Manchin Says Biden Plan ‘Dead’, Must Start From Scratch

(Bloomberg) -- Democratic Senator Joe Manchin said President Joe Biden's $2 trillion Build Back Better plan is “dead,” and any talks on reviving key parts of it must start from scratch.

“What Build Back Better bill?” Manchin said Tuesday when asked about the legislation. “It's dead.”

He told reporters in the Capitol that any new discussions have to start with a clean slate. “Whatever we are going to come up with, anything you want to be put on the table we can talk about.”

The West Virginia lawmaker has cited concerns that the social spending in the bill would only worsen soaring inflation. But he was more emphatic Tuesday in his choice of words on the tax, climate and social spending plan that is the centerpiece of Biden's economic agenda.

Manchin, a pivotal Democratic vote in the 50-50 Senate, broke off negotiations with the White House in December and killed a year-end drive to pass the legislation. Biden has acknowledged that the package would have to be broken up in order to make it through Congress but he still hopes some “chunks” of the bill will survive.

Senate Majority Leader Chuck Schumer said Tuesday he still is working on resurrecting some version of the legislation, though he gave no timetable.

“There are lots of provisions in that bill that are very important, many of which Senator Manchin supports, such as say drug pricing,” Schumer said. “So we are continuing to work on it and there are conversations going on between Senator Manchin and different senators right now.”

Earlier: ‘Fight Like Hell': Democrats Draw Lines on Slim Biden Plan

White House press secretary Jen Psaki on Tuesday declined to say whether administration officials were in contact with Manchin or other Democrats. She said there is “strong support” in the party for many of the provisions, such as those affecting child care, health care, prescription drug prices “and ensuring the tax system is fair.”

Manchin said he's had no direct talks with the White House since December. However he signaled there could be a deal on revising the tax code and lowering prescription drug costs, calling those two goals “extremely doable.” He has expressed openness to a climate change bill, but has said it must balance the needs of the fossil fuel industry including possible easing of gas pipeline permits.

Senate Finance Chair Ron Wyden said Tuesday he had just spoken with Manchin on the climate change tax credits in the Biden plan and that an agreement could be at hand.

The expanded child tax credit, which expired in December, is seen as more problematic, given Manchin's concerns about its contribution to price inflation and his demand for work requirements to receive benefits.

“We cannot allow it to die. If Senator Manchin chooses to fight for the interests of corporate America on this issue, that is his business,” Senate Budget Chair Bernie Sanders, one of the architects of the economic plan, said of the bill. “But I believe ordinary Americans want us to fight for the needs of working families.”

But Manchin said there is no proposal now before the Senate, which should focus instead on fiscal 2022 appropriations bills and legislation aimed at boosting U.S. competitiveness with China.

He also again raised concern about the impact on the federal budget in the face of other challenges.

He cited the potential for a Russian offensive in Ukraine, saying “that's going to be a big cost sometime sooner or later.”

“And on top of that, Covid,” Manchin said. “Which way Covid is going and on how that is going to affect our economy. So those are still the driving forces.”