Democrats Agree on $670 Billion Package of Social and Climate Measures

The ongoing bickering among Democrats in the Senate over investment in health and energy is stirring. Majority leader Chuck Schumer and party colleague Joe Manchin announced an agreement on a $670 billion package on Wednesday.

 

“The investments will be fully funded by closing tax loopholes for high net worth individuals and companies,” they said in a joint statement.

The package is only a fraction of what US President Joe Biden originally wanted to push for climate and social affairs. However, Manchin had torpedoed Biden’s plans, firing off a social and climate package worth billions. Biden has now said he supports the agreement. If passed, the law would be of “historical importance.”

Under the agreement, approximately $370 billion in energy security and climate change programs. The rest goes to debt reduction. “Contrary to popular belief, America cannot get out of debt or out of inflation by spending money,” Manchin wrote in a statement. “The US must not undermine its superpower status by phasing out reliable and affordable fossil fuel energy before new technologies are ready to carry the burden reliably.”

Senator Manchin is from the state of West Virginia, one of the largest coal producers in the country. He is affiliated with the coal industry and earns additional income through dividends from a coal company. Referring to Biden’s original plans, he said, “Build Back Better is dead.” That was the name of Biden’s large investment package.

He had tried to convince Manchin of the package in several rounds of personal negotiations. He also clearly reduced the size for this. But Manchin remained skeptical. Because of their wafer-thin Senate majority, Democrats depend on every vote in their ranks.

Manchin’s behavior exacerbated an internal power struggle and a crisis of confidence within the Democratic Party. Biden also put the tug-of-war in a bad light – after all, he had failed to keep his own party together. Manchin now explained that they agreed on “reasonable solutions.”