Biden to announce $1.75T reconciliation framework deal, sources say
There's no legislative text yet for the reconciliation bill
President Biden is expected to tell congressional Democrats Thursday morning that they've reached an agreement on a framework for a $1.75 trillion reconciliation bill.
Biden traveled to the U.S. Capitol for House Democrats' caucus meeting at 9 a.m. ET.
The goal of the announcement will be to enable progressives, who have been blocking the bipartisan infrastructure bill, to stop their blockade and let the bill pass before Biden goes to a climate summit in Scotland.
But many progressives, including Congressional Progressive Caucus Chair Rep. Pramila Jayapal, D-Wash., have said a framework will not be enough to secure their votes for infrastructure. It's unclear whether House Speaker Nancy Pelosi, D-Calif., will be able to keep enough progressives on board with the bill for it to pass. There is no Congressional Budget Office score or legislative text.
House Speaker Nancy Pelosi of Calif., arrives for a meeting with House Democrats on Capitol Hill in Washington, Tuesday, Oct. 26, 2021. (AP Photo/Andrew Harnik) | AP Newsroom
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The reconciliation framework will include an estimated $1.995 trillion pay-fors, including a tax on stock buybacks, efforts by the IRS to stop tax dodgers and more.
The plan will also include a child tax credit, universal preschool, and a modified Medicaid expansion, among other things. Notably not in the plan are universal community college, paid family leave, and other policies.
"The president believes this framework will earn the support of all 50 Democratic senators and pass the House," a senior administration official said of the plan Thursday morning. "He will defer to Speaker Pelosi… on the specific timing of votes, but he will be full-throated that he believes each of these bills should pass when they come."
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An official added: "We're not going to speak for any lawmakers from here… But our bottom line is we are confident that this will earn the support of every Democratic senator pass the House."
The White House estimates that its plan will cost $1.75 trillion, and that its pay-fors would raise $1.995 trillion. There is no bill text to these claims have not actually been evaluated by the Congressional Budget Office or any independent watchdogs.
Among the pay-fors will be a 15% corporate minimum tax ($325 billion) ; a 1% surcharge on corporate stock buybacks ($125 billion); a global minimum tax of 15% and a penalty for foreign companies that are based in countries without a minimum tax ($350 billion); a millionaires and billionaires surtax ($230 billion); closing a Medicare tax loophole ($250 billion); increased IRS enforcement aimed at the wealthy ($400 billion); limiting tax deductions for business losses for wealthy people ($170 billion); and the repeal of the prescription drug rebate rule ($145 billion).
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Biden will also give remarks "about the path forward for his economic agenda and the next steps to getting it done" at 11:30 a.m., according to the White House.