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Pelosi Adds Back Paid Leave and Increased Salt Deduction to Build Back Better Bill

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

Speaker of the House Nancy Pelosi, D-Calif., on November 3 added paid family and medical leave back into the $1.75 social infrastructure bill after input from members of the House Democratic Caucus. The revised bill also increases the state and local tax deduction to $75,000 from $10,000 cap through 2031. The House Rules Committee was expected to consider the amendment the same day.

“As we are reviewing priorities and at the urging of many members of the Caucus, I have asked the Ways and Means committee for its legislation for paid Family and Medical Leave to be included in this morning’s hearing,” wrote Pelosi in a Dear Colleagues letter.

“Now, because of the leadership and tireless advocacy of the people’s House, meaningful paid family and medical leave will be included as part of the Build Back Better Act,” said House Ways and Means Chairman Richard Neal, D-Mass., in a written statement.

Including paid leave, however, may not fly in the Senate where Sen. Joe Manchin, D-WVa., said adding paid leave to a reconciliation bill is a “challenge” and he wants to do it on bipartisan basis. House Democrats assume that any reconciliation bill they pass will likely undergo changes in the Senate, but they are looking for assurances that Senate lawmakers will support the main provisions in the bill before moving forward. Pelosi can only afford to lose four Democratic votes for the reconciliation bill to pass in the House.

In addition, five House moderates have said they want to see cost projections from the Congressional Budget Office before voting in the House. Another three House Democrats met with Pelosi November 3 demanding that an immigration overhaul be included in the Build Back Better package.

According to one House member the issue has not been resolved. “We’re working it,” said Rep. Lou Correa, D-Calif.

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