Comment Sen. Joe Manchin III (DW.Va.) told Democratic leaders Thursday that he will not support an economic package that includes new climate change spending or new tax increases targeting wealthy Americans or corporations, marking a huge setback for lawmakers of the party they hoped to advance a central element of their agenda ahead of this fall’s midterm elections. The major shift in the negotiations — confirmed by two people familiar with the matter who spoke on condition of anonymity to describe the talks — threatens to upend the delicate process to pass the party’s signature legislation seven months after Manchin broke up the original construction of the roughly $2 trillion Back Better Act that President Biden had championed. But Manchin told Democratic leaders he was open to changing federal laws that could lower prescription drug costs for seniors, the two people said. And the West Virginia moderate expressed support with Senate Majority Leader Charles E. Schumer (DN.Y.), the party’s chief negotiator, for expanded subsidies that would help lower health insurance costs for millions of Americans for over the next two years, one of the sources said. A spokesman for Schumer declined to comment. A spokeswoman for Manchin said nothing had been agreed upon at any point in the talks, but declined to discuss details of the talks. The stunning setback late Thursday came despite weeks of seemingly promising negotiations between Schumer and Manchin to pursue a broader deal that would deliver on the very promises they secured for Democrats in both houses of Congress and the White House in 2020. On climate, Democrats once hoped to fundamentally transform the country, cut pollution, incentivize cleaner, greener energy and put more electric vehicles on the road. Manchin, who represents West Virginia, has often opposed their bolder plans — but until Thursday, he seemed open to some limited changes to combat global warming. On taxes, meanwhile, Manchin had signed into law just days ago one of several Democratic-backed plans to raise more revenue from wealthier taxpayers, including a policy that would help extend Medicare’s solvency by closing a loophole that allows high income earners to shelter income, said one of the people familiar with the matter. However, the senator eventually appeared to be changing course and recently expressed resistance to some of the party’s other plans targeting wealthy individuals and corporations, the source added. The situation leaves Democrats in a difficult political bind — left to decide between pushing Manchin after Thursday’s reversal or accepting what would still be major changes to the law that lower health care costs for millions. Manchin has long expressed concern that his party’s proposals could increase the deficit and worsen inflation, a position he reiterated on Wednesday after new data confirmed that prices are rising at the fastest clip in four decades. This is a developing story and will be updated.
