Biden unveils $3.5 trillion budget plan for new economic spending

By Yashasvini Razdan, 4:34 PM ET

Stepping up his bid to rally support for his multitrillion-dollar domestic plans through Congress, President Joe Biden will be meeting the Senate Democrats. This news comes a day after the party leaders announced a compromise for pouring federal resources into climate change, health care, and family service programs.

On Tuesday, the Democrats announced that the $3.5 trillion budget accord, spent over the next decade, will be added to the roughly $600 billion in new spending contained in a bipartisan infrastructure plan, reported CNBC.

Senate Majority Leader Chuck Schumer, D-N.Y said, “At a closed-door caucus lunch at the Capitol on Wednesday, Biden will rally Democrats and “lead us on to getting this wonderful plan.”

The Washington Post compared Biden’s ambitious vision with the New Deal of the 1930s. The Democrats intend to push a budget resolution that builds on Tuesday’s agreement through the House and Senate before the August recess. The resolution outlines the broad spending and revenue parameters, without mentioning the actual funding and specific decisions about the programs, leaving them for later legislation.

If approved, the resolution would allow the passage of the spending bill in the Senate during the budget reconciliation process. The Senate is evenly into 50 Republicans and 50 Democrats. The Latter would need a simple majority with all 50 Democrats supporting the bill with no Republican support, as Democratic Vice President Kamala Harris could cast the tie-breaking vote.

The budget keeps up Biden’s promise to not raise taxes for people earning less than $400,000 annually.

(Inputs from CNBC)