Biden’s $1.7B Build Back Better plan is dead, but Dems might try to Build Back Smaller

Build Back Busted… the president’s nightmare before Christmas. Biden’s $1.7T Build Back Better bill has no path forward: In a surprise move over the weekend, Democratic Sen. Joe Manchin withdrew his support for the bill, which featured big spending on social programs and climate-friendly perks, like universal pre-K, cheaper prescriptions, and EV tax credits.

• The plan passed the House last month but needs the support of every Senate Democrat (including Manchin) to become law.
• Dems trimmed their original $3.5T plan down for months to appease Manchin and other cost-conscious moderates, but it wasn’t enough.
• The Senate still plans to vote on the plan in the new year. The latest iteration has almost no shot, though a slimmed-down version might pass.

Dinner is not served… The $1T infrastructure bill that the Senate passed in August is still happening. It includes hundreds of billions to modernize roads, bridges, and transit — but Dems saw it as an appetizer to this larger plan. BBB included $500B+ in climate spending, which would’ve been the US’s largest green investment ever.

• Pros: The plan could’ve boosted consumer spending and access to opportunity through programs like subsidized childcare and universal pre-K. It might’ve brought the US much closer to its climate goals.
• Cons: The $1.7B plan would’ve added an estimated $367B to the US deficit over a decade, adding to the ginormous debt and possibly spurring inflation. It could’ve also dampened investment and entrepreneurship by hiking taxes on corporations and the ultrawealthy.