July 1, 2022: FY2022 Budget Reconciliation and Infrastructure Update

Policy Resolution Group Reconciliation & Infrastructure Update

July 1, 2022

FY2022 Budget Reconciliation & Infrastructure 

Heading into the 4th of July recess, Democratic leadership have yet to strike a reconciliation deal with Sen. Joe Manchin (D-WV). This relative period of calm, however, could promptly turn into a legislative compromise should Majority Leader Chuck Schumer (D-NY) and Sen. Manchin reach agreement over the core titles related to repealing Trump era tax cuts, reforming prescription drug pricing, and enacting clean energy tax credits. This agreement, of course, would still need to secure the support of the rest of the Democratic caucus, a potentially difficult task given likely opposition to tax increases from Sen. Kyrsten Sinema (D-AZ) and moderate House Democrats. An additional complicating factor, whose effect remains to be seen, came on Thursday night when Senate Minority Leader Mitch McConnell (R-KY) explicitly tied the fate of a bipartisan China competitiveness package to the reconciliation bill: "there will be no bipartisan USICA as long as Democrats are pursuing a partisan reconciliation bill." This threat may allow Democratic leadership to shift attention away from the bipartisan process towards reaching a partisan compromise, or it may throw another wrench into already fraught negotiations. With a narrowing timeline for legislative action, the next few weeks remain as crucial as ever for the Democrats to pass a signature piece of their agenda. Please find below the latest edition of the Policy Resolution Group’s FY2022 Budget Reconciliation & Infrastructure Update.

Included in this newsletter are sections on:
• State of Infrastructure and Reconciliation Negotiations
• Liam Donovan’s Bottom Line
• PRG Podcasts
• Document Library

Read the full update.