Committee for a Responsible Federal Budget
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Full Estimates of the House Build Back Better Act

Nov 18, 2021 | Budgets & Projections

The Congressional Budget Office (CBO) has released cost estimates of each title of the House's Build Back Better Act (H.R. 5376). Before interactions, CBO's figures show the bill will add about $750 billion to the deficit over the next five years and about $160 billion over ten years as written.

Based on CBO's scores, we estimate the House’s Build Back Better Act  includes over $2.4 trillion of spending increases and tax cuts through 2031 and nearly $2.3 trillion of offsets – though the numbers can vary depending on how certain provisions are classified. Because the legislation includes a number of temporary programs with arbitrary sunsets and expirations, ultimate costs could be much higher. We previously estimated that extending temporary provisions in the bill would double its gross costs to nearly $5 trillion.

The below table updated our previous estimate of the fiscal impact of elements of the legislation. 

What's in the Build Back Better Act? 

Policy Cost/Savings (-)
Family Benefits  $585 billion
Establish an affordable child care program (6 years)  $270 billion
Establish a paid family and medical leave program  $205 billion
Provide universal pre-K to all three-and four-year olds (6 years) $110 billion
   
Climate & Infrastructure  $570 billion
Invest in clean energy & climate resilience $235 billion
Establish or expand clean energy & electric tax credits $190 billion 
Establish or expand clean fuel & vehicle tax credits $60 billion 
Establish or expand other climate-related tax benefits $75 billion 
Enact infrastructure & related tax breaks $10 billion
   
Individual Tax Credits & Cuts $215 billion
Extend Child Tax Credit (CTC) increase to $3,000 ($3,600 for kids under 6) for one year; make CTC fully refundable permanently $190 billion
Extend expanded Earned Income Tax Credit (EITC) for one year  $15 billion
Other individual tax changes  $10 billon
   
Health Care  $340 billion
Strengthen Medicaid home- and community-based services  $150 billion
Extend expanded Affordable Care Act (ACA) premium tax credits & make premium tax credits available to those in Medicaid coverage gap through 2025 $130 billion 
Establish Medicare hearing benefit $35 billion
Invest in the health care workforce  $25 billion
   
Other Spending & Tax Cuts  $325 billion
Build & support affordable housing  $175 billion
Increase higher education & workforce spending $40 billion
Other spending & investments $110 billion
   
Reduce or Delay TCJA Base Broadening $280 billion
Increase SALT deduction cap to $80,000 through 2025 $275 billion+
Delay amortization of research & experimentation expenses until 2026  $5 billion'
   
Enact Immigration Reform  $110 billion
   
Subtotal, Build Back Better Act Spending & Tax Breaks  $2.43 trillion
   
Increase Corporate Taxes -$830 billion 
Impose a 15 percent domestic minimum tax on large corporations -$320 billion 
Impose a 15 percent global minimum tax & reform international taxation -$280 billion 
Impose a 1 percent surcharge on corporate stock buybacks -$125 billion 
Enact other corporate tax reforms  -$105 billion
   
Increase Individual Taxes on High Earners  -$640 billion
Expand the 3.8 percent Net Investment Income Tax -$250 billion
Impose a 5 percent surtax on income above $10 million & an 8 percent surtax on income above $25 million -$230 billion
Extend and expand limits on deductibility of business losses -$160 billion
   
Other Revenue -$180 billion
Reduce the tax gap by funding IRS & other measures  -$130 billion*
Reinstate superfund taxes on oil & impose methane fee  -$20 billion
Expand nicotine taxes -$10 billion
Reform tax treatment of retirement accounts -$10 billion
Other receipts -$10 billion
   
Health Care -$325 billion
Repeal Trump Administration drug rebate rule  -$145 billion
Reform Part D formula, cap drug price growth, & allow targeted drug price negotiations -$160 billion
Reduce DSH payments beyond 2025 -$20 billion*
   
Establish $80,000 SALT deduction cap from 2026 through 2030 & $10,000 cap in 2031 -$290 billion+
   
Subtotal, Build Back Better Act Offsets  -$2.27 trillion
   
Net Deficit Increase, House Build Back Better Act  ~$160 billion

Sources: Congressional Budget Office, Joint Committee on Taxation, and Committee for a Responsible Federal Budget. 
+The House fully pays for an increase in the SALT deduction cap through 2026 on paper by extending the cap beyond 2026 after most provisions of the TCJA have expired. While this change raises revenue relative to current law, it would substantially increase the cost of extending the TCJA and thus is likely to result in lower revenue collection over time. We nonetheless count the new revenue as an offset in our official tally. Note that if changes to the SALT cap were all counted on the offset side, total gross costs about be roughly $2.16 trillion rather than $2.43 trillion and offsets would be roughly $2 trillion.
'Represents the net cost of temporarily delaying the switch to amortization of research and experimentation expenses – the policy costs $126 billion through 2025. 
*DSH reductions through 2025 are subtracted against the ACA expansion. 

You can read more details on the specific estimates here. Separately, we've tallied the CBO score by bill title here

Read more options and analyses on our Reconciliation Resources page.