Manchin halts Build Back Better plan until 2022

Senate Democrats will not pass their Build Back Better Act this year, if at all, after a collapse in negotiations between President Joe Biden and West Virginia Democratic Sen. Joe Manchin stopped the legislation dead in its tracks.

Talks between Biden and Manchin broke down this week over a work provision within the child tax credit measure included in the American Rescue Plan (ARP).  Manchin reportedly supported the work extension, while Biden and Senate Democrats opposed it, the Daily Caller reported.

The Build Back Better Act would have extended the $3,600 credit for young children, and $3,000 credit for children ages 6-17 included through 2022 – but without an extension of the ARP’s child tax credit, the benefit will revert to the $2,000 credit included in the 2017 Tax Cuts and Jobs Act.

Although the Build Back Better Act would only extend the child tax credit through 2022, many Democrats have called for it to be made permanent – a move that would have cost taxpayers close to $1.6 trillion over the next ten years, a recent analysis from the CBO found.

Republicans have noted that the bill could add a total of $3 trillion to the deficit over the same period.

But some of Manchin’s Democratic colleagues have become frustrated with Manchin’s refusal to allow a vote to reach the floor, voicing that he should simply vote on the bill.

“I think it is appropriate for him to finally come to a conclusion as to what he will accept,” said Majority Whip Dick Durbin. “Let’s go home to our families. Let’s get our job done.”

Ultimately, pushing such a costly bill into 2022 creates several technical and financial obstacles for Democrats. For starters, they will now have to continue the debate in a midterm election year – which could result in the passing of a smaller package.

Furthermore, key provisions like the child tax and clean energy credits are set to expire – giving Republicans – and Manchin – greater leverage on the floor.  

Republican Sen. Lindsey Graham told reporters he spoke with Manchin on Friday and expressed concerns over the cost of the package.

“Joe Manchin came to me and he said, ‘I think this bill is full of gimmicks that these programs won’t go away, Lindsey, and if you score them, I think the bill will double,'" Graham told “Fox News Sunday.”