Biden’s $1.75 Trillion Social Welfare Legislation May Cost Nearly $5 Trillion If Programs Are Made Permanent

A new analysis says that President Biden’s Build Back Better legislation would cost $4.9 trillion — well above its public $1.75 trillion price tag.

After Democratic leadership had difficulty winning moderate lawmakers like Sen. Joe Manchin (D-WV) and Sen. Kyrsten Sinema (D-AZ) to their $3.5 trillion reconciliation bill, a smaller package was introduced. The most recent versionof the legislation drops paid family leave, but retains universal preschool, childcare subsidies, and climate change initiatives.

Though the bill has a $1.75 trillion face value, the Committee for a Responsible Federal Budget released a report on Monday stating the true cost may be $4.9 trillion due to a number of “arbitrary sunsets and expirations.”
The Build Back Better Act relies on a number of arbitrary sunsets and expirations to lower the official cost of the bill. These include extending the American Rescue Plan’s Child Tax Credit (CTC) increase and Earned Income Tax Credit (EITC) expansion for a year, setting universal pre-K and child care subsidies to expire after six years, making the Affordable Care Act (ACA) expansions available through 2025, delaying the requirement that businesses amortize research and experimentation (R&E) costs until 2026, and setting several other provisions – from targeted tax credits to school lunch programs – to expire prematurely…