President Biden's fiscal 2023 budget will call for additional military spending in the face of Russian aggression toward Ukraine, domestic funding for child care and police departments along with new taxes on the wealthiest Americans.
The proposal will be released on Monday and could be the last piece of Mr. Biden's legislative agenda.
Mr. Biden plans to ask Congress to help his administration tackle some of the biggest concerns facing voters, including soaring inflation that has hurt consumer confidence and is contributing to an overall sense of economic weakness. The president's budget will propose policies that will reduce energy, health care, child care and other costs for families, according to a senior administration official.
The international crisis caused by Russia's invasion of Ukraine threatens to slow the global economy.
According to people familiar with the proposal, Mr. Biden wants to increase national security spending by 4 percent. Funding for the Defense Department will include over $4 billion to conduct research and develop defense capabilities, over $5 billion for a space-based missile warning system to detect global threats, and over $2 billion for a missile defense system to protect the United States against threats from states like North Korea and Iran.
An update on how the administration plans to advance the spending and tax priorities included in Mr. Biden's Build Back Better plan had to be scaled back last year.
The president's budget proposal will either outline the administration's policy priorities or include a plan to pass his agenda through a slim majority in Congress. One White House official said the budget would echo Mr. Biden's State of the Union address, which focused on Russia's invasion of Ukraine and listed his domestic policy proposals without mentioning the label "build back better".
"You try to use a budget to indicate how you're moving forward in a negotiation to actually getting something done while also telling your base here what we truly believe."
For the first time, the White House will propose to give Veterans Affairs medical funding its own stream of funding. According to officials familiar with the matter, the administration plans to use the budget proposal to send a message to Congress that funding for veterans should be the same priority as national security.
According to a White House document released on Saturday, the proposal aims to cut federal deficits by more than $1 trillion over the next decade.
The budget will include a minimum tax on billionaires, which will require American households worth more than $100 million to pay a rate of at least 20 percent on their income as well as unrealized gains in the value of their liquid assets. The revenue could be used for the president's agenda.
Cecilia Rouse, the chair of the White House's Council of Economic Advisers, said last week that Mr. Biden still wanted to invest in improving access to child care, prescription drugs and health care, without adding to the federal deficit.
The president isn't just looking to make these investments asStimulus, but he is committed to deficit reduction along the way as well.
The White House's projections for economic growth and inflation are at their highest level in 40 years. Political implications could come from the forecasts.
It will become political fodder for Republicans if an inflation estimate is too low, but too high, according to analysts at Beacon Policy Advisors.
On Friday, the Treasury Secretary acknowledged that the global economy is facing challenges and that Russia's invasion of Ukraine could cause inflation. Despite those concerns, she predicted that the U.S. economy is well situated.
The balance sheet of the typical American family is in good shape, Ms. Yellen told CNBC.
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