Biden's spending plan could cost nearly $5T if made permanent, analysis shows
President Biden has unveiled a framework for a modified social spending plan that imagines spending close to $1.75 trillion over the next decade, but budget experts say the true cost of the legislation would be closer to $5 trillion because of the way the programs are structured.
The newest "Build Back Better" proposal – pared down from the original $3.5 trillion request – would expand Medicaid, establish universal preschool, provide new funding for child care and offer green energy tax credits, though it notably omits progressive priorities like free community college and Medicare coverage of dental and vision. It relies on $1.95 trillion in new taxes, including a 15% corporate minimum and a surcharge aimed at ultra-millionaires.
But findings from the Committee for a Responsible Federal Budget, a nonpartisan group, released on Monday suggest Biden's plan could actually cost more than $4.9 trillion in a scenario where the spending and revenue provisions are made permanent, nearly doubling the size of the legislation.