Senate Majority Leader Schumer Moves On New Reconciliation Bill

Senate Majority Leader Chuck Schumer (D-NY) and Senator Ron Wyden (D-OR) Chairman of the Senate Finance Committee have summitted the initial text of a new reconciliation bill to the Senate parliamentarian for scrutiny.

• The final form of the new bill, built from the framework of the Biden administration's flagship social spending and climate bill Build Back Better, will be dependent on negotiations between Schumer and Senator Joe Manchin (D-WV), the senator who torpedoed the original bill in December.
• The move by Schumer is a gamble which may have broader implications for other key pieces of legislation, and the midterms, as a final agreement on a bill is not certain. Manchin has agreed to a Medicare provision which was a uniformly popular item in the original bill. The stickier negotiations over climate, taxation, and social spending and still outstanding.
• The problem for Schumer: Time on the Senate floor is rapidly running out. Congress will recess in August meaning that significant legislative movement has to take place this month.
• A reconciliation package will dominate most remaining Senate time in July, meaning that other legislative items may have to be scrapped.
• Jake Sherman of Punchbowl: "This has HUGE impacts. This means that the conversation in DC over July will be will they or wont they get a deal on reconciliation, which we call BUILD BACK MANCHIN."
• The USICA (CHIPS) Act is one of these bills on the chopping block. The China competitiveness bill has been languishing in conference for months despite public calls from the Commerce Department and the White House for conferees to reach an agreement.
• Another complication comes from across the aisle. Senate Minority Leader Mitch McConnell issued this threat last week: "Let me be perfectly clear: there will be no bipartisan USICA as long as Democrats are pursuing a partisan reconciliation bill."
• The Biden administration has called CHIPS "vital for US national security". Losing the bill would be a blow to the Democrats who have touted the private sector investment stimulated by the bill. Perhaps a worse blow would be failing to advance a reconciliation bill before a likely loss of Congressional control in November. There is a real chance, however, of the Democrats failing to pass either bill which would be a significant setback for Biden and the Democrats so close to the midterms.