The Senate Budget Resolution Would Allow $1.75 Trillion of Borrowing

Senate Budget Committee Chairman Bernie Sanders (I-VT) released a budget resolution for Fiscal Year (FY) 2022 today that allows for up to roughly $1.75 trillion of new borrowing through the reconciliation process.

The budget resolution contains reconciliation instructions for 12 Senate committees that allow them to increase deficits over the next decade. Most significantly, the budget resolution would allow over $726 billion of borrowing for the Health, Education, Labor, and Pensions (HELP) Committee and $332 billion for the Banking, Housing, and Urban Affairs Committee.

In addition, the Finance Committee is instructed to reduce deficits by at least $1.0 billion, which would allow that committee to put forward their intended $1.8 trillion of gross spending and tax breaks (according to a published fact sheet) along with new tax increases and health savings to at least cover the costs. The nominal savings target would also allow the committee to go further to pay for some or all of the borrowing enacted from other committees. Committees are required to submit legislation to the Senate Budget Committee by September 15, though the date is not binding.

Senate FY 2022 Budget Resolution Senate Reconciliation Instructions

Source: Senate Budget Committee.

The Senate budget resolution also includes nearly $1.98 trillion of reconciliation instructions for 13 House committees, including over $779 billion for the Education and Labor Committee and over $486 billion for the Energy and Commerce Committee. This total likely includes some legislative changes covered by multiple committees so that total new borrowing would not exceed the Senate's number of $1.75 trillion. Like the Senate Finance Committee, the House Ways and Means Committee has instructions to reduce deficits by at least $1.0 billion – requiring it to pay for all spending under its jurisdiction and allowing it to cover spending from other committees.

Senate FY 2022 Budget Resolution House Reconciliation Instructions 

Source: Senate Budget Committee.

We will publish additional analyses in the coming days and weeks. See our press release on the FY 2022 budget resolution here. 

Read more options and analyses on our Reconciliation Resources page.