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Biden responds to the Could jobs report: ‘Our plan is working’

Biden responds to the May jobs report: 'Our plan is working'

WASHINGTON — President Joe Biden responded to the May jobs report on Friday, saying the steady growth in jobs and the decline in unemployment is evidence his economic plan is working.

“None of this success is an accident,” said Biden, who spoke in Rehoboth Beach, Delaware. “It isn’t luck. It’s due in no small part to the cooperation of the American people,” who have worn masks and gotten vaccinated for Covid-19.

“And it’s due in no small part to the bold action we took with the American Rescue Plan,” said Biden, referring to the massive Covid relief bill Democrats passed in March.

“This is progress that’s pulling our economy out of the worst crisis in the last 100 years,” Biden said.

Nonfarm payrolls added a solid 559,000 jobs in May, the Labor Department reported. But the number fell short of the 671,000 jobs that economists surveyed by Dow Jones had anticipated.

The unemployment rate fell from 6.1% to 5.8%, which was better than the estimate of 5.9%. An alternative measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons also edged lower, to 10.2%.

“Covid cases are down. Covid deaths are down. Unemployment filings are down. Hunger is down, and vaccinations are up,” said Biden. “Jobs are up. Wages are up. Manufacturing is up. Growth is up. People gaining health-care coverage is up. Small business confidence is up. America is finally on the move again.”

Despite the gains, the U.S. is still about 7.4 million jobs shy of where it was pre-pandemic.

Even though they’re called “May jobs numbers,” the actual figure is calculated during the second week of the month, based on that week’s data. This is especially relevant for understanding May’s numbers in the context of the pandemic recovery.

As Biden noted, in the three weeks since the May jobs figures were calculated, more than 21 million working-age adults have been fully vaccinated and are now more likely to return to jobs, spend money on leisure and consumer goods and plan summer travel.

Another milestone not fully captured by the May jobs numbers is the impact of the CDC’s announcement on May 13 that fully vaccinated adults no longer need to wear masks outdoors in crowds or in most indoor settings.

The announcement had a domino effect on state-level mask mandates, helping to draw Americans back to office buildings, health-care providers and other activities they had avoided during the past year.

As Biden prepares to meet with G-7 member nations next week in England, he noted that “no other major economy in the world is growing as fast as ours. No other major economy is gaining jobs as quickly as ours.”

U.S. President Joe Biden delivers remarks on the May jobs report after U.S. employers boosted hiring amid the easing coronavirus disease (COVID-19) pandemic, at the Rehoboth Beach Convention Center in Rehoboth Beach, Delaware, U.S., June 4, 2021.

Kevin Lemarque | Reuters

One notable part of the report was an acceleration in wage gains, which rose 2% year over year from being up just 0.4% in April.

Economists had largely been dismissive of average hourly earnings numbers for much of the post-pandemic period, noting that the bulk of hires came from higher-earning positions, which made wages look like they were rising for everyone but left many low-wage workers out of gains.

With the return of more hospitality workers in May, the numbers are more relevant now and indicative of rising wage pressures across the economy, not just for higher earners.

Some economists fear that increasing wages could lead to further inflation, and they blame enhanced unemployment benefits for causing a “labor shortage” that forced huge companies such as Bank of America and McDonald’s to raise their hourly minimum wage.

Biden rejects this view of the economy. “When it comes to the economy we’re building, rising wages aren’t a bug, they’re a feature,” he said during a speech in Ohio last week.

During the same speech, Biden renewed his call for Congress to raise the federal minimum wage to $15 an hour.

The May jobs report is the first full measure of the labor market since the shock of April’s numbers, which fell far short of economists’ initial expectations.

— CNBC’s Jeff Cox contributed to this report.

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Health

Biden Covid group holds briefing as U.S. doubles down on vaccine efforts

Fauci says AstraZeneca will likely issue modified statement

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President Joe Biden’s Covid-19 Response Team holds a press conference Thursday on the country’s response to the coronavirus pandemic that infected more than 33.3 million Americans and killed at least 595,849 people.

On Wednesday, Biden said the government had redoubled efforts to get more Americans vaccinated against Covid-19 by July 4th

In early May, Biden announced his administration’s new goals in the fight against this virus: 70% of adults in the US should receive at least one dose of a vaccine and 160 million adults should be fully vaccinated by Independence Day.

In a White House speech on Wednesday, Biden announced June as “national month of action” to vaccinate more Americans. He urged unvaccinated Americans to get the shots and said they were still at risk of getting seriously ill, dying, and passing the disease on to others, especially as autumn approaches.

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Politics

Biden rejects new GOP infrastructure provide

Progress in talks with GOP senators

U.S. President Joe Biden gestures toward Senator Shelley Capito (R-WV) during an infrastructure meeting with Republican Senators at the White House in Washington, May 13, 2021.

Kevin Lamarque | Reuters

President Joe Biden rejected a new Republican infrastructure counteroffer on Friday, but will continue talks with Republicans next week as the White House considers whether it should abandon hopes for a bipartisan deal.

During a conversation with the president Friday, Sen. Shelley Moore Capito, R-W.V., proposed adding about $50 billion in spending to the GOP’s framework, White House press secretary Jen Psaki said in a statement. Republicans last put forward a $928 billion plan. Biden most recently proposed a $1.7 trillion package.

Biden signaled the “current offer did not meet his objectives to grow the economy, tackle the climate crisis, and create new jobs,” she added. Though he shot down the latest proposal, Biden will meet with Capito again Monday and plans to engage with senators from both parties about a “more substantial package,” according to Psaki.

As the talks continue, Democrats have also moved ahead with a surface transportation bill in the House. The legislation could serve as the means to approve major pieces of Biden’s $2.3 trillion infrastructure package through a series of must-pass spending bills.

House Transportation Committee Chair Rep. Peter DeFazio, D-Ore., unveiled the bill on Friday. It would invest $547 billion over five years in roads and bridges, as well as rail and other public transport.

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DeFazio has scheduled a committee mark up the bill Wednesday, a date which could serve as the closest thing to a real deadline for Biden and Senate Republicans to reach a deal on infrastructure. Biden separately spoke to DeFazio to “offer his support” for the hearing on the legislation.

The parties have tried to forge a compromise for weeks but appear far from agreement on how much money to spend on infrastructure and how to pay for the investments. Monday marks the date by which Transportation Secretary Pete Buttigieg said the White House wanted to see a “clear direction” in the talks.

Biden could have to decide whether to pursue a massive infrastructure package with only Democratic votes. Members of his own party could complicate the process: Democratic Sen. Joe Manchin of West Virginia on Thursday expressed doubts about using special budget rules to pass a bill as he holds out hope for a bipartisan deal. Biden would need every Democratic vote in the Senate if a plan lacks GOP support.

Biden has told Capito he wants a bill to include at least $1 trillion in new money — or increases to the spending set out under existing policy. The Republican plan would allocate only about $250 billion in new funds.

The president also floated alternatives to his proposal to pay for a bill by hiking the corporate tax rate to at least 25%, a move Republicans oppose. Biden mentioned the possibility of implementing a 15% minimum corporate tax as some profitable companies manage to pay little or no taxes. (The White House stressed that Biden still supports hiking the corporate rate).

However, it is unclear if Republicans will accept Biden’s concession.

The talks have underscored fundamental differences in what the parties consider infrastructure and what they see as the federal government’s role in a changing economy. The White House wants a plan to include not only upgrades to transportation, broadband and water systems, but also investments in clean energy, care for dependent family members, housing and schools.

The GOP wants a more narrow focus on areas including roads, bridges, airports, broadband and water systems.

Whether Biden chooses to craft a bipartisan agreement or pass a bill with only Democratic support, he could face backlash from Democrats. Some progressive lawmakers, including Rep. Jamaal Bowman, D-N.Y., have grown wary of the president’s efforts to cut his original $2.3 trillion proposal in order to win Republican votes.

“If what we’ve read is true, I would have a very difficult time voting yes on this bill,” he said in a statement Thursday. “$2 trillion was already the compromise. President Biden can’t expect us to vote for an infrastructure deal dictated by the Republican Party.”

Still, Psaki signaled Friday that the administration has not shut the door on a bipartisan deal. She told reporters “there’s runway left” on the talks.

However, she suggested the White House would put a cap on how long it negotiates with Republicans.

“There are some realities of timelines” on the talks, she said, “including the fact that Congressman DeFazio is leading the markup of key components of the American Jobs Plan next week.”

Senate Majority Leader Chuck Schumer, D-N.Y., has told his caucus he wants to pass an infrastructure bill by July.

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Biden needs Republican Capito to extend counteroffer

Biden wants Republican Capito to increase counteroffer

United States President Joe Biden will address the Middle East on May 20, 2021 at the Cross Hall of the White House in Washington, DC.

Nicholas Comb | AFP | Getty Images

President Joe Biden wants Republicans to increase spending on their infrastructure plan ahead of Friday’s talks that will determine whether Washington can pass bipartisan law to upgrade transportation, broadband and water systems.

During a meeting on Wednesday, Biden told GOP Senator Shelley Moore Capito that he wanted the plan to include $ 1 trillion in new spending – or above the baseline set under the existing policy, NBC News reported. While Republicans recently sent Biden a counteroffer totaling $ 928 billion, it contained only about $ 250 billion in new money.

Biden also reiterated that he plans to fund an infrastructure bill by increasing the corporate tax rate, according to NBC. The GOP opposes any change to its 2017 Tax Act, which cut corporate tax from 35% to 21%. On Thursday, the Washington Post and Reuters reported that Biden had offered to keep the corporate tax rate in place and instead rely on a minimum tax of 15% to curb underpayment for profitable American companies.

Capito, a Republican from West Virginia, shared the details of the meeting with five other Republican senators on her infrastructure negotiation team, NBC reported. The GOP expects to send Biden another counter offer on Friday, the day Biden and Capito want to speak again.

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The priorities outlined by Biden on Wednesday highlight the hurdles negotiators face on the way to a bipartisan deal. Despite weeks of maneuvers, the parties did not agree on what should be included in an infrastructure bill or how the plan should be financed.

The White House has signaled that it could go ahead and try to pass laws only with democratic votes if talks don’t progress by next week. Energy Secretary Jennifer Granholm told CNBC on Wednesday that the negotiations were “limited in time”.

However, neither Democrats nor Republicans have shown that they want to be the ones to leave the talks.

The GOP’s $ 928 billion plan was roughly half of Biden’s latest $ 1.7 trillion proposal. Democrats want a bill to go beyond conventional notions of infrastructure, but Republicans have opposed including policies on transport, broadband and utilities.

The White House package includes major investments in care for elderly and disabled Americans, homes, schools, electric vehicles, and clean energy. Democrats have emphasized the need to stimulate the economy over the long term by making it easier for workers to find care for dependent family members and by preparing buildings and critical infrastructure for the effects of climate change.

Republicans intend to limit a plan to investments in areas such as roads, bridges, airports, ports, waterways, broadband and water systems.

Agreeing on how to offset expenses could prove just as difficult as deciding what to include on the bill. Republicans have announced that they will not agree to an increase in corporate taxes. Biden wants to raise the rate to at least 25%.

The White House rejects a GOP proposal to reuse the coronavirus aid money passed by the Democrats earlier this year.

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Joe Biden and Shelley Moore Capito to fulfill Friday

Progress in talks with GOP senators

United States President Joe Biden gestures at Senator Shelley Capito (R-WV) during an infrastructure meeting with Republican Senators at the White House in Washington May 13, 2021.

Kevin Lamarque | Reuters

President Joe Biden and Republican Senator Shelley Moore Capito ended a meeting on a possible infrastructure compromise Wednesday and agreed to speak again in two days.

The president and senior GOP negotiator had a “constructive and frank conversation” about a massive proposal to invest in US infrastructure, a White House official said. Biden and the West Virginia senator started the day with differing views on what should go into a bill and how the government should pay for the plan.

During Wednesday’s meeting, Capito “emphasized their desire to work together to reach an infrastructure deal that can pass bipartisan to Congress,” said Capito spokeswoman Kelley Moore. The senator was “encouraged that negotiations continued” and will brief other Republicans before the next discussion with Biden, she added.

Friday’s discussion could be a last-ditch effort to get any closer to an infrastructure deal before the Democrats decide whether to try to pass laws themselves. The Biden administration has signaled that it wants to see progress in talks with Republicans by next week.

“There is a time limit for that … You won’t be playing this back and forth for much longer,” Energy Secretary Jennifer Granholm told CNBC’s “Squawk Box” on Wednesday morning.

“There is definitely a deal,” she said.

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Talks continue a back-and-forth between the White House and the GOP as the parties seek a way forward on a plan to transform US transport, broadband, and utilities. Republicans did not support Biden’s proposals to invest in schools, homes, care facilities and green energy under a bill because they should focus on the infrastructure defined in the past.

The GOP sent Biden a counteroffer for $ 928 billion last week. The president had previously cut his proposal from $ 2.3 trillion to $ 1.7 trillion.

The parties must also resolve a dispute about how the expenses should be offset. Biden plans to raise the corporate tax rate from 21 percent to at least 25 percent, which was set under the 2017 Republican Tax Act. It also aims to reduce underpayments from both individuals and businesses.

Republicans have announced that they will not reconsider their tax legislation. Instead, they called for the coronavirus aid money approved earlier this year to be reused. The White House has signaled its opposition to the diversion of funds and has questioned how much of the aid will be left.

If they can’t reach an agreement with the Republicans, the Democrats can try to pass an infrastructure bill themselves by balancing the budget. It would require the support of every member of the Democratic Senate faction in an evenly divided chamber.

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Biden doubles down on U.S. efforts to get extra People vaccinated by the Fourth of July

Biden doubles down on U.S. efforts to get more Americans vaccinated by the Fourth of July

President Joe Biden speaks on Covid-19 response and vaccinations in the South Court Auditorium of the Eisenhower Executive Office Building, next to the White House, in Washington, DC, on June 2, 2021.

Mandel Ngan | AFP | Getty Images

President Joe Biden on Wednesday doubled down on his administration’s efforts to get more Americans vaccinated against Covid-19 by July 4, a date the president has said he hopes will mark a turning point in the pandemic in the U.S.

In early May, Biden announced his administration’s new goals in the fight against the coronavirus: getting 70% of U.S. adults to receive at least one dose of a Covid vaccine and having 160 million adults fully vaccinated by Independence Day.

Speaking from the White House on Wednesday, Biden announced June as the “national month of action” to get more Americans vaccinated by July 4. He urged unvaccinated Americans to get the shots, saying they are still at risk of becoming seriously ill, dying and spreading the disease to others, especially once the U.S. approaches the fall.

“Getting a vaccine is not a partisan act,” Biden said, noting that the Pfizer and Moderna Covid vaccines were authorized under former Republican President Donald Trump.

“I don’t want to see the country that is already divided be divided in a new way: between places where people live free from fear of Covid and places, when the fall arrives, deaths and severe illnesses return,” he said. “The vaccine is free, safe and effective.”

The president outlined his administration’s approach to its nationwide vaccine campaign, which he said would mobilize national organizations, community- and faith-based partners, celebrities, athletes and other influential groups.

In details released ahead of Biden’s speech, the White House also said the administration has asked pharmacies to extend their hours for the month of June and disclosed it is partnering with child-care providers to offer free services to all parents getting vaccinated or recovering from the shots.

KinderCare and Learning Care Group as well as more than 500 YMCAs will offer the child services, Biden said later Wednesday.

The administration is also organizing efforts to call and text people in areas with low vaccination rates and is challenging mayors to compete with each other to see which city can increase shot rates the quickest, according to an email from the White House.

Other administration efforts include “Shots at the Shop,” an initiative that will engage Black-owned barbershops and beauty salons across the country to support local vaccine education and outreach efforts.

Biden and Vice President Kamala Harris will also lead a tour – called the “We Can Do This” National Vaccination Tour – which will highlight “the ease of getting vaccinated, encourage vaccinations, and energize and mobilize grassroots vaccine education and outreach efforts,” according to the White House.

On Wednesday, Biden also touted the White House’s partnership with Uber and Lyft to offer free rides to vaccination sites until July 4.

“America is heading into a summer dramatically different from last summer,” he said. “Safely vaccinated people are shedding their masks and greeting one another with a smile.”

As of Tuesday, more than 162 million U.S. adults, or 62.8% of people 18 and over, have received at least one Covid vaccine, according to data compiled by the Centers for Disease Control and Prevention. More than 133 million U.S. adults are fully vaccinated, according to the CDC.

There was an average of 1.2 million Covid shots administered every day over the last week in the U.S. But some of the data over the long holiday weekend is incomplete, so vaccination rates may be higher.

Public health experts say Biden’s vaccination goal may pose a challenge for his administration as the U.S. has already inoculated those most enthusiastic about getting a vaccine.

Kevin Hensley is given the J&J COVID vaccine in coordination with the Cook County Health Dept. and the Chicago White Sox. Recipients were given a $25 card for discounts on concessions before Game One of a doubleheader at Guaranteed Rate Field on May 29, 2021 in Chicago, Illinois.

David Banks | Getty Images

In order to administer millions of more inoculations in the next four weeks, the White House has said the president will take additional steps to encourage more people to get vaccinated and make it easier for them to do so.

In addition to the steps announced Wednedsay, the Biden administration has worked to make getting a vaccine “as easy as ever” with many vaccination sites across the U.S. offering walk-ins.

The administration in April launched a massive campaign to persuade more Americans to take the vaccines, which is using social media and virtual events where celebrities and athletes answer people’s lingering questions about the vaccines.

The CDC has updated its public health guidance to say that fully vaccinated people no longer need to wear a face mask or stay 6 feet away from others in most settings, whether outdoors or indoors. Many public health experts say the change was designed to encourage more people to get vaccinated.

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Biden to unveil effort to slim racial wealth hole

Biden to unveil effort to narrow racial wealth gap

United States President Joe Biden speaks about the COVID-19 Response and Vaccination Program at the White House in Washington on May 12, 2021.

Kevin Lamarque | Reuters

WASHINGTON – President Joe Biden will on Tuesday announce new measures his administration is taking to narrow the racial wealth gap.

The announcement coincides with Biden’s trip to Tulsa, Oklahoma, to commemorate the 100th anniversary of the Tulsa massacre, one of the worst episodes of racial violence in US history.

Biden will announce an increase in the proportion of federal contracts for small, disadvantaged businesses; the repeal of two Trump-era housing rules; and the launch of an initiative to tackle inequality in housing valuation.

The measures represent “a step towards delivering on the ideals and promises of this nation regarding racial justice,” a White House official said Monday during a call to reporters.

On May 31, 1921, white racists attacked Tulsa’s Greenwood neighborhood, one of the then richest black communities in America. Countless blacks have been killed – estimates range from 55 to more than 300 – and 1,000 homes and businesses have been looted and set on fire in what remains one of the worst incidents of racial violence in American history.

In the century since the Tulsa massacre, black Americans have faced discrimination across the US economy, in housing, banking, and the workplace.

The average net wealth of white households is now roughly eight times the net worth of black households, a racial wealth gap that widened during the Covid pandemic.

Biden campaigned for the president as a pledge to address systemic racism and gaps in opportunity in all aspects of American life.

White House officials said the efforts, announced on Tuesday, are specifically aimed at expanding equity and access to two major wealth generators: home ownership and small business.

This is what Biden will announce:

  1. The creation of an inter-agency initiative to eradicate inequalities in the valuation of housing, led by Marcia Fudge, Minister for Housing and Urban Development. “Homes and black-majority neighborhoods are often valued tens of thousands of dollars less than comparable homes in similar white-majority communities,” the White House said. “These efforts will try to use the many levers available to the federal government very quickly to eradicate discrimination in the valuation and home purchase process.”
  2. The HUD will enact two rules of the Fair Housing Act that will reverse the efforts of the HUD during the Trump administration to weaken the protections afforded by the law. “In both cases, the HUD is returning to traditional interpretations of the Fair Housing Act,” the White House said on Monday. The new rules are intended to “pave the way for HUD to enforce the Fair Housing Act more vigorously,” it said.
  3. The administration will announce the goal of increasing the proportion of federal contracts to small, disadvantaged companies by 50% over the next five years. Currently, about 10% of federal contracts go to SDBs annually, totaling about $ 50 billion. A 50% increase by 2026 would mean an additional $ 100 billion in federal contracts will be awarded to SDBs over that five-year period, officials said.

Remarkably, however, Biden’s announcement lacks concrete action on two issues that are at the heart of the debate about how to advance racial justice in the US economy: student loan waivers and redress for slavery.

As a candidate, Biden pledged to use federal powers to cancel thousands of dollars in debt for every student in America. So far, however, his government has not presented a plan or a timetable for implementing the debt relief.

Some economists estimate that student loan debt accounts for up to a quarter of the racial wealth gap between blacks and whites aged 30-35.

Nor did Biden say whether he would support a bill in Congress to provide financial reparations to the descendants of slaves. Instead, the White House says Biden is in favor of the idea of ​​a commission examining the possibility of redress.

During his speech in Tulsa, Biden will outline several ways his signed $ 2 trillion infrastructure proposal, the American Jobs Plan, could help fill the racial wealth gap.

This includes a new neighborhood home tax credit, which offers a tax credit to investors renovating homes in low-income and derelict areas, where property remediation often costs more than it can sell.

Another move that could help narrow the gap is a $ 15 billion fund for a neighborhood reconnection program that would provide grants to upgrade or redesign highways that run through the middle of downtown areas US cities lead.

But these initiatives are still in the planning phase. The American employment plan has yet to be legislated by Congress, let alone passed into law. And with only one seat in the Senate, Democrats have few opportunities to pass laws without a Republican vote.

The White House has spent the past three weeks negotiating with a group of Republicans in the Senate to work out a bipartisan infrastructure bill that could be passed by majority in both houses.

But those talks have stalled and Biden has come under increasing pressure over the past week to give them up.

Democrats are increasingly focused on pushing the president’s domestic agenda through a budget vote bill, a complex legislative maneuver that requires only 51 votes in the Senate.

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AT&T employed ally of Commerce Secretary Raimondo to foyer Biden infrastructure plan

AT&T hired ally of Commerce Secretary Raimondo to lobby Biden infrastructure plan

John Stankey, CEO of AT&T

Mike Segar | Reuters

Telecom giant AT&T hired an ally of Commerce Secretary Gina Raimondo to lobby officials over President Joe Biden’s infrastructure plan.

A lobbying registration report shows that AT&T hired Jon Duffy, the president of Rhode Island-based marketing firm Duffy & Shanley, in April. The document doesn’t say whether he will lobby congressional lawmakers or administration officials.

Duffy was a co-chair of Raimondo’s transition team after she was first elected in 2014 to be governor of Rhode Island. Records show that Duffy had never registered to lobby until his recent agreement with AT&T.

The lobbying report says that AT&T hired Duffy to focus on “issues related to broadband and The American Jobs Plan.”

Biden’s $2 trillion infrastructure proposal includes a $100 billion investment in expanding broadband access. The Senate Republicans’ most recent counteroffer included $65 billion for broadband.

The infrastructure lobbying comes during a pivotal time for AT&T. The company announced a $43 billion deal this month to merge its WarnerMedia division with Discovery.

AT&T so far in 2021 has spent just over $2.6 million on lobbying expenditures, according to the nonpartisan Center for Responsive Politics. AT&T lobbyists have engaged with the Commerce Department, the Executive Office of the President and the Vice President’s Office, among other agencies.

In response to questions about the Duffy hire, AT&T told CNBC on Friday that it plans to focus lobbying efforts in part on working toward “accessible, affordable and sustainable broadband connectivity.”

“During the pandemic, U.S. networks performed much better than other countries,” a company spokesman said. “The country’s broadband networks rose to the challenge due to policies that promoted private sector investment in multiple technologies and networks. Americans are paying less and getting more.”  

Duffy’s public relations company already lists AT&T as a client on its website. Other corporate clients listed include Intel, Dunkin’ Donuts, Hallmark and Staples. Duffy did not respond to a request for comment.

AT&T announced in April a $2 billion commitment to help make broadband more affordable.

Raimondo has been a fierce advocate for investments into expanding broadband access.

“We need transformational investments in broadband to ensure that all Americans finally have access to affordable, reliable, high-speed Internet service. During the pandemic we have seen that high-speed broadband service is not a luxury, but a necessity for jobs, education, and health care,” Raimondo said at an April hearing in front of the Senate Committee on Appropriations.

The Commerce Department’s National Telecommunications and Information Administration announced earlier this month a $288 million grant program for wide-scale broadband infrastructure.

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Business

Biden finances would give CDC greatest funding increase in practically 20 years

Biden budget would give CDC biggest funding boost in nearly 20 years

President Joe Biden and Vice President Kamala Harris receive an update on the fight against the coronavirus disease (COVID-19) pandemic as they visit the Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia, U.S., March 19, 2021.

Carlos Barria | Reuters

President Joe Biden’s first budget proposal would give the largest funding boost in nearly two decades to the agency most closely tracking the coronavirus pandemic, his administration said Friday.

The budget blueprint for fiscal 2022 would include $8.7 billion in discretionary funding for the Centers for Disease Control and Prevention, according to budget documents shared by the Office of Management and Budget.

The agency said that budget bump would build on the CDC investments doled out in the American Rescue Plan, the $1.9 trillion Covid relief plan that Biden signed into law in March.

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The new funding would be used to “support core public health capacity improvements in States and Territories, modernize public health data collection nationwide, train new epidemiologists and other public health experts, and rebuild international capacity to detect, prepare for, and respond to emerging global threats,” the OMB said.

While the CDC funding request is a big increase from recent years, it comprises just a small slice of Biden’s $6 trillion budget proposal for 2022. The request wraps in funding for a double-barreled, multitrillion-dollar economic overhaul plan that the president unveiled earlier this year.

More than 33 million Covid infections, and at least 593,466 deaths, have been reported in the U.S., according to data from Johns Hopkins University.

From before Covid was even officially labeled a pandemic, the CDC has issued guidance on how to slow or prevent the spread of the virus in different environments, from summer camps to nursing homes. The agency has now issued and updated more than 200 guidance documents, its website shows.

But the budget proposal would go beyond funding the agency’s disease-focused work.

The budget materials say $153 million would be allocated for the CDC’s Social Determinants of Health program to work on “improving health equity and data collection for racial and ethnic populations.”

The government would also provide $100 million for the CDC’s Climate and Health program as part of a $1.2 billion investment in strengthening resilience to wildfires, floods, droughts and other climate-related disasters.

The budget request for the Health and Human Services Department would double firearm violence prevention research at the CDC and the National Institutes of Health.

Overall, HHS is requesting $133.7 billion in discretionary funding — a $25.3 billion, or 23.4%, bump from the enacted budget of fiscal 2021.

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Biden price range contains spending plans, enhance in well being, training funds

Biden budget includes spending plans, boost in health, education funds

WASHINGTON — President Joe Biden released his fiscal year 2022 budget request to Congress on Friday, the first formal budget of his presidency and a sharp departure from his predecessor Donald Trump. 

Biden’s budget incorporates his two signature domestic proposals, the American Families Plan and the American Jobs Plan, neither of which has been seriously debated by Congress yet. 

It also illustrates how different Biden’s priorities are from Trump’s. For example, it requests an increase of 41% for the Department of Education over last year, plus 23% more for the Department of Health and Human Services, and 22% more for the Environmental Protection Agency. 

Funding for the Department of Homeland Security, which carried out Trump’s aggressive immigration policies, would decrease by a tenth of a percent. Another Trump priority, the Department of Defense, would see an increase in funding of just 2%. 

On a personal level, Biden views his budget as a reflection of his values. He often quotes his own father as having said, “Don’t tell me what you value. Show me your budget, and I’ll tell you what you value.”

The topline budget request for 2022 is $6 trillion. But of this, only $300 billion is new spending requested for next year. Instead, as in every presidential budget, the vast majority of the money in it will be spent on programs the government is obligated by law to fund, such as Medicare, Social Security and interest on the national debt. 

All told, around $1.5 trillion was requested for discretionary items in FY 2022, which includes the funding of all federal agencies. Approximately half of that is already marked for the Defense Department.

On the pay-for side, Biden’s budget incorporates a wide variety of changes to the tax code that the White House says can fund his multitrillion-dollar domestic spending plans. Chief among these are an increase in the corporate tax rate from 21% to 28%, as well as increased IRS enforcement and higher taxes on the wealthiest taxpayers. 

The tax changes also include a set of “Made in America” tax changes that penalize U.S. companies for offshoring jobs, especially to make goods that are then sold back to American consumers. 

As with most presidential budgets, the White House relies on optimistic projections of unemployment rates and GDP growth to argue that the expensive spending plans will pay for themselves in increased growth.

Unemployment, the White House projects, will fall to 4.7% by the end of the year, 4.1% in 2022 and 3.8% the following year. After that, it projects unemployment will remain at 3.8% for the ensuing seven years.

Biden’s budget also projects that inflation will reach no more than 2.3% annually over the next 10 years, reflecting the administration’s belief that concerns among some economists about runaway inflation are overblown.

Speaking to reporters prior to the release of the plan Friday, Cecilia Rouse, the chair of Biden’s Council of Economic Advisers, said that historically low interest rates make now an ideal time for the federal government to take on additional debt to modernize the economy and expand the social safety net. 

Shalanda Young, the acting director of OMB, said interest rates will rise slightly over time, but she believes they will remain comparatively low thanks to “a global, persistent phenomenon” of lower interest.

The White House projects that over time, Biden’s proposals would increase productivity and consumer spending enough to pay for themselves and eventually decrease the deficit in 15 years. 

Biden’s budget has already come under scrutiny from some progressives, who note that it does not include a health-care public option, which was one of Biden’s campaign pledges. 

White House officials said Biden would instead look to Congress to help him create a public option and to pass a bill that permits Medicare to negotiate with pharmaceutical companies on drug prices. 

Like all presidential budgets, Biden’s is one part plan and one part wish list, intended to illustrate the president’s policy priorities as much as it is to inform congressional appropriators.

Dependent upon Congress to actually get passed into law, Biden’s budget will likely be altered in ways big and small before it is finally appropriated by Congress. But with Democrats in control of both chambers this year, Biden has a far better chance of seeing his major priorities reflected in the final outcome than most of his recent predecessors did.

In a statement accompanying the release of the budget, the president said the document is “a budget for what our economy can be, who our economy can serve, and how we can build it back better by putting the needs, goals, ingenuity, and strength of the American people front and center.”

You can read the president’s entire budget here.