Earlier today, the House of Representatives passed the $3.5 trillion budget blueprint. If it passes the Senate, it would be the largest change to social welfare since President Johnson's Great Society of the 1960s. It also set the vote date for the $1 trillion infrastructure bill for September 27th, giving business more time to apply for Targeted EIDL grants.
How Did the $3.5 Trillion Budget Set the Stage For the Infrastructure Bill?
Speaker Pelosi and Democratic centrists in the House have been stuck in an impasse regarding the infrastructure and budget blueprint. Centrists stated that they would not vote on the budget until the infrastructure bill was voted on.
Conversely, Speaker Pelosi repeatedly claimed that she would not allow a vote on the infrastructure bill without a vote on the budget. Today they managed to end that impasse. Pelosi agreed to schedule the vote on the infrastructure bill for September 27th. In return, the centrists agreed to vote for the budget blueprint. It barely passed along party lines with 220 votes for and 212 votes against.
Republicans took issue with the process and the amount of spending it will release. Jim Banks, Republican Study Committee Chairman, commented on the budget process by saying, “It’s a legislative gimmick to allow them [Democrats] to run something through the process that should never be handled that way."
How Will This Affect Small Businesses?
The infrastructure deal passed the Senate earlier this month and House will vote on the bill on September 27th. The infrastructure plan is set to take over $17 billion from the Targeted EIDL pool, essentially draining it of funds.
The infrastructure bill needs to pass the Senate and be signed by President Biden before any of the Targeted EIDL funds can be touched. The SBA is still awarding Targeted EIDL grants, so if you live in a low-income area, you can still apply. Many have pointed out that the low-income requirement severely restricts the number of eligible businesses. However, if you do qualify, there is still time to apply.
Will the Senate Pass the $3.5 Trillion Budget?
The passage of the budget in the House opens the door for a process called budget reconciliation. In short, this enables Democratic Senators to pass the budget with only 50 votes (and the tie-breaking vote of Vice President Harris), instead of the typical 60 required for legislation.
Senator Joe Manchin has expressed his concern over the budget, stating that is it "simply irresponsible to continue spending at levels more suited to respond to a Great Depression." Democratic Senators will need his support (and the support of other centrists in the Senate) to pass it through budget reconciliation.
What Is In the $3.5 Trillion Budget?
The proposed budget blueprint includes a substantial amount of funding for social welfare programs. The funds would be used for universal Pre-K for 3 and 4 year-olds, down payment assistance for prospective home buyers, a clean electricity payment program, climate research, paid family leave, expanded Medicare to cover dental, hearing, and vision, and much more.
Conclusion
With the passing of the budget blueprint in the House, it now moves to the Senate where it will face more scrutiny. The Senate is split 50-50, so Democrats who want to pass this budget plan will need every vote.
Joe Manchin and other centrists signaled that changes would need to be made before they would support the bill, so it may be a while before any decision is made. Meanwhile, the House will vote on the infrastructure bill on September 27th, giving small businesses more time to apply for Targeted EIDL grants.
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