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President Biden Releases $6 Trillion Budget Proposal

  • 2021-06-17T15:00:00.000+0000
  • Author: Laure Fabrega

On May 28, President Biden released its FY2022 budget proposal, totaling $6 trillion. The document calls for a 1.6 percent increase in defense spending and 16.5 percent increase in non-defense spending, with all agencies receiving budget increases. The Department of Education would receive the largest percentage increase at 40.8 percent.

The Department of Health and Human Services (HHS) would be funded at $133.7 billion, a $25.3 billion or 23.4 percent increase. The budget calls for $50.5 billion for the National Institutes of Health (NIH), a $9 billion increase, $8.5 billion for the Centers for Disease Control and Prevention, a $1.5 billion increase, and $3.6 billion for the Food and Drug Administration, a $322 million increase.

Of note, the budget also calls for the creation of an Advanced Research Projects Agency for Health (ARPA-H) within NIH ($6.5 billion). The proposal also expressed support for drug pricing reform, a public insurance option, lowering Medicare age, removing the Hyde amendment, and doubling funding for gun research at CDC and NIH.

The budget reflects proposals from the American Jobs Plan and the American Families Plan. The document asks for tax changes that would raise $3.6 trillion in new revenue ($2.4 trillion net) over a decade by increasing the corporate tax rate to 28 percent, increasing the global minimum tax to 21 percent, limiting inversions, and increasing the capital gains tax rate and top marginal income tax rate for high-earning households, among others. It does not include an expansion of the state and local tax (SALT) deductions above the current $10,000 cap, as many Democrats in high-tax states had advocated for.