07/22/2022

Senate Democrats Resigned to Slim Reconciliation Bill

The latest version includes no funding for climate change programs

Senate Majority Leader Chuck Schumer (D-NY) confirmed this week that Democrats will move forward with a reconciliation bill that extends Affordable Care Act (ACA) subsidies for two years and allows Medicare to negotiate prescription drug prices.

The very narrowly focused reconciliation package will not include new spending to combat climate change or tax increases due to opposition from Sen. Joe Manchin (D-WV). Manchin is on board with extending ACA subsides and lowering drug prices.

“Democrats are moving ahead with the provision to lower prescription drug prices,” Schumer said yesterday. “We are proud of this. And that’s what we are doing on reconciliation in addition to the ACA provisions.”

The Senate is scheduled for August recess in two weeks so time is of the essence for reconciliation.  Senate Republicans and Democrats met with the Senate parliamentarian yesterday to present their case on whether those two provisions comply with budget reconciliation rules. The Senate parliamentarian has not yet completed its procedural review. Budget reconciliation rules dictate that provisions must change federal spending or send new revenue into federal coffers to qualify.

Senate Republicans are mounting a challenge to Democrats’ efforts to move the two provisions through reconciliation.

“Republicans believe this whole enterprise is going to be very inflationary,” Sen. Lindsey Graham (R-SC) told POLITICO. “And we will be very aggressive in trying to stop it.”

This article was provided to OSAP by ASAE's Power of Associations and Inroads.