On Thursday, President Joe Biden unveils his Build Back Better framework, advancing the landmark proposal into what will likely be its final phase before approval. The plan’s original $3.5 trillion budget resolution now sits at $1.75 trillion, unveiling scaled-back initiatives to tackle climate change and other social services.
In its latest budget proposal, the White House’s total investment in fighting climate change remains relatively the same, sitting at $550 billion. What’s changed the most is how those funds will be used: focusing on manufacturing, electric power, and transportation.
The new framework includes $320 billion of expanded tax breaks over the next ten years to support clean energy and electric vehicle adoption. The framework specifically focuses on clean passenger and commercial vehicles, but it’s unclear if the credit applies to e-bikes as well.
An additional $105 billion has been set aside to address climate resiliency in communities affected by natural disasters and to reduce pollution in low-income areas. The White House also outlined $110 billion in incentives to create new supply chains and technologies, like solar batteries, and advanced materials.
The new framework also includes hundreds of billions for social programs and healthcare subsidy expansion, including $400 billion for child care and universal preschool, $200 billion for expanded child and earned income tax credits, and $150 billion for affordable housing.
While still transformative, the new Build Back Better framework no longer includes key programs like the Clean Electricity Payment Program, an important measure to create a 100 percent clean energy grid.
The program would have paid utility providers if they achieved certain clean energy standards and enforce these rules through fines if they didn’t.
The climate plan no longer includes a fee on methane use as well.