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