Sen. Joe Manchin dealt a blow to fellow Democrats and President Joe Biden Thursday, announcing he won’t back a massive social welfare spending package that costs more than $1.5 trillion.
The figure, which Manchin has been floating publicly for weeks, falls far below the $3.5 trillion most House and Senate Democrats say they need at minimum to create a broad array of new government programs and assistance under Biden’s Build Back Better Plan. Manchin’s announcement is likely to thwart efforts to pass a critical bipartisan infrastructure plan on Thursday that Biden hoped to sign into law along with it.
Manchin, speaking to reporters outside the Senate, said he has other problems with the big spending bill Democrats propose. He will not agree to the plan to pay for the bill by raising corporate taxes to 26.5%. Manchin said 25% is his limit, citing the potential damage to the economy and businesses.
The West Virginia Democrat on Wednesday called the Democratic plan to spend $3.5 trillion “fiscal insanity” paid for with “vindictive” taxes.
While he represents only one vote, his support is critical. Senate Democrats hope to pass the bill using a budgetary tactic requiring only 51 votes. The Senate is evenly split, which means one defection would kill the legislation. Sen. Kyrsten Sinema, an Arizona Democrat, also seeks to lower the cost of the $3.5 trillion measure.
Manchin is in no hurry to pass a major spending bill.
Manchin said the smaller bill he proposes should focus on children and the elderly and reforming the tax code, but not the broad array of spending programs liberal Democrats plan, nor the tough green energy policies aimed at ending the use of fossil fuels.
Manchin also said new spending programs must be means-tested to ensure only the neediest benefit.
Manchin’s announcement strikes a blow to the plan by Democrats to pass legislation that would pay for free universal preschool, free community college, expanded Medicare and Medicaid benefits, paid family and medical leave, and an array of new green energy policies, among many other things.
Much of that will have to wait, Manchin suggested.
“Let’s do what we can, and then the other things they want to do, maybe can be done at a later time,” Manchin said.
Manchin’s top-line number and conditions for the bill were part of a signed agreement with Senate Majority Leader Chuck Schumer dated July 28.
Manchin acknowledged the document stating his $1.5 trillion limit, which apparently was used to win his vote on a framework agreement for the spending bill.
He explained how he came up with the number.
“Because I believe in my heart that is what we can do, with the needs we have right now, and what we can afford to do, without basically changing our whole society to an entitlement mentality.”
Manchin has been in talks with Biden for days in an effort to reach an accord that can please all Democrats.
Manchin’s announcement, however, is likely to further alienate liberal Democrats, who are threatening to block a critical infrastructure bill Manchin supports and which the Senate passed with bipartisan support earlier this year.
The bill is up for a vote later Thursday in the House but appears to lack enough support to pass.
Manchin said it would “be a shame” if Democrats block it.
The measure would pay for roads, bridges, water projects, and broadband expansion as well as new electric vehicle charging stations.
Manchin said he disagrees with Democrats who said the two measures need to pass at the same time.
“No two bills should ever be linked together to the point to where you’re going to let the perfect be the enemy of the good,” Manchin said.
Manchin, fielding questions from reporters about anger from fellow Democrats who want to spend much more money while they control Congress and the White House, said those lawmakers must win more seats in the House and Senate in the next election.
“Basically, take whatever we aren’t able to come to an agreement with today, and take that on the campaign trail next year and I’m sure that you’ll get many more liberal progressive Democrats with what they say they want,” Manchin said.
