The White House will release President Joe Biden’s in-depth budget proposal to Congress today.
Biden’s budget plan is expected to include significant insights regarding the White House’s medium- to long-term priorities for the American economy. It comes on top of a $1.5 billion “skinny” budget released in April for funding only through fiscal year 2022 and a colossal $1.9 billion COVID-19 relief bill.
Expect the administration’s proposed budget to advocate for substantial funding for an overhaul of US infrastructure and investments in clean energy. Biden’s budget will call for significant expenditure on carbon capture technology, solar and wind power plants, electric vehicles and a novel tax plan that swaps fossil subsidies for clean energy incentives.
Seeking to secure bipartisan support, expect Biden to make concessions—especially regarding the termination of fossil fuel subsidies. The White House’s envisioned budget will already fall short on key Biden campaign promises—mostly in the health and education sector. With Democrats controlling both chambers of Congress, expect Biden to secure funding for energy transition infrastructure. However, Republicans opposition, vulnerable Democrats in states with large fossil fuel industries and oil and gas sector lobbying may lead the administration to reconsider completely ending fossil fuel subsidies.
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Sinan is an analyst for the Current Developments Team and a regular contributor to the Daily Brief. A student of transatlantic affairs, he specialises in political, economic and energy affairs of Europe and the Middle East.