Build Back Better Plan

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The Build Back Better Plan or Build Back Better agenda was a soft infastructure legislation plan proposed by U.S. President Joe Biden ahead of his inauguration. It includes funding for COVID-19 relief, social services, welfare, and infrastructure, in addition to funds allocated towards reducing the effects of climate change.^[1]

The plan was divided into three parts. The American Rescue Plan, a COVID-19 relief package, was signed into law in March 2021.^[2] The other two parts were reworked into different bills over the course of extensive negotiations. The American Jobs Plan (AJP) was a proposal to fund infrastructure and reduce the effects of climate change,^[3] while the American Families Plan (AFP) was a social policy proposal that included spending on welfare and social services.^[4] Aspects of infrastructure spending in the AJP were incorporated into the Infrastructure Investment and Jobs Act, which was signed into law on November 15. Other portions of the AJP – such as funding related to climate change and home care – were included in the Build Back Better Act, which also incorporates parts of the AFP relating to welfare and social services.^[5]

Background[]

The COVID-19 pandemic caused substantial job losses in the United States, with one estimate in May 2020 finding that the pandemic resulted in the greatest unemployment crisis since the Great Depression.^[6]

During his presidency, Donald Trump floated using low interest rates to spend on infrastructure, including roads, bridges, and tunnels but specifically excluding the initiatives of the Democratic Party's Green New Deal.^[7]

Vision[]

Shortly before the inauguration of Joe Biden as the 46th president of the United States, Biden laid out the following goals for his "Build Back Better" agenda:^[8]

1. "Build a Modern Infrastructure": The United States has consistently underinvested in the development of workers and millions of positions in rising industries, such as construction and healthcare, have not been fulfilled. President Biden's Build Back Better Plan would invest in training initiatives to help the millions of American workers to create high-quality employment in expanding fields through high-quality career and technical education paths and registered apprenticeships.^[9]
2. "Position the U.S. Auto Industry to Win the 21st Century with technology invented in America"
3. "Achieve a Carbon Pollution-Free Power Sector by 2035"
4. "Make Dramatic Investments in Energy Efficiency in Buildings, including Completing 4 Million Retrofits and Building 1.5 Million New Affordable Homes": Schools were faced with an estimated shortage of 100,000 teachers before the pandemic, which undermined the education of children.  President Biden's Build Back Better Plan will address the lack of teachers and enhance the education of teachers, including providing teacher residencies and by developing programs that provide greater results and generate more POC teachers. During the course of the school year, it would extend free school food to another 9.3 million students and assist families buy food in the summer. The plan includes investing in modernizing school infrastructure to ensure school buildings are up to date, energy efficient, robust, and have technology and laboratory equipment to educate children for the future.^[9]
5. "Pursue a Historic Investment in Clean Energy Innovation"
6. "Advance Sustainable Agriculture and Conservation"
7. "Secure Environmental Justice and Equitable Economy Opportunity"

American Rescue Plan[]

The first part of the plan resulted in a $1.9 trillion COVID-19 relief package, known as the American Rescue Plan Act of 2021. It was signed into law on March 11 using the procedure of reconciliation, allowing it to go into effect with unanimous Democratic support in the Senate and no Republican votes.^[2][10][11]

American Jobs Plan[]

The second portion of the Build Back Better Plan was first pitched as the American Jobs Plan (AJP) and later spun off into the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act, with some aspects carrying over to the $1.75 trillion Build Back Better Act.

Original proposal[]

President Biden speaks about the American Job Plan in Pittsburgh in March 2021

On March 31, 2021,^[12] Biden unveiled details of his $2.3 trillion American Jobs Plan (which, when combined with the American Families Plan, amounted to $4 trillion in infrastructure spending),^[13] pitched by him as "a transformative effort to overhaul the nation's economy".^[14] The plan aimed to create millions of jobs, bolster labor unions, expand labor protections, and address climate change.^[15][16]

Physical infrastructure[]

The plan called for $621 billion of spending on transportation infrastructure. This includes $115 billion towards highways and roads, $80 billion to improve American railways, $85 billion to modernize public transportation, $25 billion towards airports, $174 billion to incentivize adoption of electric vehicles (including $15 billion for the construction of 500,000 electric vehicle charging stations by 2030), and $17 billion for inland waterways, coastal ports, land ports of entry and ferries.^[12] It also calls for electrifying at least 20 percent of the country's yellow school bus fleet.^[12]

The plan called for $100 billion in funding for American energy infrastructure, aiming to transition the country to 100% carbon-free electricity production by 2035. It intends to establish a "Grid Deployment Authority" within the Department of Energy to support the construction of high-voltage transmission lines.^[3]

Infrastructure 'at home'[]

The plan included $213 billion for building and retrofitting more than 2 million homes and $40 billion to improve public housing.^[12] It would also seek to end exclusionary zoning.^[16] The plan included $111 billion for modernizing drinking water, wastewater, and storm water systems. $45 billion of this is intended to replace 100% of the lead water piping in the country.^[3] The plan aimed to deliver universal high-speed broadband coverage.^[12]

The AJP proposed a $16 billion investment in plugging "orphan wells", abandoned wells that continually release methane emissions.^[17] The plan contained $100 billion to construct and upgrade public schools, $25 billion to upgrade childcare facilities, and $12 billion to spend on community colleges.^[12]

The AJP contained a proposal for a , modeled loosely after the Civilian Conservation Corps (CCC) created during the New Deal.^[18][a] The plan proposes that $10 billion be allocated for the program, which the White House has stated would create somewhere between 10,000 and 20,000 jobs.^[17] In contrast, during its nine years in operation, around three million people participated in the original CCC.^[22]

Research and development[]

The plan would spend $180 billion on research and development, including substantial expenditures in clean energy and basic climate research.^[12] It would also spend $50 billion on semiconductor technology.^[12] The plan set aside $300 billion for manufacturing expenditures.^[3]

"Care economy"[]

The plan included $400 billion to expand access to home- or community-based care for seniors and people with disabilities.^[12]

PRO Act[]

The passage of the proposed Protecting the Right to Organize Act (PRO Act) was included as part of the proposal.^[23] The legislation would bolster unions by overriding state right-to-work laws^[24][25] and safeguarding union elections.^[26]

Funding[]

The source of funding was planned to come from raising the corporate tax rate as a part of a proposed "Made in America Tax Plan".^[3] This would partially reverse the 2017 tax reforms that occurred under the Trump administration. The corporate tax rate would rise from 21% to 28%, bringing it closer to the pre-reform tax rate of 35%. The tax plan would aim to raise over $2 trillion by 2036,^[16] with other methods including ending subsidies for fossil fuel companies, increasing the global minimum tax from roughly 13 percent to 21 percent, and deficit spending.^[12][27]

Also planned was an increase of the global intangible low-taxed income (GILTI) from 10.5% to 21%.^[28] GILTI taxes target intangible assets like patents, copyright, and trademarks that can sometimes be used by companies for tax avoidance.^[29] This tax was created in 2017 to discourage U.S.-based companies from shifting profits to corporate tax havens.^[29]

Bipartisan bill[]

On July 28, Senate negotiators announced that a $1.2 trillion agreement for physical infrastructure had been reached.^[30] According to NPR.org, this is set to include:

• "$110 billion for roads, bridges and other major projects;
• $11 billion in transportation safety programs;
• $39 billion in transit modernization and improved accessibility;
• $66 billion in rail;
• $7.5 billion to build a national network of electric vehicle chargers;
• $73 billion in power infrastructure and clean energy transmission" and
• $65 billion for broadband development.^[30]

The bill would also make the Minority Business Development Agency a permanent agency.^[31] The Senate voted to advance the bill by a count of 69–31 on August 10.^[32][33] On November 5, the House of Representatives passed it 228–206.^[34] Biden signed the legislation into law on November 15.^[35]

Reception[]

The Center for American Progress (CAP), a liberal think tank, lauded the AJP for its focus on climate justice.^[36] The program also received support from organized labor, with AFL–CIO president Richard Trumka praising the plan for its inclusion of the PRO Act.^[37] Senator Bernie Sanders spoke favorably of the plan while adding that he believed the White House should go bolder in its proposals.^[38]

Political conservatives dismissed the legislation as costly and challenged the description of policy areas traditionally not included in the realm of "infrastructure" being part of the plan.^[39] Republican Senator Ted Cruz criticized the plan, arguing that it would lead to job losses and served as a "Green New Deal-lite masquerading as an infrastructure plan".^[40] Republican House minority leader Kevin McCarthy called the plan "[m]ajor expansions of government agencies and even more inflation that will lead to higher costs for all Americans."^[41]

American Families Plan[]

In April 2021, the Biden administration announced details of the American Families Plan (AFP).

On May 17, seven Democrats on the House Ways and Means Committee signed a letter to the president asking him to prioritize enhanced unemployment insurance (UI) and direct payments (in the style of those included in response to COVID-19 and the related recession) in the AFP. The letter cited Biden's promise to include the former adjusted to "economic conditions", but further that the latter also "served as [a lifeline] to families and workers that have had their lives upended by the pandemic".^[42] Previously, on March 31, 21 Senate Democrats sent Biden a letter in favor of further stimulus payments and UI, and in April the Economic Security Project reported that two additional direct payments could keep 12 million Americans out of poverty.^[43]

Original proposal[]

"Care economy"[]

The third part of the original Build Back Better agenda, the American Families Plan, set aside $1 trillion in new spending and $800 billion in tax credits (both over ten years).^[44] This included:

• >$200 billion in spending on childcare, ensuring that no family has to pay more than 7% of their income on childcare,
• ~$200 billion to make pre-kindergarten universally available for free,
• >$200 billion towards government-subsidized paid family and medical leave,^[45]
• ~$300 billion towards making community college free for all Americans, and
• ~$200 billion on health insurance subsidies available through the Affordable Care Act healthcare exchanges.^[46][44][47]

It would have extended the boost to the child tax credit made in the American Rescue Plan, which effectively turned the credit into a child allowance.^[48][49] It would also revoke a federal restriction on people with felony drug convictions from obtaining food benefits through the Supplemental Nutrition Assistance Program (SNAP).^[50]

Funding[]

The bill was to have been at least partially funded by a number of tax hikes on high-income Americans and investors,^[46] including restoring the top marginal income tax rate to its pre-2017 level of 39.6% and nearly doubling the capital gains tax for people earning more than $1 million, as well as eliminating a provision in the tax code that reduces capital gains on some inherited assets, like vacation homes.^[44] It would also raise revenue by boosting the budget of the Internal Revenue Service by $80 billion (distributed over ten years), which the White House estimates could raise over $700 billion in revenue that otherwise would have been lost to tax evasion.^[51][52] It would also require the banks to report total account outflows and inflows to the IRS to help detect tax evasion.^[53]

Reconciliation bill[]

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House speaker Nancy Pelosi speech of November 2021 summarising the final contents of the House bill

A reconciliation bill related to 'human infrastructure' is being prepared, which is expected to include measures related to climate change, family aid, and expansions to Medicare. Originally set to cost $3.5 trillion,^[54] it failed to gain the support of moderate Democrats.^[55] On October 28, the White House released a new $1.75 trillion framework.^[56]

Reception[]

A Data for Progress poll conducted in late June 2021 for Invest in America found that 62% of likely voters support passing both the American Families Plan and AJP together using reconciliation. Among Democrats, 86% supported the use of reconciliation, as did 59% of Independents and 36% of Republicans.^[57] By mid-July 2021, most provisions of the American Families Plan had been rolled into the $3.5 trillion 'human infrastructure' bill,^[58] but that bill was later reduced to $1.75 trillion.^[56]

See also[]

• European Green Deal
• Next Generation EU

References[]

Footnotes

Citations

External links[]

Wikiquote has quotations related to: Build Back Better Plan

• The Build Back Better Agenda at whitehouse.gov
• Build Back Better: Joe Biden's Jobs and Economic Recovery Plan For Working Families