This is what Biden’s preliminary finances proposal will imply for NJ

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Here's what Biden's initial budget proposal will mean for NJ

After New Jersey watched for four years warding off proposed spending cuts, New Jersey would see its state benefit through several provisions that President Joe Biden had included in his proposed budget.

The president would spend $ 6 trillion for the fiscal year beginning October 1, which includes elements of his bill for $ 1.9 trillion on coronavirus stimuli and the $ 4 trillion he’ll spend on infrastructure, Demanded education and childcare.

Several programs important to New Jersey, including Amtrak and federal urban grants, were funded by Biden.

Here are some of the highlights for New Jersey:

Amtrak. Biden suggests spending $ 2.7 billion on the passenger transportation system, a 35% increase over current spending levels.

A separate fund of $ 80 million would include grants to Amtrak to upgrade its equipment and stations, more funding for the Northeast Corridor, and funding to develop new routes. Two suggested routes would be from New York via New Jersey to Allentown and Biden’s home, Scranton, Pennsylvania.

Chemical Safety Agency. Congress repeatedly rejected Trump’s calls to kill the agency that investigates chemical accidents and makes safety recommendations. Biden’s proposal calls for $ 2.6 billion in funding.

Drug prices. The budget allows Medicare to negotiate prices for certain expensive drugs with drug companies.

Goal. The budget includes Biden’s $ 2 trillion infrastructure plan, which includes funding for the Gateway Tunnel under the Hudson River. That project cleared another hurdle on Friday when the US Department of Transportation released its Environmental Impact Statement.

The Capital Improvement Grants program, which will help fund the new Portal Bridge and cover the federal government’s stake in Gateway, would increase from $ 2 billion to $ 2.5 billion.

Heating aid. The program, which helps low-income residents to pay for their winter heating bills, is funded from Biden’s budget. New Jersey received $ 120 million last fiscal year.

NJ transit. The state’s mass transit system could receive a $ 85 million share for local public transport.

State and local tax deduction. The 10-year forecast predicts that the provisions of the Republican tax law that affect individual taxpayers will expire in 2025, as planned. This would automatically end the $ 10,000 cap on state and local tax deductions.

Shalanda Young, acting director of the Office of Management and Budget, told reporters on a conference call that the Biden administration would work with Congress to ensure that those earning less than $ 400,000 do not raise their taxes.

Tax credits. Biden suggests extending an improved child tax credit to most families with children, which benefited 1.6 million children in New Jersey, and permanently increasing the tax credit for lower-income Americans with no children, serving 354,000 children without children State would help.

Tax increases. Biden includes his proposed tax increases for wealthy Americans, including raising the top tax rate and taxing capital income for millionaires at the same rate as wages for working Americans. New Jersey would be hardest hit by these tax increases of the 50 states.

City Aid. It would provide $ 3.8 billion in block community development grants to be used for residential and economic development in urban areas. New Jersey and its counties, cities, and towns received a total of $ 88.2 million in 2019.

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Jonathan D. Salant can be reached at jsalant@njadvancemedia.com. Follow him at @JDSalant.

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