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The Cost to Fund the Green New Deal — What You Need to Know

Karen Doyle
solar power station green electricity panel view.
  • The bill proposes eliminating carbon emissions.
  • It would also create millions of jobs.
  • Military cuts and taxes on the rich would be the main sources of funding.

The Green New Deal is a sweeping bill that has been sponsored by Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Ed Markey, D-Mass. The bill, as it is currently written, would eliminate carbon emissions and effectively reform the U.S. economy. It’s a nonbinding resolution that, if passed, would indicate that Congress feels the proposed changes should happen in the future. However, the bill itself wouldn’t create any new programs.

The latest version of the Green New Deal cites these goals:

  • Net-zero greenhouse gas emissions by 2050
  • The creation of millions of “good, high-wage jobs”
  • An investment in infrastructure and industry to “sustainably meet the challenges of the 21st century”
  • To secure for all Americans:
    • Clean air and water
    • Climate and community resiliency
    • Healthy food
    • Access to nature
    • A sustainable environment
  • Promotion of justice and equity

Here’s a closer look at the Green New Deal by the numbers.

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20 Million Green New Deal Jobs

The Green New Deal will “convert the decaying fossil fuel economy into a new, green economy that is environmentally sustainable, economical secure and socially just,” according to the Green Party US website. The bill is expected to generate up to 20 million new jobs and guarantee full employment, with the government being the “employer of last resort.” The bill proposes to shift the United States to 100 percent clean, renewable energy by 2030.

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Up to $1 Trillion Per Year: Cost to Fund the Green New Deal

The cost to fund the proposal is estimated at $700 billion to $1 trillion per year. The public jobs program will require expenditures of $400 billion, and the cost of the transition to clean energy starts at $200 billion a year. The bill proposes cutting military spending to the tune of $500 billion per year, or roughly 50 percent. A carbon tax of $60 per ton would generate $360 billion per year in addition to providing incentives to convert to clean energy. The remaining costs would be funded by higher taxes on the wealthiest Americans.

Related: How Climate Change Will Affect Your Investment Opportunities

11 of 47 Senate Democrats Sponsoring the Green New Deal

Some Democrats have enthusiastically backed the bill, but others remain hesitant. Senate Majority Leader Mitch McConnell is taking advantage of that hesitation by calling for a vote on the bill. McConnell said he’s going to call the vote “to give everybody and opportunity to go on record.” Currently, only 11 of 47 Senate democrats have signed on to the bill as sponsors, and it’s giving moderate democrats — including some 2020 presidential candidates — pause due to its high cost. The bill is not expected to pass the Senate, and is nonbinding in any event, so McConnell’s decision to call for a vote appears to be his way of forcing Democrats to take a stand.

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This article originally appeared on GOBankingRates.com : The Cost to Fund the Green New Deal — What You Need to Know