Congressional Democrats release FY 2021 budget resolution

Congressional Democrats, FY 2021 budget resolution

Democrats in the U.S. House of Representatives today released their FY 2021 budget resolution.


Related content

Importantly, this resolution includes reconciliation instructions for use in developing and enacting further COVID-related emergency legislation. House Speaker Nancy Pelosi issued a press release stating that the new budget resolution instructs congressional committees to craft legislation to enact President Biden’s $1.9 trillion comprehensive American Rescue Plan to “…provide urgent and targeted funding for fiscal year 2021 to defeat the virus and provide workers and families the resources they need to survive the pandemic while the vaccine is distributed to every American.”

The budget calls for $1.9 trillion in additional deficit spending to address the coronavirus (COVID-19) pandemic, of which $941 billion would be allocated to the House Ways and Means Committee (which has jurisdiction over a number of policy areas, including tax legislation). It is anticipated that tax provisions would include an additional $1,400 payments for individuals along with tax credits for families.

The budget resolution, if approved, will instruct the Ways and Means Committee and 11 other House committees to report their portion of the reconciliation legislation to the Budget Committee by February 16, 2021.

Senate Majority Leader Schumer (D-NY) has indicated that an accompanying bill will be introduced in the Senate today.

It is unclear when the budget resolution would be voted upon by the full House and Senate.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal