The new spending would be paid in part by an additional $ 3.6 trillion in revenue over the same period. The result would be a net deficit of $ 1.4 trillion, which would start to shrink after 2030.
Biden will include $ 300 billion of the $ 5 trillion total in his budget request to Congress for fiscal year 2022. That will bring the president’s total budget request for next year to $ 6 trillion, the President said. source.
Biden’s budget also predicts that inflation will not hit more than 2.3% per year for the next 10 years, reflecting the administration’s belief that some economists’ concerns about soaring inflation are overblown.
As in all presidential budgets, the vast majority of the money in Biden’s 2022 budget request will be spent on programs the federal government is obligated to fund, including Medicare, Medicaid, and Social Security.
Beyond those, Biden has requested $ 1.5 trillion in discretionary funds, half of which is for defense.
The president’s new spending, $ 5,000 billion over 10 years, is intended to finance the two pillars of his vast national agenda: the US plan for jobs and the US plan for families.
This second coin contains additional funding for two years of free universal pre-kindergarten and two years of free community college. It also funds heavily subsidized child care for middle-class families, federally paid family leave, and expanded child tax credits.
The combined cost of these two programs is $ 4.1 trillion over the next decade and would be funded primarily by higher taxes on corporations and the wealthiest taxpayers.
The White House is currently negotiating with Senate Republicans over a possible bipartisan infrastructure deal, but that negotiation is separate from the FY2022 budget request.
Presidential budgets are typically made up of a plan and wishlist, designed to illustrate the president’s political priorities as much as they are to inform the appropriators of Congress.
Presidential budget requests also depend on Congress to pass them. But with Democrats controlling both houses this year, Biden has a much better chance of seeing his budget enacted into law than most of his recent predecessors.
During former President Barack Obama’s last year in office in 2016, Republicans who controlled both the House and the Senate ignored his budget.