Build Back Better - Budget Reconciliation The Biden Administration achieved a long-sought bipartisan victory through passage of the Infrastructure Investment and Jobs Act, which authorizes the largest federal investment in physical infrastructure in American history. The Administration now turns its focus to the Build Back Better Initiative (BBB), which seeks to transform the federal government’s social safety net programs and address the climate crisis. The House version of BBB totals an estimated $1.75 trillion. The House version includes an extended childcare tax credit for lower income families, a permanent extension of Medicaid’s Child Health Insurance Program (CHIP), establishes universal pre-K education, seeks to cut costs of higher education, includes funding for workforce development, and includes significant provisions to address climate change. Below is a listing of some of the provisions in the House version of BBB that provide direct funding to Tribal Governments: ● $945 million for IHS health facility construction, maintenance, and improvement ● $100 million for the construction and renovation of Urban Indian health care facilities ● $550 million for BOR potable water supply projects for disadvantaged communities ● $500 million for tribal and Native Hawaiian climate resilience and adaptation ● $500 million for wildfire management Of great importance to Indian Country, the House version of BBB would address several key U.S. Tax Code provisions that have limited infrastructure investment on Indian lands. The House version would: ● Establish an annual bond volume cap for tax exempt bonds for Indian tribes and clarify and broaden the ability of Indian tribes to use such bonds to the same extent that state and local governments have long used these federally guaranteed bonds ● Establish a set-aside within the New Markets Tax Credit program to be used for projects on Indian lands ● Improve the Low-Income Housing Tax Credit program to better ensure that tax credits are directed to new housing projects on Indian lands The BBB will advance through the budget reconciliation process, which requires a simple majority in both the House and Senate. Supporters of the bill contend that the $1.75 trillion price tag is fully offset by tax increases on large corporations and wealthy individuals and will not add to the federal deficit. Pending a review by the Congressional Budget Office, the House is set to debate its version of BBB before the Thanksgiving break. ● $490 million for tribal public safety and justice programs and services ● $715 million to address the BIA Tribal roads deferred maintenance program ● $25 million for emergency drought relief for tribes ● $294 million to provide renewable energy systems to homes on Indian lands The measure will face a number of hurdles in the U.S. Senate, which sets limits on provisions included in legislation that advances through the budget reconciliation process, known as the “Byrd rule”. Senate moderates will likely make additional changes to the BBB measure, which will require passing the bill back to the U.S. House of Representatives for final passage. As a result, it will take Congress much of the next two months to reach an agreement and complete consideration of President Biden’s BBB agenda.
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