According to Goldman Sachs, the failure of President Joe Biden’s “Build Back Better” plan could mean that next year’s economic growth may be slower than anticipated.

Plan hit a significant road blockThe Senate did not approve the bill after West Virginia senator Joe Manchin declared he would not vote for it Sunday.

Goldman Sachs Chief Economist Jan Hatzius said in a note to clients on Sunday that the failure of the bill — which includes significant spending on climate infrastructure and social programs — would slow economic growth in 2022.

“BBB’s enactment was already looking like a tight call. In light of Manchin’s comments, we are revising our forecast to eliminate the possibility that BBB would become law. Although BBB looks unlikely in the current form, Congress may enact smaller fiscal proposals to address manufacturing incentives or supply chain issues.

Goldman has slightly reduced its forecast of real GDP growth for the first three quarters 2022. Now, the firm projects that the company will see a 2% increase in the first quarter and then a 3% growth rate in the second period. Then it expects a 2.75% rise in the next two periods. Goldman expected growth rates of 3% to 3.5% and then 3%.

The firm noted that headline CPI could rise to 7% within the next few months, as per our forecast, before falling, which would make passage even more challenging.”

This report was contributed by Michael Bloom, CNBC.