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Schumer to begin bidget reconciliation process on Wednesday

Senate Majority Leader Chuck Schumer (D-N.Y.) plans to formally trigger the budget reconciliation process on Wednesday, setting Democrats up to ram the White House's American Jobs and Family Plans through the Senate via a simple majority vote in July.

Why it matters: Announcing this strategy now could be dangerous to the group of 20 bipartisan lawmakers trying to hash out a deal on the "hard" infrastructure portion of President Biden's package.


  • Some of the Republicans in the group may be less keen on continuing negotiations knowing they plan to force the more progressive parts of Biden's plan through a partisan process regardless of a deal.
  • It will also be harder to convince GOP senators on the outside to get on board with a potential compromise.

Driving the news: Schumer will convene a meeting Wednesday with all 11 Democratic members of the Senate Budget Committee and will urge them to have the budget resolution — what he's labeling a “Unity Budget” — ready to be presented to the conference in early July.

  • He hopes to pass it by the end of the month.
  • Schumer said he also plans to bring a scaled-down infrastructure package to the Senate floor in July under regular order.

Details: The resolution is expected to include clean energy tax incentives, clean vehicle rebates and money for farmers and manufacturers to put toward energy-saving measures, among other provisions, a senior Democratic aide said.

  • Biden's Family Plan — which includes increased childcare, expanded health care, free community college, and universal Pre-K — will also be in it.
  • "Schumer will say that the Families plan proposal from the President is essential to the Resolution, will not be supported by Republicans, and must be robustly funded in Reconciliation,"

Our thought bubble: The aide's comments, which specifically mention the climate provisions, come after multiple Senate Democrats have recently insisted they will not support an infrastructure package that lacks aggressive measures to cut carbon emissions.

Go deeper: Biden's Plan B could be a bust

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Manchin opposes corporate tax hike in Biden's infrastructure bill

Sen. Joe Manchin (D-W.Va.) forewarned in a radio interview Monday that he will not support a hike in the corporate tax rate from 21% to 28% as proposed in President Biden's infrastructure bill, adding that there are "six or seven other Democrats that feel very strongly about this.”

Why it matters: The tax hike is Biden's pitch on how to pay for the $2 trillion price tag on his American Jobs Plan. But pushback from moderate Manchin could scupper the bill, as a 50-50 split in the upper chamber has made each Democratic vote a must-have.

  • Manchin said he thinks the corporate tax rate should have "never been below [25%]" and that he would be comfortable with that number.

Between the lines: Senate Minority Leader Mitch McConnell said last week that he will fight against Biden's plan, signaling that there will be no Republican support for the measure.

  • And with the filibuster still in place, Democrats will also likely still need to pass the measure through a budget reconciliation process in order to avoid the need for 10 Republican votes, even if the entire Democratic caucus supports it.

What he's saying: "As the bill exists today, it needs to be changed ... Bottom line is that's what legislation is all about. This bill will not be in the same form you've seen it introduced..." Manchin said, adding that Biden's proposal might be broken up into three separate bills.

Axios-Ipsos poll: Republicans oppose removing Trump over Capitol siege

Data: Ipsos/Axios Survey; Chart: Axios Visuals
Data: Ipsos/Axios Survey; Chart: Axios Visuals

Eight in 10 Republicans oppose removing President Trump from office for inciting his supporters to storm Congress in an effort to overturn his election loss, according to a new Ipsos poll for Axios.

Why it matters: The stark finding underscores the degree to which the Republican Party has become the party of Trump.

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