Big pressure on Biden and Democrats to cut federal overhaul by $ 3.5 billion
Pressure mounts, President Joe Biden and Democrats in Congress struggled on Tuesday to reduce its historic potential $ 3.5 trillion government review for win the support of two recalcitrant main senators before the crucial deadlines for the votes.
With Republicans firmly opposed and no votes to spare, Biden canceled a trip to Chicago on Wednesday that was to focus on COVID-19 vaccinations so he can continue working on a deal, according to a White House official who has obtained anonymity to discuss planning.
Democrats are set to adjust the tax proposals and the huge measure’s spending targets to meet the overall size demanded by party colleagues Joe Manchin of West Virginia and Kyrsten Sinema of Arizona. Both say Biden’s plan is too big but are publicly silent on a number they can live with.
The president met with them separately on Tuesday at the White House, making apparent progress ahead of a test vote on Thursday.
As the legislation becomes clearer, adjustments will follow – childcare subsidies could be offered for several years, or only a few years. Financing of expand health care programs could start later or end earlier. Tax increases on corporations and the wealthy can be adjusted. And provisions to tackle climate change or lower prescription drug prices could change.
Assuming nothing, House Speaker Nancy Pelosi told reporters on Capitol Hill: “In the next few days, we hope to get to a place where we can all move forward.”
The the stakes are higher than ever as Biden and his party attempt to accomplish a giant legislative lift, promising a vast rewrite of the country’s fiscal priorities and spending targets with an oh-so-thin majority in Congress.
Biden is under pressure to strike the deal with the Sens centrists. Manchin and Sinema, who are seen as kingpins for the final package.
“Really good, honest and straightforward negotiations,” Manchin told reporters on Capitol Hill after his White House meeting with Biden. He said he had not given the president a new topline number.
Biden’s problems with his fellow Democrats aren’t confined to the Senate. A small number of House Democrats are also bristling with the broad reach of his national agenda and demanding change.
“We are obviously at a very sensitive time,” White House press secretary Jen Psaki said.
The president, she said, “is not going to tell anyone what to do. He’s going to have a discussion, to have a commitment.
The closed-door talks come after Republican senators for the second time blocked a bill to keep the government in business after Thursday and allow federal borrowing, risking a federal shutdown and a devastating default – well that both seem highly improbable.
Democrats have said they will try again before Thursday’s deadline to pass a bill funding government operations after the fiscal year ends on September 30, likely suppressing the more heated debate over the limit of the debt for another day, closer to a separate maturity in October.
Taken together, all of this brings the entire Biden agenda dangerously close to collapse, with consequences that will certainly shape his presidency and the political future of lawmakers.
Treasury Secretary Janet Yellen told Congress in a letter on Tuesday, October 18 is a critical date – when the Treasury Department is likely to exhaust all of its “extraordinary measures” taken to avoid government default.
Yellen urged Congress to “protect the full faith and credit of the United States by acting as soon as possible” to either raise the debt limit or suspend it.
Meanwhile, the behind-the-scenes action on the $ 3.5 trillion measure is testing Biden’s grip on his party, as he seeks to rework the country’s balance sheets once in a generation.
Lobbying, Progressives have so far been steadfast in their refusal to accept an expected vote Thursday on a companion bill, a $ 1 trillion public works measure they say is too meager without the most. big package of Biden insured.
Representative Pramila Jayapal, D-Wash., Chair of the Congressional Progressive Caucus, said they have the votes to derail the smaller bill unless it comes with a larger bill from Biden – tacit pressure on the recalcitrant to reach an agreement. Senator Bernie Sanders, I-Vt., Called for a vote no.
“It won’t be the end of the world on Thursday if we vote against it,” said Rep. Hank Johnson, D-Ga., A member of the Progressive Caucus. He said the House would just wait for the Senate to act on Biden’s plan, “and then we’ll vote again.”
With all Republicans opposed to the big bill, Democratic leaders cannot spare a single vote in the Senate 50-50, relying on Vice President Kamala Harris to break the tie and pass the eventual package.
Physically holding the 2,000-plus-page bill, Republican Senator John Barrasso of Wyoming warned that it was just “great government socialism.”
“This bill represents Bernie Sanders’ socialist dream. It’s a nightmare for American taxpayers, ”he said.
Biden insists the price will actually be zero because the expansion of government programs would be largely funded by higher taxes on corporations and the wealthy – businesses earning over $ 5 million per year and individuals earning over $ 400,000 per year, or $ 450,000 for couples.
To lower the price and win the centrist Democrats, there is no need to cut specific programs, said those familiar with the process.
Rather, lawmakers are considering ways to adjust the scope and duration of some of Biden’s proposals.
For example, instead of more immediately launching the massive expansion of the Medicare program for the elderly by allowing them to receive benefits for vision, dental care and hearing aids, the changes could be spaced out to save money. . Or similarly, funding to expand Medicaid and the Affordable Care Act might have an end date rather than continuing.
The corporate tax increases, proposed from 21% to 26.5% in the House version of Biden’s bill, could change again in talks with Senate Democrats.
Failure to fund all program extensions indefinitely could well be seen as a loss for Democrats. But some see the built-in deadlines as a chance to reconsider the issues – possibly during election years, when both sides can make their case before voters.
Tensions are mounting on Capitol Hill as the outlines of Biden’s grand agenda become clear along with a Democratic-Republican standoff over normally routine votes to fund the government and prevent a federal debt default.
For a second day on Tuesday, Senate Republicans rejected an effort to ease the country’s debt limit to avoid a dangerous default on its payments for past bills.
Republican leader Mitch McConnell became irritable with reporters when asked about Yellen’s warning that Congress must resolve the issue quickly.
“Of course, the debt ceiling has to be raised,” he said. But he insisted that Democrats shoulder the unpopular vote on their own.
Republicans on Monday rejected Democrats’ efforts to tie the debt ceiling vote to the must-have funding bill to keep government running.
An infuriated Senate Majority Leader Chuck Schumer said: “It is clear that madness and disaster are now the line of the Republican Party.”