Democrats’ Efforts on BBB Reconciliation Package Continue to Stall

From Partnership for Medicaid Home-Based Care

Sen. Joe Manchin (D-WV) has further narrowed the universe of policies he wants to include in a modified Build Back Better Act (H.R. 5376) to focus on tax changes (namely, increasing the corporate rate to 25 percent and establishing the capital gains tax rate at 28 percent); deficit reduction; and policies to reduce prescription drug prices.  He has indicated that any other changes must go through regular order, effectively giving policies like HCBS investments little chance (at the moment) to advance in reconciliation.  Some policymakers are concerned that Sen. Kyrsten Sinema (D-AZ) is not aligned with Sen. Manchin’s desired tax changes, which could jeopardize even a small reconciliation bill.  Further, with Sen. Manchin attempting to negotiate a bipartisan climate package with Sen. Lisa Murkowski (R-AK) and other policymakers turning their attention to the conference committee for the Bipartisan Innovation Act, active discussions on reconciliation are unlikely in the coming weeks.