/https://specials-images.forbesimg.com/imageserve/60a80996cb9c8e54d80a70d8/0x0.jpg?cropX1=0&cropX2=2193&cropY1=110&cropY2=1344)
President Biden is set to propose a federal budget that calls for $6 trillion in spending in the 2022 fiscal year, with deficits running above $1.3 trillion a year over the next ten years, the New York Times first reported Thursday, raising federal spending to its highest levels since World War II amid the fallout of the coronavirus pandemic.
Getty Images
Biden has proposed two ambitious federal spending plans–the American Jobs Plan and the American Families Plan–that are designed to revitalize the American economy through investments in infrastructure and the “care economy.”
Much of the increase in spending in his 2022 budget is driven by those two proposals along with other increases in discretionary spending, the Times reported.
Biden has proposed paying for those two proposals over 15 years with tax hikes on corporations and wealthy Americans.
The power to approve the spending Biden requests ultimately lies with Congress.
$1.8 trillion. That’s how much the federal deficit would be in the 2022 fiscal year under Biden’s proposed budget, according to the Times. During the 2020 fiscal year, the final year of President Trump’s term, the federal deficit totaled an eye-watering $3.1 trillion thanks to massive spending on coronavirus response and relief measures. Biden’s proposed budget would also push total debt held by the public up to 117% of the size of the economy over a decade, the Times reported, with debt as a share of the economy reaching record levels exceeding those seen during World War II.
The Washington Post reported last week that Biden’s budget will exclude several of his flagship campaign promises, including a plan to cut prescription drug costs. Student loan forgiveness is also expected to be excluded, as is a plan to raise the estate tax, according to the Post. The Times reported that Biden’s plan to overhaul the American unemployment insurance program is also excluded.
Biden’s official budget request is expected to be released Friday.
Biden to Propose $6 Trillion Budget to Boost Middle Class and Infrastructure (New York Times)
White House budget plan set to leave out some health care proposals from campaign (Washington Post)
