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Dem divisions linger in last lap of spending talks - POLITICO

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Congressional Democrats are down to a handful of key disputes in their frenetic effort to draft President Joe Biden’s roughly $2 trillion social spending package by the end of the week.

But the remaining hurdles will likely be the trickiest to clear, and it remains an enormous question mark whether Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer can nail down a deal in the next 48 hours.

As Democratic leaders publicly aim for a broad agreement on the bill's contents before next week, Sen. Joe Manchin (D-W.Va.) appeared more skeptical of such a quick turnaround.

When asked whether the negotiations would go past Friday, the West Virginia Democrat told reporters: "I believe so.”

“We’re making good progress,” Manchin said. “There’s a lot of details, until you see the text and the fine print, it’s pretty hard to make a final decision … we can have the intent, you just have to make sure the text matches the intent of what people want to agree on or what they do agree on and what they don’t agree on.”

And Manchin isn't alone in thinking the self-imposed deadline to reach a deal will slip again. Sen. Bernie Sanders (I-Vt.) also conceded Thursday that a framework before the end of the week was ambitious.

Privately, Democrats in both chambers are racing to resolve the slew of internal divisions holding up an agreement, holding calls and meetings with members, White House aides and Cabinet officials as they work to narrow the scope of the bill without tanking support.

Both Manchin and Sinema met with White House staff Thursday afternoon. In a sign of a potential breakthrough, Sinema is signaling she's approved certain funding mechanisms that don't cross her red line of raising corporate tax and income rates, according to a source familiar with the talks.

"Senator Sinema has agreed to provisions in each of President Biden's four proposed revenue categories — international, domestic corporate, high net worth individuals, and tax enforcement — providing sufficient revenue to fully pay for a budget reconciliation package in the range currently being discussed," the source said.

Some of the largest remaining obstacles include paid leave, Medicare expansion, prescription drug pricing and climate, according to Democrats familiar with the discussions — all issues that risk alienating key factions of the party.

“We’re still trying to get a framework in the next 48 hours,” House Majority Leader Steny Hoyer said Thursday.

Democrats have successfully narrowed some coverage areas in the bill, Pelosi told reporters Thursday, while acknowledging Sinema’s opposition to raising rates. She underscored that the bill would be “fully paid for.”

Pelosi added that Democrats were still aiming to find a path forward by week’s end — something she had privately told her members earlier Thursday — and reiterated that party leaders have “always been on track.”

“We're working very hard and the president's working very hard and members, I think, are focused on getting this done," Pelosi said. "Obviously, there are challenges.”

Another major hang-up is Biden’s signature clean energy program, the Clean Energy Performance Plan, which Manchin has opposed. The opposition from the West Virginia Democrat has sent lawmakers scrambling for an alternative on a policy critical to the party’s base.

“I would like to see us try to get a little bit more on the climate front but if Sen. Manchin can’t be moved, let’s get what we can,” said Rep. Ami Bera (D-Calif.), one of the group of House Democrats who met with Biden on Tuesday.

The White House suggested it could take unilateral action on climate change even if their clean energy plan were excluded from the bill.

“We have had other ways of doing (reducing emissions) … what we’re saying is we don’t need Congress. We can do it without Congress,” said White House principal deputy press secretary Karine Jean-Pierre on Thursday afternoon.

Reaching an agreement on prescription drug pricing also remains an uphill battle, with moderates and progressives divided over addressing the matter.

“Sen. Sinema, every Republican, and every person in the House: Do what the American people want, and they want us now to lower the outrageous cost of prescription drugs,” Sen. Bernie Sanders (I-Vt.) implored Thursday. “I would hope that Sen. Sinema does what the people of Arizona want and what the people of America want.”

Democrats went into the weekend projecting optimism, even as they acknowledged that an imminent agreement on a framework was unlikely.

Democratic leaders are hoping that by setting deadlines, members will feel pressure to come to a deal by the end of the month, when surface transportation funding expires and they hope to pass a bipartisan, Senate-passed infrastructure bill.

An agreement would theoretically allow the infrastructure plan to move forward and pass the House, just ahead of the Virginia gubernatorial election. Some Senate Democrats are warning that if the bipartisan package doesn’t pass by then, they could see political consequences in a race that’s tighter than many expected.

“Planes are starting to land, I don’t know that they’ve landed, they’re starting to land,” said Sen. Chris Murphy (D-Conn.). “I don’t have intel on whether we have a framework agreement today, tomorrow or next week, but this was a very good week in which you know we started to see some earnestness and negotiation.”

Heather Caygle and Burgess Everett contributed to this report.

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Dem divisions linger in last lap of spending talks - POLITICO
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