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The Senate Budget Resolution Would Allow $1.75 Trillion of Borrowing

Aug 9, 2021 | Budgets & Projections

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

Committee Maximum Allowed
Health, Education, Labor, and Pensions  $726.4 billion
Banking, Housing, and Urban Affairs $332.0 billion
Energy and Natural Resources  $198.0 billion
Agriculture, Nutrition, and Forestry  $135.0 billion
Judiciary  $107.5 billion
Commerce, Science, and Technology $83.1 billion
Environment and Public Works  $67.3 billion
Homeland Security and Governmental Affairs  $37.0 billion
Small Business and Entrepreneurship $25.0 billion
Indian Affairs  $20.5 billion
Veterans' Affairs $18.0 billion
Finance  at least $1.0 billion of savings
Total  $1,748.72 billion

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 

Committee  Maximum Allowed
Education and Labor $779.5 billion
Energy and Commerce $486.5 billion
Financial Services  $339.0 billion
Judiciary  $107.5 billion
Agriculture  $89.1 billion
Transportation and Infrastructure  $60.0 billion
Science, Space, and Technology  $45.5 billion
Natural Resources  $25.6 billion
Veterans' Affairs  $18.0 billion
Small Business $17.5 billion
Oversight and Reform $7.5 billion
Homeland Security  $0.5 billion
Ways and Means at least $1.0 billion of savings
Total (not accounting for interactions)  $1,975.21 billion

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