NARC Legislative Update And Analysis: U.S. House Passes Reconciliation Package

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On November 19, the U.S. House passed its version of President Biden’s  Build Back Better Act (BBBA), a $1.75 trillion (H.R. 5376) reconciliation package  that includes paid family leave, universal preschool, tax incentives, climate initiatives, and a Medicare drug price negotiation program.  The legislation passed on a 220-213 party-line vote, utilizing the reconciliation process that give the House majority nearly complete control over all elements of the bill and substantially limits the minorities ability to amend the bill.  The bill now goes to the Seante where a similar drafting process will be used.  Most importantly, however, the reconciliation process enables the Senate majority to pass a bill with a simple majority.  Once drafted, the majority leader can bring the bill straight to the floor. and any amendments are required to comply with reconciliation rules, with a vote on passage to follow. If the Senate’s version differs from the House’s version the House and Senate will have to conference both bills and come to an agreement on a single bill that must then pass the House and Senate.  The House also has the option of skipping conference and vote on the Senate bill.  If it passes it will go to the president for his signature.   

The BBBA invests heavily in social programs such as childcare, preschool education, paid parental leave, resources to address climate change, education and housing stabilization and much more. Below are more details about some of these important programs.  

WHAT’S IN THE BUILD BACK BETTER ACT:  

Investments in Affordable Housing:

BBBA would provide a total of $150 billion for affordable housing programs that either improve or build over 1 million housing units.  

  • $3.05 billion for the Community Development Block Grant (CDBG) program, including $500 million for a new Manufactured Housing Community Improvement Program.  
  • $25 billion for Housing Choice Vouchers and supportive services.  
  • $35 billion for the HOME Investment Partnership Program, including $15 billion to preserve and create affordable rental homes.  

Investments in Workforce Development:  

The bill would provide $4.5 billion for Workforce Innovation and Opportunity Act (WIOA) Title I programs within the U.S. Department of Labor (DOL).  

  • $2 billion for the Dislocated Workers Work Employment and Training Activities  
  • $1 billion for Adult Worker Employment and Training Activities  
  • $1.5 billion Youth Workforce Investment Activities 

Investments in the Economic Development Administration: 

The bill would provide $5 billion to the Economic Development Administration (EDA). Of this total, counties would be eligible to receive funding under the following programs 

  • $3.36 billion for EDA’s Economic Adjustment Assistance Program to develop regional economic growth clusters, including grants for technical assistance, planning and predevelopment activities 
  • $480 million for EDA’s Economic Adjustment Assistance Program to provide grants for technical assistance, planning and predevelopment activities to energy and industrial transition communities 
  • $1.2 billion for a new Recompete Grants for Persistently Distressed Communities program, which would award grants to alleviate economic distress and support long-term comprehensive economic development and job creation 

Raises the Cap on The State and Local Tax Deduction: 

The bill would raise the cap on the state and local tax (SALT) deduction from $10,000 to $80,000 and extend this cap through 2030. The $80,000 SALT cap amount would also apply to the 2021 tax year. For 2031, the SALT deduction cap would be set at $10,000. 

Investments in Climate Action:  

The BBBA would provide $555 billion for climate and clean energy investments. The bill provides tax credits up to $12,500 to those buying new electric vehicles, as well as incentives to encourage solar panel installation as well as the following:  

  • $17.8 billion to mitigate air pollution;  
  • $95 million would address hazardous materials through competitive EPA grants to reduce waste in communities to construct, expand, or modernize recycling infrastructure;  
  • $9 billion would help reduce lead in clean drinking water;  
  • and, $8.27 billion promoting environmental equity.  

Investments in Rural Development: 

The bill would provide $873 million to establish a new Rural Partnership Program through USDA, which aims to enhance rural communities’ access to federal community and economic development funding by providing flexible grants and technical assistance to a range of entities. Some additional investments in rural communities include:  

  • $9.7 billion for clean energy repowering for rural utilities; 
  • $3.5 billion to provide grants to support rural development;  
  • and, $2.7 billion for grants for construction, alteration, acquisition, modernization, renovation, or remodeling of agricultural resource facilities.  

Investments in Telecommunications: 

BBBA would allocate grants for NG911 (next generation 911) services including $9 million to establish an NG911 Cybersecurity Center within the National Telecommunications and Information Administration (“NTIA”) in addition to $1 million to establish a 16-member Public Safety NG911 Advisory Board.  Beyond the NG911 funding, the Act also allocates $295 million to NTIA for grants to public-private partnerships aimed at increasing access to broadband in urban communities. Some of the funding programs include:  

  • $300 million for the extension of the Emergency Connectivity Fund;  
  • and, $500 million in increased investments in next generation 911.  

Investments in Transportation: 

This legislation would make transportation more accessible and affordable, and help tackle the climate crisis by reducing carbon pollution from transportation and building more resilient infrastructure. Some of the transportation related programs in the bill include:  

  • $50 million facilitates national environmental policy act (nepa) reviews  
  • $294 million alternative fuel and low-emission aviation technology program  
  • $10 billion passenger rail improvement, modernizations, and emissions (prime) reduction grants  
  • $4 billion in neighborhood access and equity grants  
  • $900 million in reimbursements for use of low-carbon materials in transportation projects. 

The above is not an exhaustive list of every program and funding source in the entirety of BBBA. Additional resources and analysis from the National Association of Counties (NACo) can be found here. NARC will continue to monitor the legislation as it progresses through the Senate and provide you with additional information.  

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