“The expanded child tax credit, a policy passed in March 2021 that beefed up monthly payments to most families with kids, has already had a massive, positive effect on the lives of America’s children. After just one monthly payment, it cut child poverty by 25 percent — and should the larger payments continue, it could slash child poverty by more than 40 percent in a typical year, according to the Urban Institute.
This is a huge decline in a very short time frame. According to the Brookings Institution, child poverty rates dropped by 26 percent between 2009 and 2019, meaning the tax credit accomplished in one month what other policies took a decade to achieve.
Despite that success, the expanded child tax credit (CTC) is in serious danger. As part of their budget negotiations, Democrats are debating how long to extend the program — most likely for a year, with some calling for a four-year (or even indefinite) extension. In the best-case scenario with a short extension, the program will probably run out of money by the end of 2022. In the worst-case scenario, it could end as soon as April 2022, when families are currently due to receive their final enhanced payment.”
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“Opponents of the policy, however, argue that these payments could deter recipients from working since parents without an income can receive the help as well. Manchin has expressed this concern, arguing that work and/or education requirements ought to be added to the policy should it be extended. “Don’t you think, if we’re going to help the children, that the people should make some effort?” Manchin has said.
Some researchers have pushed back against this view, noting that a continual credit might help parents join the workforce by enabling them to afford basic services like child care. Given that the expanded child tax credit has only been distributed since July, it’s too early to ascertain which argument is correct, though data from a Columbia University study found that the credit hadn’t had a “significant effect on employment or labor force participation” so far.
There is also debate as to whether access to the credit should be capped even more. Right now, families that make up to $150,000 a year receive the full boost, a figure that Manchin would like to see go down. Manchin has argued that the policy should be capped at households that make $60,000 or less.
Proponents of a more universal policy, meanwhile, argue that broadening the constituency that benefits from the credit will increase its political support. More universal programs including Social Security and Medicare are some of the most popular government offerings and have polled better than Medicaid, which is means-tested.”
“there is one surprising area that’s so far survived the congressional gauntlet as part of a big climate spending proposal: forest management and conservation. The bill — which Democrats are trying to pass with a simple Senate majority using the reconciliation process — allocates roughly $27 billion for spending related to federal, state, and tribal forests.
While that’s just a sliver of the roughly $1.75 trillion spending package, it’s an enormous and historic number, said Collin O’Mara, CEO of the National Wildlife Federation. “It’s the most significant investment ever in our national forests,” O’Mara told Vox. “It’s an astonishingly big deal.”
A large chunk of those funds would go toward preventing wildfires — which release huge amounts of carbon dioxide into the atmosphere and have devastated Western towns — and toward more equitable access to green spaces. The bill would also set aside billions of dollars for ecosystem restoration and more environmentally friendly farming practices.
Biden’s framework reveals that conserving forests and biodiversity is a core component of the nation’s plan to tackle climate change, as many scientists say it should be: Trees and soil are a natural sink for carbon dioxide, making forests a key solution for cutting climate pollution. Yet for decades, biodiversity conservation and climate change have largely been considered separate issues. The bill also shows that the US government has recognized the growing threat of climate-fueled wildfires and is willing to fund the Forest Service to do something about it.”
“Originally, progressives had identified five broad areas where they wanted investments: the care economy, affordable housing, climate jobs, a pathway to citizenship for DACA recipients, and reductions to prescription drug prices. The original $3.5 trillion version of the spending bill included many of these issues, but because of Manchin’s and Sinema’s concerns, multiple areas were significantly cut back or dropped entirely.
Biden’s new $1.75 trillion framework ultimately invests heavily in early childhood education and climate but does not include a major provision to help reduce prescription drug prices, a pathway to citizenship for DACA recipients, or paid family leave.
And areas that survived cuts still saw dramatic reductions in spending. For example, Democrats’ original budget measure contained $450 billion for long-term home care and $332 billion for affordable housing. Biden’s framework, meanwhile, includes $150 billion for the former and $150 billion for the latter.
Sinema has opposed Democrats’ more expansive proposals to reduce prescription drug prices — but agreed to a narrower option that includes a smaller pool of drugs. A pathway to citizenship for DACA recipients also isn’t expected to make it into the legislation because of the rules governing the budget reconciliation process and the Senate parliamentarian’s existing ruling advising against its inclusion. And paid family leave has run into opposition from Manchin, who’s worried that the policy would be too burdensome for businesses.
Biden’s framework still has about $100 billion allocated for immigration reform, though it’s unclear whether it will make it past this procedural hurdle. Democrats’ latest pitch to the parliamentarian will focus on issues like the legal visa backlog and a shield from deportation for some unauthorized immigrants, the New York Times reports. Lawmakers are also still finagling some of the details for the bill, leaving the door open for the possible return of some policies.
Progressives back the framework even with the existing omissions. In its current state, it includes several of their demands on child care subsidies, funding for clean energy tax credits, and a Civilian Climate Corps. Additionally, they argue that the talks on the bill wouldn’t have even happened without the pressure they’ve put on Democratic leadership and moderate lawmakers.”
“A key climate policy designed to phase out fossil fuels will likely be cut from Democrats’ upcoming reconciliation package due to opposition from Sen. Joe Manchin (D-WV), who has reportedly refused to back the measure as negotiations over the budget bill continue.
According to the New York Times’s Coral Davenport, who first reported the news on Friday, Manchin, who chairs the Senate Energy and Natural Resources Committee, will not support the sweeping clean electricity program widely seen as the centerpiece of the bill’s climate plan.
The $150 billion program — officially known as the Clean Electricity Performance Program, or CEPP — would reward energy suppliers who switch from fossil fuels like coal and natural gas to clean power sources like solar, wind, and nuclear power, which already make up about 40 percent of the industry, and fine those who do not.
Experts believe the program is the most effective way to slash US carbon emissions significantly enough to prevent the global temperature from rising by 1.5 degrees Celsius, a threshold which would have drastic consequences for the planet if exceeded.”
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“Manchin’s home state of West Virginia is one of the largest producers of coal in the US, and Manchin himself benefits financially from the coal industry.
Manchin’s spokesperson, Sam Runyon, told the New York Times that Manchin opposed the CEPP because he couldn’t support “using taxpayer dollars to pay private companies to do things they’re already doing.””
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“Manchin is correct in saying that some companies are indeed changing over to sustainable electricity production; currently, almost 40 percent of electricity generated in the US comes from a clean energy source, either nuclear or renewable. But corporations are ultimately concerned about their bottom line, and the carrot-and-stick approach of the proposed clean electricity program incorporates that reality by incentivizing companies to make the drastic changes necessary to address climate change — and penalizing them if they don’t.
The other reason a clean electricity program could prove key to addressing climate change is that it creates a national standard, as opposed to the patchwork of municipal and state legislation and individual efforts currently in place. Among other impacts, the program would help bring lagging areas up to speed with the ambitious targets set by the Biden administration, which call for 80 percent of the nation’s electricity to come from renewable sources by 2030, and 100 percent by 2035.”
“the roots of the Democratic divide go back to last November, to the arguments over what happened, and to the way to respond to those results. In those first days after Election Day, Democrats discovered that their hopes for widespread gains were
“Apple’s aggressive lobbying efforts in Georgia, the extent of which were previously unreported, highlight a pattern that has played out with little national attention across the country this year: State lawmakers introduce bills that would force Apple and its fellow tech giant Google to give up some control over their mobile phone app stores. Then Apple, in particular, exerts intense pressure on lawmakers with promises of economic investment or threats to pull its money, and the legislation stalls.”
“Republicans raised the debt ceiling with minimal drama under Donald Trump. Now Democrats are prepared to make them publicly refuse to do the same for Joe Biden.
Senate Republicans are digging in deeper and deeper in their resistance to raising the nation’s borrowing limit, with 46 of them vowing to oppose an increase this fall that will need at least 10 Republican votes. Yet Democrats still plan to burn their most expedient ticket out of the debt mess, with no intention to shift course and pass an increase along party lines.
Their move to pass a budget resolution without tackling the debt ceiling, completed last week, adds a perilous deadline to Democrats’ season full of lofty promises on infrastructure and social spending. It’s not only the majority party facing a fall challenge, however: Republicans will have to actually block a debt ceiling increase instead of just talking about it.
The borrowing fight is perhaps the most immediately consequential drama during a momentous fall for Biden and the Democratic agenda. In addition to raising the debt ceiling, Democrats must fund the government past Sept. 30, devise a likely multitrillion-dollar spending bill and put Biden’s infrastructure bill over the top in the House. Democrats will also make one last-gasp effort at passing voting rights legislation.”
“The Congressional Budget Office (CBO), the legislature’s nonpartisan number-crunching agency, says the bipartisan infrastructure bill would add about $256 billion to the deficit over 10 years. The real figure is likely to be higher, because the package contains a few gimmicky elements that are designed to trick the CBO’s forecasting metrics.
The biggest of those gimmicks is the promise that Congress will reallocate more than $200 billion of COVID relief funds to cover infrastructure costs. It remains unclear exactly what unused COVID funds will be redirected, and the bill only rescinds $50 billion in actual budget authority from previously passed COVID relief bills, according to an analysis by the Committee for a Responsible Federal Budget (CRFB).
Other proposals to save and redirect federal dollars to pay for the infrastructure bill are also unlikely to materialize. Take the $49 billion lawmakers plan to “save” by further delaying an already-delayed Trump administration regulation altering how prescription drug discounts are applied by health insurers. “Because the Congressional Budget Office projected that the so-called rebate rule would increase federal spending in Medicare and Medicaid by about $177 billion over a decade, due to a rise in Medicare premiums (and therefore, taxpayer-funded subsidies for Medicare premiums), lawmakers get to count a further delay in the rule (beyond the Biden administration’s one-year delay) as ‘savings’ for the federal government,” explains the National Taxpayers Union.”
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“When you filter out the gimmicks designed to game the CBO score of the infrastructure bill, the CRFB says the package will probably add $340 billion to the deficit over 10 years.”
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“But as the CBO’s report makes clear, actually paying for the infrastructure makes those benefits bigger than they otherwise would be. A fully offset infrastructure package would boost GDP by an estimated 0.11 percent over the next 30 years while a deficit-financed package would barely break even. That’s because, as the CRFB notes, running higher deficits to pay for infrastructure spending will reduce private investment over the long term and, thus, lower future economic growth as well.”
“Biden’s statements on the legislation were crucial to advancing it. When the president met with lawmakers in June, he pledged that he wouldn’t push to include any physical infrastructure funding in Democrats’ reconciliation bill that wasn’t included in the bipartisan one.
As Politico’s Burgess Everett and Marianne LeVine reported, that position helped assuage some of the Republican senators’ concerns that Democrats would agree to whatever cuts were needed to gain GOP support before later passing everything that was cut using the reconciliation process, which requires only a Senate majority. Taking Biden at his word that what was cut from the bill was gone forever allowed many Republicans to give the bipartisan bill their support, according to Sen. Mitt Romney (R-UT).”