Progress had slowed, including on the climate portion and a plan to increase taxes on the wealthy and corporations, before a self-imposed deadline set Schumer to vote on the measure before the August recess.
Manchin’s refusal was reported earlier by the Washington Post. The move comes seven months after Manchin killed Biden’s plans for a grand economic bill totaling some $2 trillion and including many progressive priorities.
The death of the climate package, which at one point contained some a historic $555 billion on clean power, electric vehicles and resilience to global warming, would represent a major setback in the Biden administration’s efforts to confront global warming emissions. The president pledged last year that the US would cut its greenhouse gas emissions 50% to 52% from 2005 levels by the end of the decade.
As much as $320 billion in new and expanded tax credits for wind and solar power, nuclear plants, biofuels, advanced energy manufacturing and electric vehicles, would have cut global warming causing emissions by nearly 40% by 2030, according to Democratic estimates. Recently, Schumer had offered to Manchin a $375 billion package of energy and climate provisions as well as support for permitting changes sought by Manchin but Manchin said no.
‘Appalled, Outraged and Disappointed’
Environmental groups urged Manchin to reconsider.
“There truly aren’t words for how appalled, outraged, and disappointed we are,” said Tiernan Sittenfeld, a senior vice president with the League of Conservation Voters. “Senator Manchin had every opportunity to stand up for climate, jobs and justice, and save families money when they need it most, but instead he is choosing to stand with polluters.”
The White House declined to comment. Representatives of Schumer didn’t immediately respond to requests for comment.
In addition to throwing much of the Biden administration’s climate and economic legislative agenda into disarray, US cooperation with an international agreement to levy a global minimum tax on companies appears to be in limbo.
Democrats planned to use the major tax and spending package to bring the US into alignment on one of the two major parts of that agreement, negotiated by the Treasury Department and representatives from over 130 countries. The global talks remain ongoing, but a de facto US withdrawal could throw sand in the gears of what appeared to be a unique international consensus.
Democrats had also promised to increase IRS funding, by $80 billion over 10 years, as a way to help bring in more revenue to balance with costs for their plan. Manchin has voiced support for that in the past, though it’s unclear what the status of that will be now that the broader package appears to have come apart.
--With assistance from Jordan Fabian and Laura Litvan.
This article was provided by Bloomberg News.