Biden Releases New BudgetApril 1, 2022
On Monday, March 28, the White House released the multimillion-dollar budget proposal for FY 2023. The proposal includes a section on expanding opportunities for workers and small businesses, which outlines:
- Expanding access to capital for small businesses: increases the authorized lending levels in key U.S. Small Business Administration (SBA) programs by a total of $9.5 billion.
- Supporting minority-owned businesses to narrow racial wealth gaps: increases the capacity of the Minority Business Development Agency by providing the full $110 million authorized in the Bipartisan Infrastructure Law.
- Creating new global markets for American goods: an additional $26 million to bolster commercial diplomacy.
- Equipping workers with skills: invests $100 million to help community colleges implement successful workforce programs, and provides $100 million for a program to support training programs focused on growing industries.
- Expanding access to registered apprenticeships (RA): invests $303 million to expand RA opportunities in fields such as information technology, advanced manufacturing, healthcare, and transportation.
Other highlights of the budget include:
- National defense: $813 billion for national defense, including $773 billion for the Pentagon, which is $30 billion more than approved by Congress for this year. Many in Congress are expected to push for a higher increase, including the threat of Russian aggression and Chinese military modernization efforts.
- Repeal Trump-era tax cuts: The corporate tax rate would be increased from its current rate of 21 to 28 percent, and the top individual tax rate would be increased to 39.6 percent. Given that 83 percent of small businesses are passthrough entities and pay business taxes on the individual level, this disparity between larger companies could mean a large, multi-billion company would pay a 10 percent lower tax rate than a small business.
- Billionaire tax: 20 percent in taxes on a combination of income and unrealized gains in assets for the top 0.1 percent of earners. The administration estimates this would raise $360 billion over the next 10 years.
- Climate: $18 billion to help the country withstand worsening wildfires, floods, and storms fueled by rising temperatures. The proposal also includes $11 billion to help other countries transition to cleaner energy, and $17 billion for climate research across federal agencies.
- Pandemic preparedness: $81.7 billion over five years to bolster pandemic preparedness and biodefense.
- Infrastructure: $68 billion for the highway program, which will help states fix roads and bridges, prepare infrastructure for volatile weather events, and boost electric vehicle charging infrastructure.
You can find the full budget proposal here.