Build Back Better Act

Build Back Better Act
U.S. Government · Public domain · source
Name	Build Back Better Act
Introduced	September 2021
Sponsor	Nancy Pelosi, Chuck Schumer
Chamber	United States House of Representatives, United States Senate
Status	Proposed legislation
Related	American Rescue Plan Act of 2021, Infrastructure Investment and Jobs Act

Build Back Better Act was a wide-ranging 2021 United States legislative proposal that sought to expand social programs, climate initiatives, and tax policy changes through a large investment package. The proposal originated amid the COVID-19 pandemic recovery period and intersected with major legislative efforts by the Biden administration, congressional leaders, and national advocacy coalitions. Negotiations over scope, financing, and parliamentary procedure produced high-profile disputes involving executive branch officials, congressional caucuses, and external stakeholders.

Background and Legislative History

The proposal followed the legislative sequence set by the American Rescue Plan Act of 2021 and sat alongside the bipartisan Infrastructure Investment and Jobs Act in the 117th United States Congress. Key actors included Joe Biden, Kamala Harris, congressional leaders such as Nancy Pelosi and Chuck Schumer, and influential committee chairs like Bernie Sanders and Ron Wyden. Internal negotiations involved the House Committee on Ways and Means, Senate Committee on Finance, and the House Committee on Energy and Commerce. Advocacy organizations such as Sierra Club, AARP, and Planned Parenthood mobilized alongside labor unions including the AFL–CIO and Service Employees International Union. Opposition voices ranged from Mitch McConnell and Kevin McCarthy to conservative think tanks like the Heritage Foundation and business groups such as the U.S. Chamber of Commerce.

Key Provisions and Budgetary Components

Provisions proposed included expanded tax credits, paid family leave, prekindergarten funding, affordable housing investment, and clean energy incentives. Specific elements involved an enhanced Child Tax Credit modeled after the expansion in the American Rescue Plan Act of 2021, a national paid family and medical leave program influenced by prior proposals from Elizabeth Warren and Pramila Jayapal, and universal pre-K frameworks resembling state initiatives in Vermont and Oklahoma. Climate-oriented measures featured extended tax incentives for renewable energy production and investment, drawing on mechanisms used in the Inflation Reduction Act of 2022 discussions and lessons from the Clean Air Act regulatory history. Financing strategies combined corporate and high-income individual tax changes with modification to international tax rules debated in Organization for Economic Co-operation and Development negotiations and proposals advanced by Senator Ron Wyden and Representative Richard Neal.

Political Debate and Stakeholder Positions

Supporters framed the package as a continuity of priorities advanced by the Biden administration and progressive members of the Democratic Party, with endorsements from climate coalitions like 350.org and public health groups such as the Robert Wood Johnson Foundation. Progressive lawmakers including Alexandria Ocasio-Cortez and Ilhan Omar advocated for bolder climate and social spending, aligning with policy platforms associated with the Squad. Moderate Democrats including Joe Manchin and Kyrsten Sinema expressed concerns echoing arguments from fiscal conservatives and credit-rating analysts like Moody's Investors Service and Standard & Poor's. Republican opposition emphasized tax increases and regulatory effects, with leaders such as Mitch McConnell characterizing the bill as akin to prior Democratic initiatives like Obamacare and Dodd–Frank Wall Street Reform and Consumer Protection Act debates. Business groups and state governors—e.g., Larry Hogan and Ron DeSantis—warned of competitive disadvantages and fiscal impacts, while city mayors and state legislatures in jurisdictions like California and New York lobbied for implementation flexibility.

Legislative Process, Amendments, and Fate

The bill advanced through House and Senate reconciliation strategies during the 117th Congress, invoking budgetary procedures previously used for the Tax Cuts and Jobs Act of 2017. Fractional support in the Senate required unanimous Democratic backing due to the filibuster and 50–50 split, but Senator Joe Manchin withheld support, citing concerns about inflation and national debt estimates produced by the Congressional Budget Office. Multiple revised texts attempted to accommodate concerns with concessions on timelines, cost caps, and eligibility, influenced by negotiations with lawmakers such as Kirsten Gillibrand and Chris Van Hollen. Ultimately, after repeated stalls and public disagreements, the original package was not enacted as proposed; portions of its agenda were later incorporated into subsequent legislation like the Inflation Reduction Act of 2022 and state-level programs.

Economic and Policy Analyses

Analytical commentary came from institutions like the Congressional Budget Office, Brookings Institution, Urban Institute, and Tax Policy Center, which produced divergent estimates on deficit impact, employment effects, and distributional outcomes. Some analyses forecasted short- to medium-term boosts to household income and consumption, citing multipliers referenced in studies of the American Recovery and Reinvestment Act of 2009, while others cautioned about inflationary pressures informed by fiscal theory and experience from Post–World War II economic expansion research. Climate provisions were evaluated against modeling from the Intergovernmental Panel on Climate Change scenarios and energy transition studies by the National Renewable Energy Laboratory, with mixed projections on greenhouse gas reductions pending regulatory design and market response.

Implementation and State-Level Impacts

Had it been enacted, implementation would have required federal agencies such as the Department of the Treasury, Internal Revenue Service, Department of Health and Human Services, and Environmental Protection Agency to issue administrative rules and guidance, paralleling implementation challenges seen with the Affordable Care Act. States and territories including Puerto Rico and Guam anticipated variation in uptake depending on existing programs and budgetary capacity; governors and state legislatures in California, Massachusetts, and Vermont planned complementary measures. Nonfederal actors—philanthropic foundations like the Bill & Melinda Gates Foundation and local school districts—prepared policy proposals to align with anticipated funding streams, while labor-management partnerships considered collective bargaining implications modeled after agreements in New York City public service sectors.

Category:Proposed United States federal legislation 2021