Stock Groups

Progressives urge Nancy Pelosi to keep Biden Build Back Better plan intact

Following a meeting at the U.S. Capitol with Nancy Pelosi (D.CA), Rep. Pramila Japal (D.WA), Senator Ilhan Omar, (D.MN), and Rep. Veronica Escobar(D-TX), Congressional Progressive Caucus chair Rep. Pramila Jawapal (D.WA) speaks to reporters.

Chip Somodevilla | Getty Images

Progressive House Democrats are now outraged at President Joe Biden’s extravagant economic plan and have resigned.

On Wednesday, top members of the Congressional Progressive Caucus urged Nancy Pelosi, House Speaker to preserve all the programs included in the package. They instead proposed reducing the program’s duration to cut spending. In order to placate centrists and make the plans last longer, Top Democrats have decided to cut back on their price.

Rep. Pramila Japal, D.Wash., wrote that if given the option of legislating narrowly and broadly, “we strongly encourage you choose to go with the latter” in a letter sent to Pelosi.

They stated that they think that temporary programs can be established to “create a track record that has been successful that will open the door for long-term extensions of benefits.”

CNBC Politics

See more coverage of politics by CNBC:

Democrats and Republicans are currently in negotiations over how to organize their huge investment in climate and social security net programs. Together with the bipartisan infrastructure bill that the Senate has already passed, they hope to have the plan approved before the month ends.

Although Democrats are yet to agree on a final price, they could be at $2 trillion or lower, down from $3.5 billion. The party leaders are trying to gain support from centrist Sens. Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Ariz.), who may sink the proposal as Democrats attempt to pass it with Republican votes.

This plan is currently being proposed. The plan will make child care less expensive, provide more paid leave, lower Medicare eligibility, add hearing and vision coverage, and increase access to dental and vision services. The plan would increase the child tax credit and create universal pre-K. It also provides two years of free community college. This would promote green energy adoption as well as the construction of weather-resistant buildings.

The Democratic House Members have offered many different views about how to reduce costs in the plan. Pelosi stated Monday that most Democrats preferred to eliminate certain programs to preserve others in a letter she sent to her caucus.

“Overwhelmingly,” she said, writing that the only guidance she is receiving from her fellow members was to focus on doing fewer things right.

On Tuesday she offered two options for Democrats to reduce program longevity or combine both. When asked which policies she would cut to lower the price, she replied that the timing of many programs would be improved to reduce the cost.

She replied, “We hope so not,” when she was asked if her party would stop supporting certain programs.

In a letter to Pelosi, the progressive caucus provided another demand. It can derail any bill in the House on its own. Instead of means testing which could make some individuals eligible on the basis of income, or any other criteria, universal programs were desired by lawmakers.

Manchin and others have asked party leaders for guidelines on eligibility, in an effort to cut spending.

Pelosi was contacted by the progressives who wrote: “We have two options. We can strengthen our bond to each other and propose universal social insurance benefits for all Americans or pursue complex means testing methods that will divide us using false narratives about the’makers’ of ‘takers’.

Subscribe to CNBC on YouTube.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.