Biden Announces Official $1.75 Trillion Build Back Better Proposal

Although no official deal has been reached, President Joe Biden will lay out an economic plan Thursday morning that he believes Democrats should all be able to support, according to senior administration officials.

Biden is heading to Capitol Hill on Thursday to speak to the House Democratic Caucus about his Build Back Better agenda and the Bipartisan Infrastructure Deal before leaving for his second overseas trip since taking office. While there, he’ll announce a framework for the Build Back Better Act and call for the passage of both plans. Then, Biden will return to the White House to detail his official proposal to the American people, officials said.

“The president believes this framework will earn the support of all 50 Democratic senators and pass the house,” one senior administration official said, though officials declined to specify whether the plan has already been officially been agreed upon by all members of the party.

Biden’s latest proposal has a $1.75 trillion price tag, which is far lower than its original $3.5 trillion price tag. The cost is far closer to what Democratic West Virginia Sen. Joe Manchin, one of the moderates the White House needs on board, wanted than what progressives wished for.

The plan includes investments in children and caregiving, efforts to combat climate change, an expansion of affordable health care coverage and more. Still, the proposal drops some key ideas originally pushed by Biden, like his plan to address the cost of prescription drugs.

Addressing Child Care And Families

Biden’s multi-faceted plan includes universal preschool to all 3-and-4-year-olds. This would be fully funded for six years under Biden’s Build Back Better agenda, officials said. As for child care, Biden’s proposal aims to limit the cost for families to no more than 7% of income for those earning up to 250% of the state median income. (RELATED: Republicans Go After Biden For Claiming Massive Build Back Better Agenda ‘Costs Zero Dollars’)

The plan for child care includes an important provision and would be funded for six years: In order to be eligible, parents must be working, looking for work, participating in training or dealing with a serious health injury, officials explained. Biden’s proposal also expands the current child tax credit for households earning up to $150,000 per year for one year.

Climate Change Provisions

Biden’s official proposal includes $555 billion in investing in clean energy and combatting climate change. The plan includes $320 billion for clean energy tax credits, $105 billion in investment to address extreme weather across America, $110 billion in investments for clean energy and supply chains as well as $20 billion towards incentivizing the government to buy clean energy technologies.

Affordable Care, Housing And Education

The president is also proposing extending the Affordable Care Act’s premium tax credits through 2025 and having Medicare cover the cost of hearing for seniors. As for housing, Biden wants $150 billion to go towards housing affordability, building more rental units, helping with down payments, public housing initiatives and more.

The Build Back Better Agenda also calls for a one year extension to the current Earned Income Tax Credit for those without children as well as putting money towards “equity,” which is described as including community violence efforts and making the supply change more resilient.

In total, the proposal puts $400 billion towards child care and preschool, $150 billion towards home care initiatives, $200 billion for child tax and earned income tax credits, $130 for the premium tax credit, $35 billion for a Medicare hearing plan, $150 towards housing, $40 billion dedicated to higher education and the workforce, $90 billion towards topics like equity and the $555 billion aimed at climate.

Notably, the president also wants a separate $100 billion investment in “immigration reform,” according to senior administration officials. This money would go towards reducing backlogs, expanding legal representation and making the system for asylum and border processes more efficient.

“This will be a historic step forward for the American people,” an official declared.

This is a breaking piece and will be updated.

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