WASHINGTON (TND) — President Biden released his $7.3 trillion budget proposal for Fiscal Year 2025 on Monday, up from $6.9 trillion in 2024, establishing his priorities heading into the 2024 election.

Biden says the budget aims to cut the federal deficit by $3 trillion over the next decade, largely by increasing taxes on billionaires and corporations. For one, the proposal calls to raise taxes for billion-dollar companies from 15% to 21% and set the broader corporate rate at 28%. Additionally, it calls for a new 25% minimum tax on the wealthiest 0.01% of Americans or those with more than $100 million.

The proposal also calls for an additional $8.7 billion in funding for the Department of Homeland Security for things like hiring more asylum officers and Border Patrol agents; more emergency aid for Ukraine; increased Medicare taxes on Americans who earn more than $400,000 a year; and bringing back the expanded child tax credit from the American Rescue Plan.

The president’s role in the actual federal budget is nothing more than a policy tool used to express their goals.

The Constitution gives Congress the authority to tax and create a budget; thus, the president does not have an explicit Constitutional role in the process.

"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States."

In 1921, however, Congress created a statutory requirement for the president to submit a proposed budget each year. Congress is not required to adopt the president’s recommendations.

Now that Biden has submitted his budget proposal, it heads to Congress where it will serve as a starting point for negotiations. There are several steps in this process. The next big step is for Congress to create its spending plan – called a Budget Resolution – which is then used to pass a series of spending bills that fund the government. There are typically twelve spending bills called Appropriations. The deadline for this is Oct. 1.

Congress has not passed all of last year’s spending bills – including military, Homeland Security and healthcare – which is why there is still potential for a government shutdown on March 22. According to the Pew Research Center, in nearly five decades, Congress has only passed all of the required spending measures four times: 1977, 1989, 1995 and 1997.