On Monday, President Joe Biden unveiled his annual budget, a comprehensive plan that not only outlines his policy priorities but also serves as a cornerstone of his reelection campaign set for November. This budget encapsulates a series of initiatives that have long been championed by Biden and his Democratic allies in Congress. Among these are proposals to increase taxes on large corporations and affluent individuals, reduce costs for middle-class Americans, lower prescription drug prices, and support families with the expenses of child-rearing. These proposals were also highlighted in his recent State of the Union address.
Despite the ambitious nature of these proposals, their passage through the Republican-dominated House remains uncertain. Nevertheless, they provide President Biden with a platform to differentiate his vision from that of his likely opponent, former President Donald Trump, whom Biden criticizes for favoring the wealthy and large corporations.
The budget, amounting to $7.266 trillion, outlines Biden’s strategy to bolster Medicare and projects a deficit reduction of $3 trillion over the next decade. This reduction is anticipated to fund new investments, as detailed in a White House fact sheet.
Key highlights of President Biden’s fiscal year 2025 budget proposal include:
**Lowering Drug Prices**: Building on the Inflation Reduction Act’s drug price measures, the budget seeks to expand Medicare’s ability to negotiate drug prices and to implement these negotiations sooner after drugs are launched. It also proposes extending the $35 monthly cap on out-of-pocket insulin costs and a $2,000 annual limit on prescription drug expenses to the broader market, alongside rebates for drugs that increase in price faster than inflation.
**Tax Cuts for Families and Workers**: The budget aims to temporarily reinstate the expanded child tax credit from the 2021 American Rescue Plan Act, potentially lifting 3 million children out of poverty and reducing taxes for 39 million low- and middle-income families. Additionally, it seeks to enhance the earned income tax credit for childless workers.
**Addressing the Housing Affordability Crisis**: With a proposed investment exceeding $258 billion, the budget aims to significantly increase the availability of affordable housing in the U.S. It includes tax credits for homeowners and first-time buyers, alongside a new First-Generation Down Payment Assistance program.
**Reducing College Costs**: The budget proposes $90 billion to make two years of community college free and to expand the Pell grant program. It also suggests eliminating loan origination fees and introducing a $12 billion fund to reduce college expenses.
**Enhancing Border Security**: Reiterating a $13.6 billion request, the budget includes funding for additional Border Patrol agents, Customs and Border Protection officers, and asylum officers, as well as technology for detecting contraband at ports of entry.
**Extending Affordable Care Act Subsidies and Children’s Coverage**: The proposal seeks to permanently expand federal premium subsidies for Obamacare policies and to extend Medicaid or CHIP eligibility for children to 36 months.
**Tax Reforms for the Wealthy and Corporations**: The budget proposes a 25% minimum tax on the wealthiest Americans and seeks to increase the corporate tax rate to 28%. It also aims to close loopholes that allow multinational companies to minimize their tax liabilities.
**Strengthening Medicare and Social Security**: The budget reiterates plans to shore up Medicare’s finances and emphasizes principles to protect Social Security benefits without cutting them.
**Supporting Families**: Biden’s budget includes proposals for a national paid family and medical leave program, affordable child care, and increased funding for the Child Care and Development Block Grant.
**Investing in Clean Energy and Infrastructure**: The budget calls for significant investments in clean energy projects and infrastructure, including funding for the American Climate Corps.
**Advancing Cancer Research and Home Energy Assistance**: An additional $2 billion is allocated for cancer research, and $4.1 billion is proposed for the Low Income Home Energy Assistance Program (LIHEAP).
**Nutrition Assistance and Education**: The budget includes funding for nutrition programs and proposes universal free preschool for 4-year-olds, along with increased funding for Head Start.
This budget represents President Biden’s vision for a more equitable, sustainable, and prosperous future for all Americans, emphasizing investments in the nation’s health, education, and infrastructure while seeking to ensure the wealthiest and corporations pay their fair share.