• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
PoliticsCongress

The House backs Biden’s $3.5 trillion budget plan

By
Billy House
Billy House
,
Erik Wasson
Erik Wasson
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Billy House
Billy House
,
Erik Wasson
Erik Wasson
, and
Bloomberg
Bloomberg
Down Arrow Button Icon
August 24, 2021, 5:06 PM ET

The U.S. House adopted a $3.5 trillion budget resolution Tuesday after a White House pressure campaign and assurances from Speaker Nancy Pelosi helped unite fractious Democrats to move ahead on the core of President Joe Biden’s economic agenda.

The 220-212 vote puts to rest, for now, an intra-party rift between progressives and moderates that threatened to derail Pelosi’s strategy for shepherding the budget framework and a separate $550 billion bipartisan infrastructure bill through Congress. 

To avoid a showdown on the floor, Pelosi orchestrated Tuesday’s roll call to avoid a direct vote on the budget resolution. Pelosi used a procedural maneuver that deemed it passed once the House adopted a rule governing floor debate for two other measures—the infrastructure bill and voting rights legislation. No Republicans voted in favor of the rule. 

“Today is a great day of pride for our country and for Democrats,” Pelosi said on the floor before the vote.

The Senate already cleared the budget resolution on a 50-49 party-line vote. Tuesday’s House vote paves the way for the reconciliation process, in which committees write the details of the budget framework into tax and spending legislation the House and Senate will vote on this fall. Using reconciliation means Democrats can push it through the Senate without the threat of a Republican filibuster.

Pelosi released a statement committing to passing the separate infrastructure legislation by Sept. 27.

Ten moderate Democrats led by New Jersey Representative Josh Gottheimer had been pushing to pass the infrastructure legislation now. 

But progressives have demanded the House take up the budget resolution, which encompasses many of their priorities, and hold off passing the infrastructure legislation as leverage to make sure the Senate addresses their priorities.

Tension remains

Representative Alexandria Ocasio-Cortez of New York was among the progressives who warned Tuesday that House leaders must keep their commitment to them and wait for the Senate to pass reconciliation before they take up the infrastructure bill. 

“If that is not the case then they shouldn’t count on us,” she said, emphasizing that the Sept. 27 deadline set in the rule for infrastructure isn’t binding. 

House Majority Leader Steny Hoyer told reporters the goal is to pass both bills by the end of September “if we can.” 

In life, “you don’t necessarily get everything you want at the same time,” Hoyer said. “The U.S. Congress is no different.” 

Pelosi’s maneuver, a so-called “self-executing rule,” is typically used by House leaders when they do not have the votes and want to avoid an embarrassing defeat on the floor. 

Pelosi bet that moderates, who support both the voting rights legislation and the infrastructure package, would be reluctant to vote against the rule advancing those measures. Moderates, however, refused to budge until they received explicit assurances that the House would vote on the infrastructure bill by Sept. 27. 

Structuring the budget resolution as deemed passed gives moderates—some of whom are hesitant about the $3.5 trillion price tag—some political cover after their public break with party leaders and progressives in recent weeks. 

“I think it’s important that those of us who are moderate Democrats make sure that our voices are heard,” Representative Jim Costa of California said. “We’re representing our constituencies.” 

The House now is set to pass the voting-rights legislation on Tuesday, but leave the infrastructure bill until late September. 

White House pressure

Biden and his top aides made calls to moderates and other House Democrats prior to the vote to again emphasize White House support for Pelosi’s strategy and the importance of the budget resolution, the infrastructure bill and the voting rights legislation, according to officials.

House and Senate committees are already at work trying to craft portions of the spending package that will fill in the details of the budget resolution on climate change, tax hikes on corporations and the wealthy, tuition-free community college, a Medicare expansion and more.

But the dissent among Democrats demonstrates the difficult negotiations Pelosi and Senate Majority Leader Chuck Schumer will face as they try to steer the multi-trillion-dollar legislative package through Congress in the coming weeks. The budget resolution sets a Sept. 15 deadline for the congressional committees responsible for drafting the tax and spending legislation, a tight timeframe, with lawmakers scheduled to be away from Washington until the middle of the month.

Some moderate Democrats in both chambers have balked at the $3.5 trillion price tag of the spending package, and others have expressed concerns about some of the tax hikes for corporations and high-income individuals that are part of that plan.

“It’s not going to be easy, but we have two things going for us: One is that these provisions represent longstanding Democratic priorities and secondly they’re wildly popular with the American people according to polls,” Budget Committee Chairman John Yarmuth,  a Kentucky Democrat, said. 

Congress also faces a collision of crucial deadlines in September. Lawmakers will have to pass a stopgap funding bill to avoid an Oct. 1 government shutdown, and they’ll have to raise the nation’s debt ceiling around the same time to avoid a default on federal payment obligations.

—With assistance from Laura Litvan

More politics coverage from Fortune:

  • The true cost of the 20-year war in Afghanistan, in 5 charts
  • What a Taliban-controlled Afghanistan means for the rest of the world
  • Is “Big Day Care” the solution to America’s childcare woes—or is it risky to mix profits and toddlers?
  • Commentary: The infrastructure bill shows why Congress must stop enabling bad behavior by cities and states
  • The politics behind President Biden’s plan to lower prescription drug prices

Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.

About the Authors
By Billy House
See full bioRight Arrow Button Icon
By Erik Wasson
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

Middle EastIran
Trump extends his deadline for Iran to reopen the Strait of Hormuz to April 6
By The Associated Press, Jon Gambrell and David RisingMarch 26, 2026
2 hours ago
Young woman looks at her computer looking stressed and holding a credit card
Economystudent loans and debt
Gen Z’s credit scores are cratering—and Trump’s student loan crackdown is the biggest reason why
By Tristan BoveMarch 26, 2026
6 hours ago
kennnedy
CommentaryDrugs
America is handing its mRNA lead to China—and RFK Jr. is to blame
By Jeff CollerMarch 26, 2026
12 hours ago
posner
PoliticsElections
Trump said low-income housing would destroy the suburbs, but ‘soccer moms’ are still abandoning him in droves
By Steve Peoples and The Associated PressMarch 26, 2026
12 hours ago
airport
PoliticsAirports
Houston airport, with nearly 40% TSA sickout, becomes symbol of America’s broken travel system
By Juan A. Lozano, Lekan Oyekanmi and The Associated PressMarch 26, 2026
12 hours ago
meta
LawSocial Media
Meta, YouTube face thousands of cases on whether they harmed children after bellwether cases go against them
By Morgan Lee and The Associated PressMarch 26, 2026
12 hours ago

Most Popular

C-Suite
'I didn’t want anybody shooting me': Five Guys CEO gave away $1.5 million bonus to employees over botched BOGO burger birthday celebration
By Fortune EditorsMarch 25, 2026
1 day ago
Success
Palantir’s billionaire CEO says only two kinds of people will succeed in the AI era: trade workers — ‘or you’re neurodivergent’
By Fortune EditorsMarch 24, 2026
2 days ago
Environment
Vail Resorts CEO says it’s time to think beyond the $1,000 ski pass that helped build the empire
By Fortune EditorsMarch 26, 2026
17 hours ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
3 days ago
Success
JPMorgan’s Jamie Dimon says remote work breeds ‘rope-a-dope politics’ and stunts young workers’ growth
By Fortune EditorsMarch 25, 2026
1 day ago
Magazine
The youngest-ever female CEO of a Fortune 500 company is fighting Trump's cuts to keep Medicaid strong
By Fortune EditorsMarch 24, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.