Will the $3.5 Trillion Budget Plan be Paused?
Today, Senator Joe Manchin, the key vote for the budget to be approved, said Congress needs to rethink its approach. Last week the House passed the $3.5 trillion budget plan. The Senate needs a yes vote from all 50 Democratic Senators, including Manchin, to pass the budget through the reconciliation process. We explain the details and how this could affect you.
Manchin Calls for a 'Strategic Pause' to the $3.5 Trillion Budget
In an op-ed today, Manchin accused some members of Congress of having "a strange belief there is an infinite supply of money" to deal with the current matters America faces and states that he will not support a bill anywhere near $3.5 trillion. He also criticized members of Congress for believing that spending trillions of dollars will not have any negative consequences in the future.
Manchin suggests that Congress needs to take a "strategic pause" on the budget plan to better understand the trajectory of the pandemic and to determine "whether inflation is transitory or not." He continued by explaining, "I have always said if I can’t explain it, I can’t vote for it, and I can’t explain why my Democratic colleagues are rushing to spend $3.5 trillion."
Manchin Provides 3 Main Reasons for a 'Strategic Pause' on the $3.5 trillion Budget
Manchin's first reason to pause the budget decision is due to inflation. He said inflation is on the rise and is bleeding Americans' income, so spending another $3.5 trillion (which would be the largest spending bill in history) would be irresponsible. He also cited the 10.1 million job openings and the massive economic recovery as proof that spending of this magnitude is not needed.
Secondly, He pointed out that Congress has spent over $5 trillion dollars in the past 18 months, bringing the total debt of the United States to $28.7 trillion. He asked several questions regarding what the U.S. would do if the pandemic gets worse, a major recession occurs, or we get pulled into a war, after spending $3.5 trillion.
"I believe that spending trillions more dollars not only ignores present economic reality, but makes it certain that America will be fiscally weakened when it faces a future recession or national emergency." - Joe Machin
Thirdly, Manchin says that Congress needs to think through the implications this bill will have on future generations. Medicare benefits will likely need to be reduced by 2026 and Social Security payments will need to be reduced by 2033. Spending $3.5 trillion on items that mainly do not address these challenges does not make sense to Senator Manchin.
What Will Happen to the $3.5 Trillion Budget Plan?
The major question remains, what will happen to the budget? Will it be revised and passed, or is it dead in the water? Manchin stated, "I, for one, won’t support a $3.5 trillion bill, or anywhere near that level of additional spending." If he sticks with this assertion, the budget will require significant cuts, which at the very least, would delay its passage.
How Will The 'Strategic Pause' Affect You?
If Manchin sticks with his claim, that he will not support another bill "anywhere near" $3.5 trillion, the budget could be drastically altered. The current budget blueprint proposes billions of dollars be spent in numerous different capacities.
The current budget includes funding for universal Pre-K for 3 and 4 year-olds, child care for working families, down payment assistance, rental assistance, expanding Medicare, and much more. If Congress makes drastic cuts to the proposed budget, many of these ideas may be cut entirely or see reduced funding.
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