Joe Biden To Set Aside $500B For Climate Change: Could Be Biggest Component Of Social Spending Package

Joe Biden
Joe Biden

The climate part of expenditure has been almost settled and could turn out to be the biggest part of Joe Biden’s social spending plan. The total plan is expected to be settled at somewhere between $1.5T to $2T. This ensures Joe Biden’s roughly $2T for social spending. 

Insiders have revealed that the climate expenditure has been almost settled and would entail an expenditure of around $500B. This component is not changing much from the $600B price tag when the social spending plan was presented with a $3.5T price tag, as initially proposed by Joe Biden. 

Climate Plan Expenditure Least Affected By Cut Down Form Initial Proposed By Joe Biden

The details of the social spending bill are being worked out and would include advanced electric vehicles and energy manufacturing, incentives to support electrical transmission investments, sustainable aviation fuel, storage of energy, a tax credit to support renewable power.

It is not clear if the bill includes an allocation for charging stations for the electrical vehicle. Senator Joe Manchin (Democrat) is opposed to it and has also killed off the initial allocation of $150 billion to the Clean Electricity Performance Program.

Senator Manchin is chairman of the Senate Committee on Energy and Natural Resources and will have the final say on ways to expend leftover funds.

Senator Ron Wyden, who chairs the Senate Finance Committee said he believes negotiators to devote the allocation to energy storage and transmission.

Industrial decarbonization is also anticipated to be among the beneficiaries and would include tax credits supporting this goal.

Support for the growth of domestic supply for offshore, onshore winds, and solar energy.

Rooftop solar electrification will have more access to funds. Rural cooperatives will get loans and grants to boost energy efficiency and clean energy.

The agriculture sector will also benefit from expanded loans and grants. This will help them move to green energy with low greenhouse gas discharges.

The Conference of Parties is a big push for Joe Biden and the Democrats, and they will move on to Glasgow for the UN Climate Conference. 

It is vital for Joe Biden’s credibility to move to the climate conference with the framework settled and behind him.