H.R. 5376 – Build Back Better Act
Background: Democrats’ fiscal year 2022 budget resolution contained $1.75 trillion in reconciliation instructions to 13 House and 12 Senate committees. H.R.5376 would enact their reckless tax and spend spree. H.R.5376 passed the House by a vote of 220-213 on November 19.
A budget reconciliation bill is a privileged piece of legislation. The motion to proceed is not debatable and requires only a simple majority. The Budget Act provides for 20 hours of debate on reconciliation bills, equally divided. Once all debate time has been used or yielded back, senators may continue to offer further amendments. No debate is in order, but roll call votes can be taken − a “vote-a-rama.” Amendments must be germane, but non-germane amendments can be considered if they overcome a 60 vote point of order. Provisions that can be placed in a reconciliation bill are limited by the Byrd Rule, under which there is a 60-vote point of order against extraneous provisions in a reconciliation bill.
Floor Situation: The Senate may consider the reckless tax and spend spree on the floor in December.
Executive Summary: Democrats’ partisan reckless tax and spend spree would inflict their radical agenda on every facet of our economy and kick the Biden inflation spiral into overdrive.
Increases the on-budget deficit by $389.2 billion over the next 10 years, despite repeated claims that their bill would cost “zero.”
Hikes taxes on the middle class while handing out tax breaks to wealthy Americans.
Exacerbates Biden’s border crisis with a massive backdoor amnesty plan.
Rams through Democrats’ radical climate plans, which will further drive up energy prices for Americans.
Enacts a sweeping takeover of the nation’s child care system, crowding out faith-based and family providers, and eliminating choices for families.
Creates a massive Green New Deal government jobs program for climate activists, while employers are struggling to fill 10 million open jobs.
Dramatically expands the federal welfare state, with direct government support decoupled from need and work.
Creates a new paid leave entitlement and expands Medicare, instead of addressing the looming fiscal and structural issues that threaten existing entitlement programs.
TITLE I—Committee on Agriculture
CBO estimates this title would result in direct spending budget authority totaling $81.7 billion and direct spending outlays totaling $76.9 billion over the 2022-2031 period.
Subtitle A: General Provisions
Subtitle B: Forestry
- Provides funding for forestry initiatives across the Department of Agriculture, including:
- $10 billion to reduce hazardous fuels on National Forest System lands in “wildland urban interface.”
- $4 billion for projects to reduce hazardous fuels located outside WUI, contingent on a determination by the secretary that certain WUI actions have been met in addition to other conditions on the Forest Service, such as: noncommercial, small diameter trees, maximize old-growth, and other stipulations that curtail effective management.
Subtitle C: Rural Development and Agricultural Credit and Outreach
- Provides funding to support rural initiatives across USDA, including:
- $97 million to facilitate grants for rural water and wastewater projects.
- $970 million to remove lead service lines in rural areas.
- $2.9 billion in forgivable loans to utilities building renewable electricity generation projects.
- $200 million for the Rural Energy Savings program.
- $2 billion for the Rural Energy for America Program, which includes around $300 million for grants and guaranteed loans under the program to support “underutilized renewable energy technologies.”
- $960 million to support infrastructure for biofuels.
- $9.7 billion to facilitate grants to rural electric providers to retire fossil-fuel-burning plants and deploy renewable energy systems or facilitate energy efficiency updates.
- $970 million for a new “Rural Partnership Program” to facilitate grants to states and tribes to support rural development.
- Provides such sums as necessary to support payments to “economically distressed borrowers.”
- $1 billion for payments or loan modifications for borrowers “focusing on borrowers who are at risk.”
- $775 million for a program to make payments of up to $500,000 per farmer, rancher, or forest landowner determined to have experienced discrimination prior to January 1, 2021, in Department of Agriculture farm lending programs.
Subtitle D: Research and Urban Agriculture
- $1 billion for research infrastructure only at minority-serving institutions.
- $980 million for climate research and a scholarship program.
- $20 million for urban agriculture initiatives.
Subtitle E: Miscellaneous
- $200 million for the Farmworker and Food Worker Relief Grant program.
- $5 million for audits, oversight, and investigations
Subtitle F: Conservation
- Provides funding for conservation programs and initiatives:
- $5 billion to give $25 per acre to producers who plant cover crops up to 1,000 acres and $5 per acre to landowners who allow the establishment of cover crops up to 1,000 acres.
- $9 billion for the Environmental Quality Incentives program. Removes a set-aside, popular among farmers and ranchers, dedicated to livestock practices and extends until 2031 a set-aside for wildlife habitat, popular among environmental groups. Removes $450,000 per five years year producer payment limitations.
- $4.1 billion for the Conservation Stewardship program. Removes $200,000 per year producer payment limitation.
- $1.7 billion for the Agricultural Conservation Easement program, a land retirement program.
- $7.5 billion for the Regional Conservation Partnership program and allows the department to leverage corporate sustainability commitments.
- $200 million for Natural Resources Conservation Service technical assistance.
- $50 million for “climate change adaptation and mitigation activities” at NRCS.
- $600 million for NRCS to facilitate a new Carbon Sequestration and Greenhouse Gas Emissions Quantification Program to collect data from U.S. farms and ranches.
- Extends conservation programs to 2031; three farm bills from now.
Title II – Committee on Education and Labor
CBO estimates this title would result in direct spending budget authority totaling $459.0 billion and direct spending outlays totaling $458.0 billion over the 2022-2031 period and an increase in revenues of $3.8 billion over the 2022-2031 period.
Subtitle A: Education Matters
- $500 million for state grants for student retention and completion activities.
- $6 billion in institutional aid to Historically Black Colleges and Universities, Tribal Colleges and Universities, and Minority Serving Institutions, over fiscal years 2022 through 2026, as well as $3 billion for research and development infrastructure at HBCUs and MSIs.
- Provides mandatory funding to increase the maximum federal Pell Grant by $550 starting in the 2022-23 school year and ending after the 2029-30 school year. The current maximum Pell Grant is $6,495.
- Makes DACA, temporary protected status, and deferred enforced departure students eligible for Title IV federal financial aid programs through school year 2029-2030.
Subtitle B: Labor Matters
- $1.9 billion for Department of Labor agencies, including the Occupational Safety and Health Administration and the Wage and Hour Division, for enforcement and related activities.
- $350 million for the National Labor Relations Board
- $321 million to the Equal Employment Opportunity Commission for investigations and enforcement activities.
- Increases certain OSHA civil monetary penalties tenfold. Businesses would face a minimum penalty of $50,000 and a maximum of $700,000 for willful or repeated violations.
- Increases Fair Labor Standards Act penalties. Employers could pay up to $20,740 for each willful or repeated minimum wage or overtime violation, up from $1,100. The new maximum penalty for tip violations would be $11,620, up from $1,100. Increases the maximum penalty under the Migrant and Seasonal Agricultural Worker Protection Act to $25,790.
- Adds civil monetary penalties for businesses charged with unfair labor practices, on top of any remedies the NLRB orders. Businesses would pay up to $50,000 per violation, but the board could double a penalty to $100,000 under certain terms. Grants the NLRB discretion to impose personal liability against individual company officers and directors and charge them civil monetary penalties of up to $100,000 under certain terms.
Subtitle C: Workforce Development Matters
- Funding for job training and workforce development programs, including:
- $2 billion for dislocated workers.
- $1 billion for adult workers.
- $1.5 billion for youth workforce investment.
- $1 billion for registered apprenticeships, youth apprenticeship programs, and pre-apprenticeship programs.
- $5 billion for industry or sector partnership grants to increase workforce development and employment in high-skill, high-wage, or in-demand sectors.
- $500 million for the Job Corps.
- $4.9 billion for grants to community colleges to support the development of training programs.
- $294 million in grants to expand competitive integrated employment opportunities for people with disabilities.
- $1 billion in grants to increase wages, benefits, and “supportive services” – including transportation and child care – for direct care workers.
Subtitle D: Child Care and Universal Pre-kindergarten
- $100 billion over fiscal years 2022-2024, and such sums as necessary for fiscal years 2025-2027, for the Department of Health and Human Services to provide a new “birth through five child care and early learning” entitlement program.
- $4.8 billion over fiscal years 2023-2027 for localities and an additional $14.3 billion over fiscal years 2023-2027 for Head Start in states that choose not to participate in the new child care entitlement.
- Creates a new federal child care entitlement for children up to five years old. States would be required to serve all eligible families up to 150% of state median income in FY 2024 and up to 250% in FY 2025. Under the current Child Care and Development Block Grant, states may only serve families up to 85% SMI.
- Appropriates $18 billion over fiscal years 2022-2024 and such sums as necessary for fiscal years 2025-2027 to cover the federal share of a new preschool entitlement program for three and four-year-old children.
- Appropriates $1.9 billion annually for fiscal years 2023-2028 for grants to localities and an additional $1.9 billion annually for fiscal years 2023-2028 for grants to Head Start if their state chooses not to participate in the program.
- Appropriates $2.5 billion annually for fiscal years 2022-2027 to increase pay for Head Start staff.
Subtitle E: Child Nutrition and Related Programs
· Expands the community eligibility rules for more students to receive free meals at school.
· Provides such sums as necessary for a national summer electronic benefits transfer program that would provide $65 per month per eligible child for nutrition assistance during the summer, when these students are not in school. Children who receive free or reduced price meals during the school year would be eligible, and so would children who do not have financial need for free meals but go to schools where community eligibility rules make meals free for all students. This means some children will qualify for the summer EBT program regardless of need.
Subtitle F: Human Services and Community Supports
· $1 billion in funding for programs including assistive technology, family violence prevention, pregnancy assistance, aging network and infrastructure.
· $40 million tor grants to states and organizations to address the behavioral health needs of family caregivers.
· $25 million in grants to organizations to address the behavioral health needs of people with intellectual and developmental disabilities.
Subtitle G: National Service and Workforce Development in Support of Climate Resilience and Mitigation
· $12 billion for the Corporation for National and Community Service, including $6.9 billion for national service in support of climate resilience and mitigation.
· $2.8 billion for the National Service Trust.
· $4.2 billion to support workforce development in industry sectors related to climate resilience or mitigation.
Subtitle H: Prescription Drug Coverage Provisions
· Requires group health plans and insurers to cover certain insulin products before the deductible is applied and with cost-sharing of no more than $35 or 25% of the negotiated price, whichever is lower.
· Requires pharmacy benefit managers to provide semi-annual reports on the costs, fees, and rebate information associated with their contracts to employers and other group health plan sponsors. The reporting requirement would go into effect on January 1, 2023. PBMs would face monetary penalties for not complying with the requirement.
Title III: Committee on Energy and Commerce
CBO estimates this title would result in direct spending budget authority totaling $321.7 billion and direct spending outlays totaling $304.4 billion over the 2022-2031 period and an increase in revenues of $21.9 billion over the 2022-2031 period.
Subtitle A: Air Pollution
· $5 billion for the Environmental Protection Agency to create a program to provide grants for state and local governments and other entities to procure new zero-emission heavy-duty vehicles for the replacement of older vehicles, $2 billion of which is reserved for projects in areas designated as nonattainment areas under the Clean Air Act.
· $3.5 billion for EPA to create a program to issue grants to address port emissions, $875 million of which is reserved for projects in nonattainment areas.
· $29 billion for EPA to create a Greenhouse Gas Reduction Fund, also known as a “national climate bank” or “green bank,” to support projects advancing the use of zero-emission technologies, particularly in low-income and disadvantaged communities, through direct and indirect financial assistance, with $19.97 billion reserved for nonprofit green banks.
· $150 million for EPA to provide grants to address wildfire smoke.
· $60 million for EPA to provide grants for reducing diesel emissions related to goods movement.
· $230.5 million for air-quality and methane-related grants, $45 million for directing EPA to develop and implement new greenhouse gas regulations under nine different sections of the Clean Air Act, and $5 million for grants to states to adopt California greenhouse regulations for mobile sources.
· $50 million for addressing air pollution and greenhouse gas emissions at schools located in low-income and disadvantaged communities.
· $87 million for several EPA initiatives to reduce greenhouse gas emissions associated with electricity, including $18 million directing EPA to establish new regulatory requirements on electricity generation and use to drive down greenhouse gas emissions.
· $5 million for funding new tests and protocols under the Renewable Fuel Standard of the Clean Air Act and $10 million to support investments in advanced biofuels.
· $38.5 million to fund implementation of the American Innovation and Manufacturing Act.
· $50 million for EPA to fund enforcement technology and information efforts.
· $5 million for EPA to “enhance transparency” on corporate reporting for voluntary greenhouse gas and climate commitments
· $250 million for EPA to develop greenhouse gas disclosure requirements, also called product declarations, for construction materials and products.
· Requires EPA to impose a “methane waste emissions charge” on producers, processors, and distributors of petroleum and natural gas products and supporting infrastructure. Provides $775 million for EPA to provide assistance to producers and “communities” to monitor and mitigate methane emissions and support “environmental restoration.”
· $50 million for the EPA Office of the Inspector General.
· $5 billion in Climate Pollution Reduction Grant funding for EPA to provide greenhouse gas air pollution planning grants and implementation grants to states, tribes, and other government entities.
· $20 million for EPA to support environmental reviews.
· $100 million for EPA to develop, in consultation with the Federal Highway Administration, identification and labeling requirements for “low-embodied carbon construction materials and products” used in transportation projects.
Subtitle B: Hazardous Materials
· $190 million for EPA to provide competitive grants aimed at mitigating waste and prioritizing recycling.
· $3 billion for EPA to facilitate grants to “community-based” non-profit organizations to address environmental and climate justice in disadvantaged communities.
· $10 million for EPA to collect data on recycling.
Subtitle C: Drinking Water
· $9 billion for grants to replace lead water infrastructure in disadvantaged communities and at schools.
· $225 million for grants “to assist low-income households that pay a high proportion of household income for drinking water and wastewater (including storm water) services.”
Subtitle D: Energy
Residential Efficiency and Electrification Rebates
· $360 million for state energy conservation plans.
· $5.9 billion for DOE to create a Home Owner Managing Energy Savings rebate program.
· $2.2 billion to create a High-Efficiency Electric Home Rebate Program for homeowners and multifamily building owners performing electrification projects, including $4 million for community and consumer education and outreach related to the program and $220 million to administer this program. Provides an additional $3.8 billion for projects involving low- or moderate-income households or those in tribal communities.
Building Efficiency and Resilience
· $500 million for DOE to facilitate “projects to improve the energy resilience of public or nonprofit buildings.”
· $300 million for DOE to fund grants to support the implementation of new building energy codes.
Zero-Emissions Vehicle Infrastructure
· $1 billion for DOE to support programs to deploy infrastructure for zero-emissions vehicles in rural, underserved, or disadvantaged communities.
DOE Loan and Grant Programs
· Authorizes the secretary of energy to make commitments to guarantee loans up to a total principal amount of $40 billion for projects to mitigate greenhouse gas emissions authorized under section 1703 of the Energy Policy Act of 2005; appropriates $3.6 billion for the costs of guarantees made pursuant to this loan guarantee authority.
· $3 billion for DOE to provide financial assistance under the Advanced Technology Vehicles Manufacturing Loan Program.
· $3.5 billion for DOE to provide “grants relating to domestic production of plug-in hybrid, plug-in electric, and hydrogen fuel cell electric vehicles.”
· $5 billion to create a program to provide support for “enabling low-carbon reinvestments in energy communities.”
· $200 million to carry out the Tribal Energy Loan Guarantee Program.
· $2 billion for DOE to support the updating or construction of transmission lines through grants and loans.
· $100 million to aid efforts to advance offshore wind.
· $800 million to facilitate the siting of interstate electricity transmission lines.
· $40 million to carry out organized wholesale electricity market technical grants.
· $200 million for DOE and the Federal Energy Regulatory Commission to bolster environmental reviews.
· $4 billion for DOE to create a program to update “advanced industrial technology.”
Oversight and Administration
· $5 million for the DOE inspector general for oversight of initiatives funded under the bill.
· $40 million for the Energy Information Administration.
Subtitle E: Affordable Health Coverage
· Beginning in 2022 through 2025, people with incomes below 138% of the federal poverty level would be eligible for ACA marketplace cost-sharing reduction payments.
· Creates a never-ending special enrollment period from January 1, 2022, to December 31, 2025, for people with incomes below 138% FPL.
· Requires ACA plans to cover non-emergency medical transportation and family planning services for people with incomes below 138% FPL without Hyde-protected funds or regard for state decisions to ban taxpayer funding of abortion on exchanges. People would be able to receive those services at no cost and without restriction on choice of provider.
· $10 billion in annual funding for states to establish a program to make payments for reinsurance or other activities to decrease premiums and out-of-pocket costs for marketplace enrollees. States that have not expanded their Medicaid program would be barred from participating and CMS would create and carry out a temporary reinsurance program instead.
· $50 million for Section 1332 waivers for “administration and planning grants” to states, available in fiscal year 2022. States would be eligible for grants up to $5 million and to use the funds until fully expended.
· Would entitle anyone receiving unemployment compensation, regardless of total annual income, to receive cost-sharing reductions from qualified health plans on ACA exchanges in 2022.
· Punishes states that have not expanded Medicaid by reducing their Disproportionate Share Hospital and uncompensated care pools by nearly $35 billion over 10 years.
· Increases the federal matching payments for Medicaid expansion enrollees from 90% to 93% from 2022 to 2025, resulting in $10 billion in new spending without enrolling a single extra person.
Subtitle F: Medicaid
· Expands Medicaid home and community based services for some states. The HCBS program would provide a state option that would condition an increased 6% federal match on compliance with new payment rules and benefit expansions. If a state makes additional labor reforms for the direct care workforce, including increasing union participation in state Medicaid programs, the state is eligible for an additional 2% federal match for six quarters.
· Makes permanent the Medicaid Money Follows the Person and spousal impoverishment programs.
· $50 million to HHS to validate nursing home quality data.
· $250 million to HHS to audit Medicare cost reports submitted by skilled nursing facilities.
· $325 million to HHS to improve and carry out surveys in skilled nursing facilities related to infection control and emergency preparedness.
· Requires Medicaid and CHIP to provide continuous coverage for pregnant and postpartum women through one year post-pregnancy.
· Creates a new pregnancy medical home with a 15% enhanced federal match for eight fiscal quarters.
· Permanently funds the territory Medicaid program by providing elevated funding caps and permanent federal matching rates of 83%, higher than any state.
· Requires Medicaid and CHIP to provide continuous coverage for children for one year.
· Requires state Medicaid programs to provide coverage for incarcerated people 30 days before their scheduled release.
· From April 1 to September 30, 2022, winds down the enhanced 6.2% federal match to support states’ COVID response without eliminating the requirements that states continue cover people through the end of the public health emergency. This will require states to continue paying for care for people who are not eligible for Medicaid, with no federal financial support.
· Expands the Certified Community Behavioral Health Clinic demonstration.
· Requires states to maintain eligibility standards that were in place as of January 1, 2020, through the end of 2025 or else lose 3.1% of the federal match for the broader state Medicaid program.
Subtitle G: Children’s Health Insurance Program
· Permanently extends the Children’s Health Insurance Program.
· Requires state Medicaid and CHIP programs to keep children continuously enrolled in these programs for a one year period.
Subtitle H: Medicare Coverage of Hearing Services
· Adds hearing services to Medicare Part B beginning in 2023. Provides hearing benefits for people with “moderately severe, severe, or profound” hearing loss. Medicare Part B would cover the hearing exam, the fitting for hearing aids, and hearing aids every five years.
Subtitle I: Public Health
· $16 billion for workforce and infrastructure programs without Hyde protections, including to state and local public health departments, for construction and modernization of health care facilities and schools of medicine, for the expansion of the teaching health center and children’s hospitals graduate medical education programs, and for palliative care and hospice education and training.
· $2.7 billion for public health preparedness activities to the Centers for Disease Control and Prevention and the Office of the Assistant Secretary of Preparedness and Response.
· $300 million for infrastructure at the FDA.
· $600 million for multiple grant programs (both new and existing) that address maternal health without Hyde protections.
· $3 billion for other miscellaneous programs, including the Community Violence and Trauma Interventions program, Ryan White HIV/AIDS program, and an STD prevention pilot program.
· $2.9 billion to the World Trade Center Health Program for education, outreach, and medical treatment to 9/11 responders and survivors.
· $300 million for Native Hawaiian health programs.
Subtitle J: Next Generation 911
· $470 million for the National Telecommunications and Information Administration for grants to implement Next Generation 911.
· $9 million for the establishment of a NG 911 Cybersecurity Center to coordinate information sharing among state, local, and regional governments.
· $1 million for the establishment of a Public Safety Next Generation 911 Advisory Board to provide recommendations regarding NG 911 grants.
Subtitle K: Other Matters Related to Connectivity
· $100 million for the FCC to conduct outreach and provide education regarding broadband and affordability programs of the FCC
· $7 million to establish a Future of Telecommunications Council to advise Congress on the development and adoption of 6G and other advanced communications technologies.
· $280 million for grants to covered public-private partnerships for pilot projects to increase access to affordable broadband services, and $15 million to NTIA to administer this program.
· $5 million to NTIA to establish a 12-member advisory committee to advise the FCC and NTIA on ways to make broadband more affordable.
· $475 million to NTIA for grants in support of connected device distribution programs, and an additional $20 million to NTIA to administer these programs and $5 million to conduct outreach about these programs.
Subtitle L: Distance Learning
· $300 million to the FCC’s Emergency Connectivity Fund.
Subtitle M: Manufacturing Supply Chain and Tourism
· $5 billion for the Commerce Department to support the resilience, diversity, security, and strength of manufacturing supply chains affecting interstate commerce.
Subtitle N: FTC Privacy Enforcement
· $500 million for the FTC to establish a bureau focused on privacy, data security, data abuses, and identity theft.
· Authorizes the FTC to obtain civil penalties for first-time offenses under the FTC Act.
Subtitle O: Department of Commerce Inspector General
· $5 million to the Department of Commerce’s Office of the Inspector General for oversight activities.
Title IV: Committee on Financial Services
CBO estimates this title would result in direct spending budget authority totaling $156.6 billion and direct spending outlays totaling $151.5 billion over the 2022-2031 period and an increase in revenues of $796 million over the 2022-2031 period.
Subtitle A: Creating and Preserving Affordable, Equitable, and Accessible Housing for the 21st Century
· $10 billion for formula grants to public housing agencies to carry out capital and management activities.
· $53 billion to repair, replace, or construct public housing. Funds may be allocated at the HUD secretary’s discretion. Includes a $40 billion earmark for the New York City Housing Authority.
· $9.9 billion for activities and assistance for the HOME Investment Partnerships Program.
· $14.9 billion for the Housing Trust Fund.
· $740 million to establish the Housing Investment Fund within the Community Development Financial Institutions Fund.
· $450 million for supportive housing for people with disabilities.
· $450 million for supportive housing for the elderly.
· $1.7 billion for loans or grants for energy efficiency projects, including electric vehicle charging stations, at properties that receive federal housing assistance.
· $1.5 billion for loans to make improvements to distressed multi-family properties.
· $1.8 billion for loans related to rural rental properties.
· $15 billion for housing vouchers for low-income families.
· $880 million for project-based rental assistance.
· $277.5 million for Native American housing assistance.
Subtitle B: 21st Century Sustainable and Equitable Communities
· $1.7 billion in Community Development Block Grant funding.
· $3.4 billion for addressing lead-based paint and other health hazards.
· $1.6 billion for a new “unlocking possibilities program” to provide grants to reform zoning regulations.
· Fully cancels the $20.5 billion in debt owed by the National Flood Insurance Program to the Treasury Department.
· $2 billion for a new Community Restoration and Revitalization Fund for grants to nonprofits and other eligible entities to do things including housing planning and construction, creating or maintaining affordable rental units and homes, and producing or buying housing to use in a community land trust.
Subtitle C: Homeownership Investments
· $6.8 billion for a new down payment assistance program to provide free down payments to first-time and first-generation homebuyers.
· $4 billion for federally guaranteed 20-year mortgages for “first-time” and “first generation” homebuyers.
· $76 million for a program to increase access to small-dollar mortgages.
Subtitle D: HUD Administration and Agency Oversight
· $949 million to the HUD secretary for administrative costs.
· $50.7 million in funding to the Offices of Inspector General at HUD, USDA, and Treasury.
Subtitle E: Economic Development
· $200 million for the Minority Business Development Agency to fund rural business centers via agreements with minority-serving institutions of higher education and $400 million to establish at least five regional offices.
· $1 billion for grants to assist in the formation and growth of minority business enterprises
· $500 million to the Defense Production Act Fund
Title V: Committee on Homeland Security
CBO estimates this title would result in direct spending budget authority totaling $1.5 billion and direct spending outlays totaling $1.4 billion over the 2022-2031 period.
· $100 million in funding for the Cybersecurity and Infrastructure Security Agency to improve the cybersecurity of federal information systems that are not national security systems.
· $15 million for the Cybersecurity Education and Training Assistance Program.
· $50 million for enhancing cloud security.
· $50 million for expansion and operation of the CyberSentry program.
· $50 million for researching and developing means to secure industrial control systems.
· $100 million to CISA for cybersecurity workforce development and education.
· $35 million to CISA to support the Multi-State Information Sharing and Analysis Center.
· $80 million for FEMA to award grants to state, local, and tribal governments for cybersecurity recruitment and training efforts in consultation with CISA.
· $20 million for FEMA to award grants to state, local, tribal and territorial governments to carry out activities to migrate to the .gov domain in consultation with CISA.
Title VI: Committee on the Judiciary
CBO estimates this title would result in direct spending budget authority totaling $134.1 billion and direct spending outlays totaling $133.7 billion over the 2022-2031 period and an increase in revenues of $12 billion over the 2022-2031 period.
Subtitle A: Immigration Provisions
· Authorizes parole for undocumented immigrants for a period of 10 years.
· Parole is a discretionary authority of the DHS Secretary to allow for an individual who might otherwise be deemed inadmissible to the U.S. under provisions of the Immigration and Nationality Act the ability to enter and stay in the United States for a certain amount of time. The authority is supposed to be exercised “only on a case-by-case basis for urgent humanitarian reasons or significant public benefit.”
· To be eligible for parole under the bill, undocumented immigrants must:
Have entered the country, legally or illegally, before January 1, 2011, and continuously resided here since then;
not be inadmissible under a handful of INA inadmissibility grounds, including criminality, security, and related grounds;
pass a background check;
File a parole application and pay a fee.
· Parolees would receive work authorization, travel authorization, and be eligible to receive a REAL-ID compliant driver’s license or identification card.
· The committee’s bill also makes a number of changes to the legal immigration system.
Allows for the issuance of green cards beyond the statutory caps set in current immigration law.
Allows any diversity visa lottery recipients from fiscal years 2017 through 2021 to get their visa if they were previously denied a visa or were unable to come to the United States because of the Trump administration’s travel bans or certain travel and processing limitations caused by the COVID-19 pandemic.
Allows family-based and employment-based, and diversity visa lottery immigrants who have an approved green card petition to file for early adjustment of status to lawful permanent resident status even if a green card is not available for them at the time their application is filed. Filing the adjustment application gives them access to an open-market employment authorization document.
It also allows most family-sponsored and employment-sponsored immigrants with approved green card petitions to receive a green card two years early if they pay a supplemental fee.
Imposes new supplemental fees on various categories of green card applications, temporary worker petitions, and other immigration-related applications and allocates $2.8 billion to U.S. Citizenship and Immigration Services for fiscal year 2022 to carry out the provisions of the bill.
Subtitle B: Community Violence Prevention
· $2.5 billion for community-based policing initiatives.
Subtitle C: Antitrust
· $500 million for the Justice Department’s Antitrust Division to carry out its work.
· $500 million for the FTC to carry out its antitrust related work.
Subtitle D: Revenue Matters
· $498 million to the attorney general for enforcing federal laws against tax evasion
Title VII: Committee on Natural Resources
CBO estimates this title would result in direct spending budget authority totaling $17.0 billion and direct spending outlays totaling $16.3 billion over the 2022-2031 period.
Subtitle A: Native American and Native Hawaiian Affairs
· Provides approximately $4 billion for Native American and Native Hawaiian Affairs programs and initiatives relating to Indian health, infrastructure, energy, and climate resilience, including: $945 million for Indian Health Service maintenance and improvement of health care facilities; $1 billion for priority health care facility projects; $490 million for public safety and justice programs; $715.4 million for road construction and improvements; and $294 million for a tribal electrification program.
Subtitle B: National Oceanic and Atmospheric Administration
· $6 billion for restoration projects in coastal areas; $1 billion for efforts to restore Pacific salmon; $500 million for fish stock assessments and research; $400 million for fish hatcheries; $300 million for updating NOAA facilities; $100 million to support National Marine Sanctuary facilities; $20 million for “efficient and effective reviews”; and $2 million for the Seafood Import Monitoring Program.
Subtitle C: U.S. Fish and Wildlife Service
· $180 million for Fish and Wildlife Service’s Endangered Species Act recovery plans. Also includes funding for several species-specific conservation efforts: $4.9 million for Hawaiian Islands and Pacific Island Territories plants; $4.9 million for pollinators; $4.9 million for freshwater mussels; and $4.9 million for desert fish.
· Provides funding for other FWS initiatives: $242.5 million for improvements to the National Wildlife Refuge System; $9.7 million to support projects related to wildlife corridors; and $38.8 million for grassland habitat projects.
Subtitle D: Water Resources Research and Technology Institutes
· $50 million for the United States Geological Survey to support water resources initiatives.
Subtitle E: Council on Environmental Quality
· $65 million for “environmental and climate data collection” by the Council on Environmental Quality.
· $15 million for CEQ for “efficient and effective environmental reviews.”
Subtitle F: Department of the Interior Efficient and Effective Reviews
· $100 million for DOI to facilitate “more efficient, accurate, and timely reviews.”
Subtitle G: Public Lands
· $500 million to carry out “lands projects” and $2 billion for related “conservation” and “resiliency” projects by NPS and BLM.
· $500 million for BLM and NPS efforts to address wildfires.
· $400 million for NPS deferred maintenance projects. Also allows funds to be used to cover housing costs for NPS and BLM employees, as well as “participants in corps programs performing appropriate conservation projects or resiliency and restoration projects.”
· Provides additional funding for NPS: $100 million for grants to address parks and facilities located in urban areas; $25 million for historic preservation efforts; $50 million for national heritage areas; $500 million for hiring employees.
Subtitle H: Drought Response and Preparedness
· Provides funding for water initiatives, including $550 million for the Bureau of Reclamation to facilitate water projects.
Subtitle I: Insular Affairs
· Provides funding for Insular Affairs, including $1 billion to support critical infrastructure for the territories and $29.1 million to facilitate technical assistance related to climate change.
Subtitle J: Offshore Wind
· Encourages offshore wind production on the outer continental shelf.
Subtitle K: Preventing Damage from Mining
· $3 million for BLM to “revise rules and regulations to prevent undue degradation of public lands due to hardrock mining activities.”
Subtitle L: Arctic National Wildlife Refuge
· Repeals the oil and gas program for the non-wilderness portion of the Arctic National Wildlife Refuge and cancels all leases awarded under it. The program was included as Title I of the 2017 Tax Cuts and Jobs Act.
Subtitle M: Outer Continental Shelf Oil and Gas Leasing
· Imposes permanent moratoriums on offshore oil and gas leasing in the Eastern Gulf of Mexico, Atlantic, and Pacific federal waters.
Subtitle N: Fossil Fuel Resources
· Raises royalty rates from a minimum of 12.5% to 18.75% for onshore and to 14% for offshore oil and gas production. Increases the current national minimum acceptable bid for oil and gas leases from $2 per acre to $10 per acre and requires the secretary of the interior to update rates based on inflation a minimum of once every four years.
· Seeks to create several new fees on federal coal, oil, and gas leaseholders, including annual lease fees, annual inspection fees, and fees for idled wells. Also requires the Bureau of Safety and Environmental Enforcement to institute a fee on operators of offshore oil and gas pipelines to be charged annually.
Subtitle O: United States Geological Survey
· Provides funding for the United States Geological Survey: $47 million for 3D Elevation Program; and $50 million for the Regional and National Climate Adaptation Science Centers to support climate change response efforts.
Title VIII: Committee on Oversight and Government Reform
CBO estimates this title would result in direct spending budget authority totaling $13.8 billion and direct spending outlays totaling $13.8 billion over the 2022-2031 period.
· $2.9 billion to General Services Administration to procure zero-emission and electric vehicles.
· $5 million to fund the GSA Office of Inspector General.
· $2.5 billion for the Postal Service to purchase electric delivery vehicles and $3.4 billion for the infrastructure to support Postal Service electric delivery vehicles.
· $15 million for the USPS Office of Inspector General and $25 million to the Government Accountability Office.
· $25 million to the Office of Management and Budget to implement the administration’s Justice40 Initiative and track labor, equity, and environmental performance across the federal government.
· $975 million to GSA for emerging and sustainable technologies.
· $3.2 billion to GSA for the purchase of goods, services, and systems to improve energy efficiency and reduce the carbon footprint.
Title IX: Committee on Science, Space, and Technology
CBO estimates this title would result in direct spending budget authority totaling $9.4 billion and direct spending outlays totaling $9.3 billion over the 2022-2031 period.
· Provides funding for several DOE offices, including $1 billion for the Office of Energy Efficiency and Renewable Energy, $985 billion for the Office of Science, $10 million for the Office of Fossil Energy and Carbon Management, and $5 million for diversity initiatives within the Office of Economic Impact and Diversity.
· $100 million for the EPA to support climate change research.
· $95 million for FEMA to provide grants for the procurement of firefighting foam and equipment free of perfluoroalkyl or polyfluoroalkyl contaminants – or, PFAS.
· Provides funding for the National Aeronautics and Space Administration, including $748 million for infrastructure improvements and updates and $115 million to fund climate-related research.
· $500 million for several research initiatives at the National Oceanic and Atmospheric Administration. Also includes $20 million for “climate education,” $200 million for NOAA to procure new research equipment and $139 million for NOAA to purchase a hurricane hunter aircraft.
· $100 million to the National Institute of Standards and Technology for research on the impact of fire on structures located at the Wildland Urban Interface.
· $260 million to NIST for the Hollings Manufacturing Extension Partnership.
· $220 million to NIST for advanced manufacturing research, and $20 million for the development and execution of a cybersecurity workforce training center.
· $650 million to NIST to upgrade, replace, maintain, and renovate facilities and equipment.
· $668 million to the National Science Foundation for research awards, scholarship, and fellowships.
· $1.5 billion to NSF to fund the Directorate for Technology, Innovation, and Partnerships.
· $500 million to NSF for repair, instruments, and facilities.
· $25 million to NSF for activities and research related to broadening demographic participation.
· $500 million to NSF for climate change research.
· $25 million to NSF for research security.
· $200 million to NSF for research capacity building at HBCUs, Tribal Colleges and Universities, Hispanic-serving institutions and other minority-serving institutions.
· $55 million to NSF for cybersecurity education and training.
· $7 million for the NSF Office of Inspector General.
Title X: Committee on Small Business
CBO estimates this title would result in direct spending budget authority totaling $5.0 billion and direct spending outlays totaling $5.0 billion over the 2022-2031 period.
Subtitle A: Increasing Federal Contracting Opportunities for Small Businesses
· $35 million in grants for nonprofits to train veteran-owned businesses how to increase the likelihood of being awarded federal contracts.
· $100 million to the Surety Bond Guarantees Revolving Fund to increase SBA’s guarantees on federal and nonfederal contracts.
Subtitle B: Empowering Small Business Creation and Expansion in Underrepresented Communities
· $1 billion in financial assistance to “business incubators” in certain communities.
· $10 million for the SBA’s Office of Native American Affairs.
· $10 million to host at least one rural small business conference per year across the U.S.
· $10 million to establish the Office of Emerging Markets to focus on underserved communities.
· $63 million for additional appropriations for the State Trade Expansion Program.
Subtitle C: Encouraging Small Businesses to Fully Engage in the Innovation Economy
· $200 million to provide grants to “growth accelerators” to assist small businesses.
Subtitle D: Increasing Equity Opportunities
· $20 million to establish an Emerging Managers Program to pair investment companies that have “emerging managers” with companies that have “substantial experience” operating in small business investment for guidance.
· $40 million for Microcap Small Business Investment Company License.
Subtitle E: Increasing Access to Lending and Investment Capital
· $1.9 billion to create a direct loan product under the current 7(a) lending program at SBA.
· $276 million to codify expand guaranteed lending under the SBA’s Community Advantage loan program, subprogram of the 7(a) lending program.
· $950 million to extend “temporary” fee reductions, enacted in the Consolidated Appropriations Act of 2021, through fiscal year 2026.
Subtitle F: Supporting Entrepreneurial Second Chances
· $100 million for a five-year pilot program to allow eligible cooperatives and employee-owned businesses to receive SBA guaranteed loans without the requirement of a personal or entity guarantee.
· $105 million to provide entrepreneurial training to currently and formerly incarcerated people.
Subtitle G: Other Matters
· $125 million for administrative expenses at SBA and $12.5 million for SBA’s inspector general.
Title XI: Committee on Transportation and Infrastructure
CBO estimates this title would result in direct spending budget authority totaling $39.3 billion and direct spending outlays totaling $36.1 billion over the 2022-2031 period.
· $9.9 billion for the secretary of housing and urban development and administrator of the Federal Transit Administration to provide competitive grants “to support access to affordable housing; enhanced mobility for residents and riders, including those in disadvantaged communities or neighborhoods, in persistent poverty communities, or for low-income riders generally.”
· $50 million for the FHWA to establish: a greenhouse gas performance measure that requires states to set targets to reduce greenhouse gas emissions; an incentive structure to reward states that make “the most significant progress” toward achieving emissions reductions; and undefined “consequences” for states that do not achieve reductions in their greenhouse gas emissions.
· $4 billion for FHWA to issue grants to eligible entities, including $950 million specifically for states, to reduce greenhouse gas emissions.
· $2.4 billion for FHWA to issue grants for a range of “neighborhood access and equity” projects and activities, including for those that: remove infrastructure; mitigate “negative impacts on the human or natural environment” from a surface transportation facility; or support planning and capacity building in disadvantaged and underserved communities.
· $1.6 billion for FHWA to issue grants for “neighborhood access and equity” projects specifically in economically disadvantaged communities.
· $320 million for the territorial and Puerto Rico highway programs.
· $47.5 million for a Traffic Safety Clearinghouse administered by the National Highway Traffic Safety Administration through cooperative agreements or contracts to collect information on ensuring equity in traffic safety enforcement.
· $10 billion for the secretary of transportation to facilitate funding for high-speed rail.
· $300 million for the secretary of transportation for grants to advance technology to mitigate aviation emissions and support aviation fuels that would mitigate emissions.
· $3.4 billion to the Economic Development Administration for economic adjustment assistance to “develop regional economic growth clusters.”
· $1.2 billion to the Economic Development Administration for economic adjustment assistance to make “recompete grants” to “persistently distressed local labor markets and local communities.”
· $240 million to EDA for economic adjustment assistance for energy and industrial transition communities.
· $240 million to EDA for economic adjustment assistance for technical assistance, project predevelopment, and capacity building to “local community organizations.”
· $500 million for the Federal Buildings Fund to transition buildings to “high-performance green buildings.”
· $145.5 million for grants enabling state, local, territorial, and tribal governments to establish and enforce hazard resistance building codes.
· $650 million to update Coast Guard infrastructure affected by climate change.
· $350 million for a Great Lakes icebreaker.
· $600 million for MARAD for grants to “support supply chain resilience, reduction in port congestion, the development of offshore wind.”
· $125 million for alternative water source project grants.
· Provides funding for several wastewater initiatives, including $500 million for EPA to provide sewer overflow and storm water reuse municipal grants; $1.35 billion to support projects in “financially distressed communities,” and $150 million for individual household decentralized wastewater treatment system grants.
· $50 million funding to the FHWA “environmental review implementation funds.”
· $900 million for FHWA to reimburse for “low-embodied carbon construction materials and products” used in certain transportation projects.
· $33 million for the Southwest Border Regional Commission.
Title XII: Committee on Veterans Affairs
CBO estimates this title would result in direct spending outlays totaling $5.0 billion and direct spending outlays totaling $4.8 billion over the 2022-2031 period.
· $2.3 billion for VA infrastructure investments.
· $455 million for VA to use enhanced-use lease authority.
· $1.8 billion for medical facility leases.
· $268 million to increase health professions residency positions at VA medical facilities.
· $150 million to address unscanned veteran records at the National Archives and Records Administration.
· $5 million to the VA Office of Inspector General for oversight of these investments.
Title XIII: Committee on Ways and Means
CBO estimates this title would result in direct spending budget authority totaling $420.4 billion and direct spending outlays totaling $412.1 billion over the 2022-2031 period and an increase in revenues of $1.2 trillion over the 2022-2031 period.
Subtitle A: Comprehensive Paid Leave Benefits
Creates an entitlement to four weeks a year of paid family and medical leave for every American worker and provides such sums as necessary to pay these benefits. The benefits would begin January 2024.
To qualify for paid leave, recipients must have recent wages or self-employment income of at least $2,000 and a qualified reason for leave, such as: a serious health condition; caring for a qualified family member with a serious health condition; the birth, adoption, or foster care placement of a child; or a family member’s military deployment. People are not required to provide a Social Security number when applying, nor do they need to be currently employed.
A qualified family member for whom caregiving credit may be provided includes: a spouse, including a domestic partner in a civil union or other registered domestic partnership recognized by a state, and a spouses’ parent; a child and a child’s spouse; a parent and a parent’s spouse; a sibling and a sibling’s spouse; a grandparent, grandchild, or spouse of a grandparent or grandchild; and any other person related by blood or affinity and whose association with the person claiming benefits is equal to a family relationship, as determined by the commissioner of Social Security.
The Social Security Administration will calculate benefits based on average weekly earnings using recent wage data, the number of weekly caregiving hours credited to them, and the number of hours in their typical workweek. The benefit is designed to replace a certain share of workers’ average earnings:
90% of the first $15,080, plus
73% of their earnings between $15,080 and $34,248, plus
53% of their earnings between $34,248 and $62,000.
These thresholds will be indexed in the future.
People will submit applications to the Social Security Administration, including self-attestations about the length of their regular workweek and if they anticipates having at least four caregiving hours in a week.
People will be eligible for paid leave benefits through either the new federal entitlement, an existing state program that has at least the same level of coverage and benefits, or an employer-based plan that meets standards prescribed in the bill.
Starting in 2025, provides annual grants to states with existing paid leave programs to cover the cost of their program or the amount of benefits people would have received under the new federal program if the state did not have a program, whichever is less.
In general, starting in 2024, employers with paid leave plans that meet the bill’s standards will be reimbursed for 90% of the costs. There are two means of reimbursement with different conditions, depending on whether they have insured plans or self-insure their plans.
Provides broad authority to the commissioner of social security to structure the leave program and adjudicate disputes.
Subtitle B: Miscellaneous Health Items
- Requires skilled nursing facilities and nursing facilities use registered professional nurses 24 hours a day, 7 days per week.
- Makes permanent the Independence at Home Medical Practice Demonstration Program and appropriates $60 million in FY 2022 to CMS to administer the program.
Subtitle C: Trade Adjustment Assistance
- Reauthorizes, significantly expands, and appropriates funding for Trade Adjustment Assistance programs − TAA for Workers, TAA for Firms, and TAA for Farmers − through 2025.
- TAA eligibility would no longer require that imports contributed “importantly” to the party’s harm. Eligibility extends to a worker or firm who faced international competition or did not benefit from anticipated international opportunities.
- Extends Trade Adjustment Assistance to federal, state, and local government workers.
- Establishes TAA for Communities and TAA for Community Colleges programs. Funds the new programs for $300 million for each of fiscal years 2022- 2025. The Obama administration asked TAA-for-communities to be defunded because it was ineffective.
- Increases benefits, e.g., job search allowances increase from $1,250 to $2,000, and payment for consultants for firms rises from $150,000 to $300,000.
- Adds new benefits and programs, such as a $2,000 child care allowance.
Subtitle D: Career Pathways and Social Services
- Provisions Relating to Pathways to Health Careers
- $25 million in FY 2022 and $27 million for each fiscal year 2023 to 2026 to HHS for technical assistance and administrative costs for Health Profession Opportunity Grants.
- Provisions Related to Elder Justice
- $417 million to states and $8 million to Indian tribes and tribal organizations for recruitment and retention of workers in post-acute and long-term care settings.
Subtitle E: Infrastructure Financing and Community Development
- Makes modifications to the Low Income Housing Tax Credit, including: increasing the state housing credit ceiling through 2025; requiring that at least 8% of the state housing credit ceiling be allocated to buildings with extremely low-income households; and converting the right of first refusal safe harbor into an optional safe harbor.
- Creates a “neighborhood homes” general business credit to subsidize new home construction and “substantial renovation.”
- Allows tribal governments to issue governmental and private activity bonds under a similar framework as state and local governments.
- Provides additional allocations of the New Markets Tax Credit for low-income communities in tribal statistical areas and extends the definition of “difficult development area” under the Low Income Housing Tax Credit to include any Indian area.
- Creates an economic activity credit for active business conducted in U.S. possessions.
- Exempts payments made to “socially disadvantaged farmers and ranchers” under Sections 1005 and 1006 of the American Rescue Plan Act from their gross income.
- Repeals a TCJA provision temporarily limiting deductions for personal casualty or theft losses to those attributable to a federally declared disaster.
Subtitle F: Green Energy
Renewable Electricity and Reducing Carbon Emissions
- Extends the Section 45 production tax credit for certain renewable resources through 2026 and expands the credit to once again include solar energy. Provides enhanced Section 45 credit rates for facilities that meet prevailing wage and apprenticeship requirements, use domestically produced steel, iron, or manufactured products, or are located in an energy community. Energy communities are census tracts in which a coal mine has closed after 1999 or a coal-fired electric generating unit has been retired after 2009.
- Generally extends the Section 48 energy investment tax credit through 2026. Expands credit eligibility to include energy storage technology, biogas property, microgrid controllers, electrochromic glass, and linear generators. Provides enhanced Section 48 credit rates for facilities that meet prevailing wage and apprenticeship requirements, domestic content requirements, or are located in an energy community.
- Creates a bonus energy investment credit for solar and wind facilities located in low-income communities.
- Allows for election of a direct payment in lieu of numerous energy tax credits.
- Creates an investment tax credit for electric transmission property placed in service through 2031 and provides an enhanced credit rate for projects that meet prevailing wage, apprenticeship, and domestic content requirements.
- Extends and modifies the credit for Section 45Q carbon oxide sequestration facilities through 2031; changes capture requirements and base credit rates for qualified facilities; and provides an enhanced credit for facilities that meet prevailing wage and apprenticeship requirements.
- Creates a production tax credit for nuclear power facilities, available through 2027, and provides an enhanced credit for facilities that meet prevailing wage and apprenticeship requirements.
- Extends the biodiesel, renewable diesel, and alternative fuel tax incentives through 2026, and the income tax credit for second-generation biofuels through 2026.
- Creates a tax credit for sustainable aviation fuels, available through 2026, which increases for every percentage point in lifecycle emission reductions that exceed 50%.
- Creates a production credit for clean hydrogen, available to facilities that begin construction before 2029, and provides an enhanced credit for facilities that meet prevailing wage and apprenticeship requirements.
Green Energy and Efficiency Incentives for Individuals
- Modifies the Section 25C credit for nonbusiness energy property and extends it through 2031.
- Extends the Section 25D credit for residential energy efficient property through 2033 and makes it refundable after 2023.
- Modifies the Section 179D deduction for energy-efficient commercial buildings and extends it through 2031 and provides an enhanced credit for multifamily facilities that meet prevailing wage and apprenticeship requirements during construction.
- Modifies and extends the Section 45L credit for new energy-efficient homes through 2031, and provides an enhanced credit for multifamily facilities that meet prevailing wage requirements during construction.
- Creates an income tax credit for 30% of expenses paid for wildfire mitigation with respect to real property.
Greening the Fleet and Alternative Vehicles
- Creates a new refundable credit for plug-in electric vehicles, changes to the current credit include: eliminating the 200,000 vehicle per manufacturer cap on sales of eligible EVs; increasing the base credit from $2,500 to $4000; and providing additional credits of $3,500 for vehicles with increased battery capacity, $4,500 for vehicles assembled in unionized facilities, and $500 for meeting certain domestic content requirements. Maximum EV credit under the legislation is $12,500. Filers earning up to $500,000 jointly or $250,000 individually may claim the full credit for qualifying electric vehicles costing up to $80,000. Credit is available through 2031.
- Creates new credits for used EVs and commercial electric vehicles, available through 2031.
- Extends and modifies the credit for alternative fuel refueling property through 2031, with enhanced credits for refueling property that meets certain prevailing wage and apprenticeship requirements.
- Repeals a TCJA reform by reinstating and expanding the income exclusion for bicycle commuting reimbursements. Also creates a refundable 30% electric bicycle credit for electric bicycles costing up to $4,000 through 2025.
Investing in the Green Workforce and Manufacturing
- Expands and modifies 30% credit for advanced energy projects through 2031; provides an increased credit rate for facilities that meet prevailing wage and apprenticeship requirements. Credit is subject to an annual limit of $5 billion per year through 2023, and $1.9 billion per year from 2024-2031.
- Creates an advanced manufacturing investment credit and advanced manufacturing production credit, providing bonus credit rates for facilities that meet certain labor standards.
- Creates a refundable tax credit for educational institutions that establish environmental justice programs and authorizes $1 billion in allocations annually through 2031.
- Reinstates the Superfund excise tax on domestic crude oil and imported petroleum products at a rate of 16.4 cents per gallon through 2031, beginning June 30, 2022.
Incentives for Clean Energy and Clean Transportation
- Beginning in 2027, provides a new, emissions-based incentive for clean energy technologies, allowing energy generating facilities to claim either a production credit or an investment credit, based on their carbon emissions. Facilities must have carbon emissions at or below zero to claim the credit. Increases the credit rate for facilities that meet certain prevailing wage and apprenticeship requirements, domestic content requirements, or are located in energy communities. Credit phases out the later of 2031 or when the electric power sector emits 75% less carbon than 2021 levels.
- Creates an emissions-based incentive for clean fuel production, available after 2026, based on lifecycle carbon emissions of the fuel. Increases the credit rate for facilities that meet certain prevailing wage and apprenticeship requirements. Credit phases out the latter of 2031 or when the electric power sector emits 75% less carbon than 2021 levels.
Subtitle G: Social Safety Net
Child Tax Credit
- Extends expanded Child Tax Credit provisions enacted in the American Rescue Plan Act through 2022, including monthly advance payments for joint filers making less than $150,000, and permanently extends full refundability, i.e., no work or income requirement. Permanently eliminates requirement that taxpayers must provide a Social Security number for children in order to qualify for credit, the principal effect of which would be to allow undocumented children to receive the credit. For 2022, allows people to use their 2021 income for purposes of calculating phase out thresholds if their 2021 income is lower than their 2022 income.
- Appropriates nearly $5 billion to the IRS and Treasury Department to administer the temporarily-extended Child Tax Credit.
Earned Income Tax Credit
- Extends through 2022 Earned Income Tax Credit provisions enacted in ARPA, including increased credit percentage and earned income amounts for taxpayers without children. Allows taxpayers to elect to calculate the EITC using their prior year earned income if the current year income is greater.
Expanding Access to Health Coverage and Lowering Costs
- Extends through 2025 the expanded subsidies for Obamacare plans first enacted temporarily in the American Rescue plan. This expansion has no income limitations on who can receive premium subsidies, increases the amount of subsidy for those already eligible, and provides subsidies that cover 100% of premium costs for individuals with incomes from 100% to 150% of the federal poverty level.
- Modifies certain eligibility rules and requirements for the premium tax credits until 2025 or until HHS certifies implementation of Medicaid, expanding eligibility to people with incomes below 100% of the FPL. The firewall between employer-sponsored insurance and ACA subsidies is eliminated for people with incomes below 138% of the FPL by allowing them to receive ACA tax credits even if they have access to employer-sponsored coverage or a qualified small employer health reimbursement arrangement.
- Erodes the firewall between employer-sponsored insurance and ACA subsidies by reducing the threshold for which employer-sponsored insurance is considered “affordable” from 9.83% to 8.5%.
- Through 2022, extends the subsidy enhancement for people who receive unemployment compensation which was included in American Rescue Plan Act. The provision also adjusts the income level for those who qualify as having an income of 150% of the federal poverty level.
- For people with incomes below 200%, reduces the recapture limitation of any advance premium tax credit that turns out to be more than the beneficiary was eligible; and exempts the beneficiary from having to file a return, reconcile, or repay advance payment of premium tax credits.
- Makes permanent the health coverage tax credit, which is available to people who are eligible for Trade Adjustment Assistance allowances due to a qualifying job loss or people whose pension plans were taken over by the Pension Benefit Guaranty Corporation. The provision also increases the amount of the tax credits from 72.5% to 80% beginning in 2022.
- Requires private insurers to cover at least one of each type and dosage form of insulin and requires that coverage of these insulin products before the application of any deductible and limits other cost sharing to no more than $35 per month.
Pathway to Practice Training Programs
- $6 million to establish the Rural and Underserved Pathway to Practice Training program for post-baccalaureate and medical students. First-generation college or professional students, Pell Grant recipients, and people who have lived in underserved, rural or health professional shortage areas would be eligible to receive these scholarships.
- Creates a public university research infrastructure credit, a general business credit equal to 40% of an entity’s contribution to the purchase, construction, and or improvement of “research infrastructure property” at public institutions of higher education. Directs the secretary of education to establish a program to certify and allocate credits and provides a credit allocation of $500 million annually from 2022-2026.
- From 2022-2025, excludes Pell grant income used to pay expenses in addition to qualified tuition and related expenses, such as student expenses for room and board paid, from the federal income tax.
- Repeals American Opportunity Tax Credit restriction for students who have been convicted of a federal felony drug possession or distribution offense.
Deduction for State and Local Taxes
- Extends the limit on state and local tax deductions, currently set to expire in 2025, through 2031. Increases the deduction cap from $10,000 to $80,000 through 2030. Makes increase retroactive to 2021.
Subtitle H: Responsibly Funding Our Priorities
Corporate and International Tax Reforms
- For tax years beginning after 2022, imposes a 15% minimum tax on the financial statement income for corporations that have average adjusted financial statement incomes exceeding $1 billion over a three-year period.
- Beginning in 2022, levies a 1% excise tax on the fair market value of certain repurchases of stock by a publicly traded U.S. corporation.
- Beginning in 2023, imposes a worldwide limitation on interest deductions, allowing companies to deduct only a proportionate amount of interest in the United States relative to their domestic earnings.
- Beginning in 2023, increases the statutory tax rate for foreign-derived intangible income and global intangible low-taxed income.
- Beginning in 2023, limits foreign tax credits on a country-by-country basis; repeals FTC carrybacks.
- Requires corporations to determine GILTI on a country-by-country basis.
- Expands the scope of corporations subject to the Base Erosion and Anti-abuse Tax; modifies BEAT liability calculation and increases BEAT rate after 2022.
- Limits credit for orphan drug clinical testing expenses to expenses related to first use of drug.
Tax Increases for High-Income Individuals
- Beginning in 2022, further applies the 3.8% net investment income tax to S corporation shareholders, limited partners, and LLC members with incomes over $400,000 individually or $500,000 jointly.
- Makes permanent the limitation on excess business losses for noncorporate taxpayers.
- Beginning in 2022, imposes a 5% tax on individual income above $10 million and estate or trust income over $200,000. Imposes an additional 3% tax on individual income over $25 million and estate or trust income over $500,000.
Modifications of Rules Relating Retirement Plans
- Beginning in 2029, imposes a $10 million limit, increased for cost-of-living adjustments, on certain retirement accounts, including IRAs. Increases minimum required distributions for accounts with balances in excess of $10 million. Makes provisions applicable for single filers earning more than $400,000 and married filers earning more than $450,000. Includes additional provisions related to IRAs.
Funding the Internal Revenue Service and Improving Taxpayer Compliance
- Provides more than $79 billion in mandatory additional appropriations to the IRS and related agencies to strengthen tax enforcement and modernize IT, including $44.9 billion for enforcement, $27.4 billion for operations, $1.9 billion for taxpayer services, $4.8 billion for business systems modernization, and $15 million for a study to establish a “free” e-file system. Requires the IRS, after receiving the increased appropriations, to submit a plan to Congress on how the funds will be spent. Provides additional funding to the treasury inspector general, Office of Tax Policy, and U.S. Tax Court. Includes language with an unenforceable stipulation that, “nothing in this subsection is intended to increase taxes on any taxpayer with a taxable income below $400,000.”
- Provides the secretary of the treasury with direct hire authority and other federal hiring flexibilities.
- Extends the coal excise tax, which funds the Black Lung Disability Trust Fund, through 2025.
- Makes up to $150,000 of qualified sound recording productions eligible for the film and television production tax credit through 2025.
- Provides an above-the-line deduction for up to $250 of a filer’s dues to a labor organization.
- For tax years 2022-2025, increases the credit for employer-provided child care.
- Creates a payroll tax credit on up to $12,500 of wages paid during any calendar quarter to “local news journalists” by local newspapers or broadcast stations through 2025.
- From 2022-2024, creates an above-the-line deduction for up to $250 in purchases of employee uniforms.
- Doubles the current $250,000 limitation for the small businesses payroll tax research credit.
- Imposes a new tax on nicotine, unless it is approved by the FDA for sale as nicotine replacement therapy.
- Repeals after 2023 employer credit for paid family and medical leave enacted in the Tax Cuts and Jobs Act.
Subtitle I: Drug Pricing
- The legislation would create a so-called Drug Price Negotiation Program, under which the secretary of health and human services would select a set of drugs each year – a maximum of 10 for the first year of negotiation, 15 for the second and third years, and 20 for each subsequent year, along with all insulin products every year – to subject to the program’s price-setting scheme. “Negotiated” prices would be capped based on declining ceilings, with no floor available for most drugs selected, with a limited, short-term exception for certain medications produced by small biotechs.
“Negotiations” for the first cohort of medicines would begin in 2023, with the resulting prices slated to take effect for plan year 2025 (the program would create two-year cycles). The legislation would require manufacturers to offer the resulting “maximum fair prices” across Medicare Parts B and D.
For manufacturers out of compliance with the bill’s timelines or requirements, the legislation would exact a constitutionally suspect and unprecedented penalty on gross sales across all markets, beginning at 65% and rising to 95%.
Price increases in excess of ordinary inflation would be prohibited for selected drugs, and failure to offer MFPs to eligible purchasers would result in steep civil monetary penalties.
Ties mandatory price ceilings under the new program to the non-federal average manufacturer price for selected products: 75% of the non-federal AMP for products on the market fewer than 12 years; 65% for drugs on the market at least 12 but fewer than 16 years; and 40% for medications on the market 16 or more years. It would link Medicare-mandated prices to a benchmark used to calculate the ceiling for price negotiations undertaken by the veterans affairs secretary.
Provides $3 billion to carry out implementation of this program.
Under the legislation, stakeholders would have no recourse to redress grievances, even in the event of administrative malfeasance in implementing the program, since the proposal bars judicial and administrative review with respect to the selection of drugs for the price-setting program, the determination of mandated prices, and a range of other core components of the new system.
- Beginning with respect to 2023, the bill would impose sweeping price controls on both physician-administered drugs and retail prescription drugs across virtually all markets, requiring manufacturers to either limit product price increases to at or below the rate of general inflation, or else to pay steep penalties to the federal government.
- Restructures the standard benefit design of Medicare Part D to shift liabilities and cap beneficiary out-of-pocket costs at $2,000 per year.
- Beginning in 2026, repeals the Trump administration’s Rebate Rule, which aimed to bar post-sale rebates paid by manufacturers to Part D plans and to promote point-of-sale discounts.
Subtitle J: Supplemental Security Income for the Territories
- Allows U.S. territories – Puerto Rico, Guam, the United States Virgin Islands, and American Samoa – to participate in the Supplemental Security Income program.
The Congressional Budget Office estimates the bill will result in a net increase in the on-budget deficit totaling $389.2 billion, not counting any additional revenue that may be generated by additional funding for tax enforcement, over the next decade: 2022-2031.