Jarrett Renshaw, Andrea Shalal

WASHINGTON (Reuters] – A White House alternative to its $1.75 Trillion spending bill is being prepared. The plan will maintain climate change policies but cut or pare down items like child tax credit, paid family leave and the child tax credit. In an attempt to win over Americans, According to two sources, Senator Joe Manchin (and other Democrats) will present the plan as soon as possible.

President Joe Biden’s administration is expected to pivot from a long-shot attempt to pass voting rights legislation through the Senate https://www.reuters.com/world/us/us-voting-rights-bill-passes-house-senate-prospects-remain-unclear-2022-01-13 on Tuesday, then renew talks in earnest with lawmakers on a slimmed-down version of the Build Back Better https://www.reuters.com/business/cop/whats-bidens-175-trillion-build-back-better-package-2021-11-05 bill, the sources said.

The White House Climate Czar Gina McCarthy, and U.S. Treasury officials, will travel to Capitol Hill in order to speak with legislators and staff about the bill. This is part of an effort to protect some aspects of Biden’s economic and environmentally-oriented agenda.

Manchin, a moderate Democrat, abruptly halted talks https://www.reuters.com/world/us/senator-manchin-says-he-is-no-bidens-domestic-investment-bill-fox-interview-2021-12-19 on the spending package before Christmas, citing his concerns over inflation, deficit spending and what he called an attempt to “reshape our society.”

Biden, Manchin, and Senator Kyrsten Siene of Arizona met at the White House on Thursday to discuss voting rights. Since the surprise West Virginia senator’s announcement last month, President Obama hadn’t talked to Manchin.    According to one of the people involved with the plan, “There must be a reset.” It’s clear that there isn’t much mystery about Manchin’s acceptance. It is important to establish as many parameters as possible as to Manchin’s acceptance, then Biden should ask for his vote.

The spending bill is opposed by all of the 50 Republicans who make up the 100-member Senate. Therefore, the White House must win Manchin over and other Democratic standoffs. If the bill passes, Kamala Harris (Democratic Vice President) could vote to end the tie.  

CREDITS CHILD TAX

According to these sources, the revamped measure will likely cost over $1 trillion. It could also eliminate billions in funding for social safety programs like home health care, universal prekindergarten, paid family leaves, and universal pre-kindergarten.

Uncertain which programs will be cut or eliminated completely. Democrats and White House have been discussing the possibility of imposing higher income limits on social safety net and child tax credits.

Manchin wants to cap child tax credit recipients. However, this could be used to target lower-income earners and extend the funding over a decade. Columbia University research shows that the monthly payments lifted 3.6 million children from poverty by October 2021.

Sources said that Manchin had indicated this month that $555 billion was available for climate spending. This includes production tax credits for the solar and wind industry. These credits are vital in order to achieve the United States’ 2030 emission reduction targets.

Manchin’s approval for this funding is considered the “fulcrum”, which will allow the bill to be moved forward. Progressive-friendly social spending can also be added, such as expansion of the Affordable Care Act 2010.