July 15, 2022: FY2022 Budget Reconciliation and Infrastructure Update

Policy Resolution Group Reconciliation & Infrastructure Update

July 15, 2022

FY2022 Budget Reconciliation & Infrastructure 

The fate of a partisan reconciliation bill remains up in the air, as Senator Joe Manchin (D-WV) has stated he is "very, very cautious" about including measures that could contribute to inflationary pressures after the most recent inflation report showed inflationary rates once again reaching a 40-year peak. On Thursday, July 14, reports surfaced that Senator Joe Manchin (D-WV) informed Democratic leadership that he will not support a reconciliation package that includes clean energy tax credits or new tax increases. Instead, those reports indicated that Sen. Manchin only desires for a bill to extend Obamacare subsidies for two years and to allow the government to negotiate prescription drug prices for seniors covered under Medicare. However, on Friday, July 15, Sen. Manchin went on the Hoppy Kercheval radio show and said that he would not necessarily rule out climate or tax measures and would instead prefer to wait for the next inflation report to ensure additional government spending would not further exacerbate inflationary forces. Democrats now appear to face a choice of passing a healthcare focused bill in the near term to avoid spikes in Obamacare premiums before the midterm elections, or to wait until September in the hopes that inflation has declined enough for Sen. Manchin to commit to a climate and tax-oriented package. President Biden has announced his support for the healthcare-focused package, stating “The Senate should move forward, pass it before the August recess, and get it to my desk so I can sign it,” but a bill must still be drafted, vetted by the parliamentarian, and receive approval by both chambers. 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.