• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Politicsbudget Deal

Democrats are trimming the Build Back Better agenda to $1.9 trillion. What’s in, out, and still in play

Megan Leonhardt
By
Megan Leonhardt
Megan Leonhardt
Down Arrow Button Icon
Megan Leonhardt
By
Megan Leonhardt
Megan Leonhardt
Down Arrow Button Icon
October 20, 2021, 12:30 PM ET

President Joe Biden and congressional Democrats met Tuesday to work on winnowing down the initial $3.5 trillion budget to a spending plan between $1.9 trillion and $2.2 trillion. 

The meetings come after senators Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Ariz.) have firmly refused to support the $3.5 trillion price tag. With Democrats facing only a slim majority in the House and Senate and no Republican support for Biden’s agenda, leaders are forced to get every Democrat on board in order to pass this legislative package. 

Manchin has consistently said since summer he’ll support a $1.5 trillion bill. Sources told Punchbowl News that a “realistic target” for the reconciliation package is probably somewhere in the $1.75 trillion to $1.95 trillion range.

But cutting the bill in half means that not all of the president’s agenda will make the final cut and that many programs will have to be significantly trimmed. Here’s where many of the popular proposals stand as of Tuesday night. 

Free community college: Out. Biden said last week that his plan to provide two years of free community college was on the chopping block. However, a proposed Pell Grant expansion is still in play. 

Carbon tax: Out. At this point, no one believes this will be in the final bill.

State and local tax deductions: Out, according to Washington Post’s Jeff Stein. Several lawmakers called for the so-called SALT deductions to be reinstated as part of the Build Back Better package. These deductions had been cut under the 2017 Tax Cuts and Jobs Act.

Universal pre-K: In. The plan still calls for free pre-kindergarten for 3- and 4-year-olds, a program the White House has said will benefit 5 million children.

Child tax credit: In, but reduced. The latest discussions call for extending the child tax credit for another year or two (not the permanent expansion some progressive Democrats have called for and less than the four-year plan Biden called for). And while Manchin has toyed with the idea of including a means test, so far that’s not on the table and the credit would be fully refundable. 

Home health care: In, but reduced. CNN’s Manu Raju reports the latest talks have $250 billion set aside for home- and community-based services. Previously, Biden had called for $400 billion in spending to help meet these long-term health needs. 

Housing assistance: In, but reduced. So far, there seems to be $200 billion allocated for public housing. Democrats initially proposed spending $330 billion for a wide range of housing assistance programs, including down payment assistance, public housing vouchers, and new construction funding. 

Paid leave: In, but reduced. Under the latest proposal, Americans would have access to up to four weeks of paid family leave, although it would be phased out for Americans earning over $100,000. This is substantially less than the originally proposed 12 weeks, but plans around paid leave are “fluid,” one source familiar with the talks told Punchbowl. 

Child care: Unclear. Child care funding seems to still be in play, but a specific funding amount remains to be seen. House Democrats previously proposed setting aside $90 billion in federal funding to help families with children under the age of 5 pay for child care so that most families would spend less than 7% of their total income on this expense.

Climate proposals: Unclear. Biden has called for reducing greenhouse gas emissions by 50% by 2030, but the programs designed to accomplish this are still in flux. Politico reports that the $150 billion Clean Energy Performance Program, which would incentivize utilities to increase clean electricity, is also likely out. That said, if Biden’s blocked legislatively, he may try to push through his agenda using administrative action. 

Medicare expansion: Unclear. This is a huge sticking point between progressives like Bernie Sanders (I-Vt.), who support the expansion, and Manchin, who opposes it. Reports note that there have been discussions of a “pilot program” in which seniors would receive assistance to cover dental costs, but it’s unclear if this would also cover hearing and vision as well.

With some momentum coming out of Tuesday’s meetings, Democrats are looking to find a compromise before the end of the month. House Speaker Nancy Pelosi (D-Calif.) set an Oct. 31 deadline to pass the $1.2 trillion bipartisan infrastructure bill, but progressive Democrats have said they will not vote on infrastructure until there’s an agreement on the reconciliation budget plan. House Majority Leader Steny Hoyer (D-Md.) said Tuesday he’s committed to voting on both the infrastructure bill and a reconciliation package by the end of the month, according to NPR.

“I do feel like we’re getting closer. I think we’re all working really hard to try to get this done,” Rep. Pramila Jayapal (D-Wash.) said Tuesday.

More politics coverage from Fortune:

  • Business leaders have the power to disrupt the political status quo
  • Colin Powell: The best advice I ever got
  • Miami private school says vaccinated students must stay home for 30 days
  • ‘Gone too far’: Meet the Dutch chips giant that Silicon Valley loves and Biden fears
  • That ’70s (horror) show: Investors are freaking out about stagflation, a relic of the Carter years

Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.

About the Author
Megan Leonhardt
By Megan Leonhardt
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Lists Calendar
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Lists Calendar
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

Federal appeals court blocks California law requiring federal agents to wear badges or ID because it ‘attempts to directly regulate the U.S.’
LawCalifornia
Federal appeals court blocks California law requiring federal agents to wear badges or ID because it ‘attempts to directly regulate the U.S.’
By The Associated Press and Jaimie DingApril 22, 2026
1 hour ago
President Donald Trump
AITariffs
The AI boom is singlehandedly carrying the U.S. import market—and adding $200 billion to the trade deficit, Fed study finds
By Tristan BoveApril 22, 2026
2 hours ago
trump
PoliticsIran
Iran has Trump caught on the same math that Ukraine is using against Putin: $1 million missiles, $20,000 drones
By Aaron Brynildson and The ConversationApril 22, 2026
4 hours ago
Trump administration reportedly nears $500 million rescue deal for Spirit Airlines
EconomySPIRIT AIRLINES
Trump administration reportedly nears $500 million rescue deal for Spirit Airlines
By Catherina GioinoApril 22, 2026
5 hours ago
hormuz
PoliticsIran
Iran fires on 3 ships in Strait of Hormuz amid supposedly indefinite cease-fire
By Jon Gambrell, David Rising and The Associated PressApril 22, 2026
6 hours ago
trump
Commentarynational debt
America’s national debt is heading to 175% of GDP. Here’s why no president—including Trump—has the will to stop it
By Steve H. Hanke and David M. WalkerApril 22, 2026
9 hours ago

Most Popular

The tables have turned: Florida and Texas are the biggest losers in the housing market as Ohio emerges a surprise winner
Real Estate
The tables have turned: Florida and Texas are the biggest losers in the housing market as Ohio emerges a surprise winner
By Sydney LakeApril 21, 2026
1 day ago
'Something sinister could be happening': FBI looks into dead or missing nuclear and space defense scientists tied to NASA, Blue Origin, and SpaceX
Politics
'Something sinister could be happening': FBI looks into dead or missing nuclear and space defense scientists tied to NASA, Blue Origin, and SpaceX
By Catherina GioinoApril 21, 2026
1 day ago
‘Something sinister’: What we know about the FBI probe into dead and missing scientists linked to space and military industries
Economy
‘Something sinister’: What we know about the FBI probe into dead and missing scientists linked to space and military industries
By Jim EdwardsApril 22, 2026
10 hours ago
$166 billion in tariff refunds just became available, but small businesses may already be at a disadvantage
Law
$166 billion in tariff refunds just became available, but small businesses may already be at a disadvantage
By Sasha RogelbergApril 20, 2026
2 days ago
John Ternus, the man stepping into Tim Cook and Steve Jobs' shoes, is a 25-year Apple veteran with zero LinkedIn posts
C-Suite
John Ternus, the man stepping into Tim Cook and Steve Jobs' shoes, is a 25-year Apple veteran with zero LinkedIn posts
By Kelvin Chan and The Associated PressApril 21, 2026
1 day ago
Jeff Bezos once gave Eva Longoria and the admiral behind Osama bin Laden's capture $100 million—but she says you don't need wealth to give back
Success
Jeff Bezos once gave Eva Longoria and the admiral behind Osama bin Laden's capture $100 million—but she says you don't need wealth to give back
By Orianna Rosa RoyleApril 21, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.