Senate Democrats on the Budget Committee agreed to set a $3.5 trillion top-line spending level for a bill to carry most of President Joe Biden’s economic agenda into law without Republican support, bridging divisions—for now—among some party factions.
Democrats on the committee had been divided about the size and scope of the package, with Chairman Bernie Sanders initially pushing a $6 trillion measure that added an expansion of Medicare, immigration reform, more generous childcare benefits along with other items to Biden’s proposal.
The Budget Committee agreement includes Medicare expansion, marking a significant win for Sanders. Senator Mark Warner of Virginia, a moderate, said the bill would be “fully paid for.”
“We are very proud of this plan,” Majority Leader Chuck Schumer, a New York Democrat, said late Tuesday. Schumer said it would include dental, hearing and vision benefits for Medicare recipients but didn’t detail whether a proposal to lower the eligibility age will be included or if a separate proposal to lower prescription drug prices is in the plan.
The draft budget proposal does not yet have the support of all 50 members of the Democratic caucus and could be changed further once moderates and progressives weigh in. House Democrats are coordinating with Sanders’s committee but have not yet announced whether they support the new agreement.
“There are no details for the proposal, so I will not venture an opinion until I see them,” House Budget Chairman John Yarmuth said Wednesday. “I look forward to seeing those details and discussing the plan with my House colleagues.”
The $3.5 trillion top line is in addition to a bipartisan infrastructure plan that Biden has endorsed, which comes in at $579 billion. The total long-term economic agenda would top $4 trillion.
Biden plans to go to Capitol Hill on Wednesday to discuss the plan. The president did not immediately endorse it publicly, but White House economic adviser Brian Deese and chief legislative liaison Louisa Terrell attended the Tuesday night meeting.
White House Press Secretary Jen Psaki said in a Wednesday morning tweet that Biden looked forward to making the case for the two-track approach during his meeting with Senate Democrats as a way “to build the economy back better by investing in infrastructure, protecting our climate, and supporting the next generation of workers and families.”
Though the Senate resolution falls $2.5 trillion short of Sanders’s original proposal, the Vermont independent called it “the most significant piece of legislation to be passed since the Great Depression and I’m delighted to be a part of it.”
Senate Finance Committee Chairman Ron Wyden told reporters discussions are ongoing about how pieces of the agenda would be paid for, and many details will be determined later. The resolution will prohibit tax increases on people making less than $400,000 a year and on small businesses, according to a Democratic aide familiar with it.