed the passage of the American Rescue Plan Act of 2021 and was a central component of the Biden administration's domestic agenda, though it ultimately failed to pass the United States Senate.

Overview

The framework for the legislation was initially outlined by President Joe Biden and congressional Democratic leaders in the summer of 2021. It was structured as a budget reconciliation bill, allowing it to bypass the filibuster in the United States Senate and pass with a simple majority. The proposal aimed to make historic investments in child care, preschool education, Medicare, affordable housing, and climate change mitigation, funded primarily through increased taxes on corporations and high-income individuals. Key architects included Speaker Nancy Pelosi and Senators Chuck Schumer and Joe Manchin.

Major provisions

The bill's sweeping provisions covered a wide array of policy areas. For climate change, it included significant tax credits for electric vehicles, solar power, and wind power, alongside investments in environmental justice and resilient infrastructure. Social policy measures featured a one-year extension of the expanded Child Tax Credit from the American Rescue Plan Act of 2021, universal pre-kindergarten for three- and four-year-olds, and subsidized child care costs. It also proposed allowing Medicare to negotiate prices for certain prescription drugs, expanding benefits to include hearing aid coverage, and providing funding for home health care through Medicaid. Additional investments were targeted for affordable housing, tuition-free community college, and paid family leave.

Legislative history

The legislative journey began when the House passed a $3.5 trillion budget resolution in August 2021, setting the stage for reconciliation. The House Budget Committee assembled the massive bill, which was then passed by the full House in November 2021. The bill faced immediate challenges in the evenly divided United States Senate, where every Democratic vote was needed. Protracted negotiations, primarily with Senators Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, led to a scaled-back framework. Despite a final push in late 2021 and early 2022, Senator Joe Manchin announced his opposition in December 2021, effectively dooming the legislation. Elements of its climate change and health care provisions were later incorporated into the Inflation Reduction Act.

Projected economic and social impacts

Analyses from the Congressional Budget Office and independent groups like the Penn Wharton Budget Model projected the bill would reduce budget deficits over the long term, citing its proposed revenue increases. Supporters argued it would lower child poverty rates, as demonstrated by the prior Child Tax Credit expansion, and create millions of jobs in clean energy sectors. The Office of Management and Budget stated the investments would increase economic productivity and labor force participation, particularly among women. Critics, including the Tax Foundation, contended the corporate tax increases would negatively impact economic growth and wage growth.

Political debate and public reception

The proposal ignited intense partisan debate, mirroring the divisions over the Affordable Care Act. Democratic leaders framed it as a transformative investment in the middle class and a necessary response to the climate crisis. Republican leadership, including Mitch McConnell and Kevin McCarthy, uniformly opposed it, labeling it as wasteful socialist spending that would fuel inflation. Public opinion polls from Pew Research Center and Gallup showed initial majority support that waned amid concerns over inflation and the bill's price tag. The internal Democratic conflict between progressives and centrists, highlighted by the stalemate with Joe Manchin, dominated the final stages of the debate and underscored the challenges of governing with a narrow majority.

Category:Proposed legislation of the 117th United States Congress Category:2021 in American politics Category:Political terminology of the United States