July 22, 2022: FY2022 Budget Reconciliation and Infrastructure Update

Policy Resolution Group Reconciliation & Infrastructure Update

July 22, 2022

FY2022 Budget Reconciliation & Infrastructure 

A health care focused reconciliation deal appears to be progressing, despite pleas from other Democrats to Senator Joe Manchin (D-WV) to reconsider including energy and tax titles. Senator Chris Coons (D-DE) acknowledged that he is "less hopeful today than [he] was a week ago" that he could convince Senator Manchin to support clean energy titles. Meanwhile, Senator John Hickenlooper (D-CO) similarly acknowledged that his attempts to persuade Senator Manchin have not been fruitful and that "the health care bill is going to move." Both President Biden and Majority Leader Chuck Schumer have thrown their support behind passing a bill to extend Obamacare premiums and reduce prescription drug prices under Medicare and hope to pass it before the looming August recess; however, final bill text must still be finalized, agreed upon by the caucus, reviewed by the parliamentarian, and voted on by both chambers. Rumors have circulated that Democrats could attempt to pass a second reconciliation bill with a climate focus later this year, but this move appears unlikely due to political and procedural challenges. For now, modifications to the tax code and incentives for clean energy appear out of the question, leaving these issues to be addressed after the midterm elections. Today will be the last scheduled budget reconciliation and energy tax alert. We will continue to publish unscheduled tax alerts as circumstances require. Readers should also stay tuned for the upcoming regularly published Bracewell/PRG election alert featuring insights from Yasmin Nelson and Liam Donovan. 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.