After months of stalled negotiations, this week Senators Joe Manchin (D-WV) and Chuck Schumer (D-NY) announced an agreement on a budget reconciliation package. Unlike the $1.75 trillion Build Back Better package, which was passed by the House last November, the Manchin-Schumer bill, the Inflation Reduction Act of 2022 (IRA), does not include the broad social spending priorities but is instead focused on limited healthcare provisions, climate and energy policy, and deficit reduction.
The IRA calls for more than $400 billion in spending offset by over $700 billion in new revenue over the course of ten years, for a net reduction to the deficit of more than $300 billion. Among the provisions are the ability for Medicare to negotiate certain drug prices and a cap on out-of-pocket costs at $2,000, extending ACA marketplace health insurance subsidies for an additional three years, reducing carbon emissions, and instituting a corporate minimum tax rate of 15%.
Also this week, Senate Democrats released their Fiscal Year (FY) 2023 appropriations, including a $21 billion request for additional COVID-19 spending and for other public health threats as part of the Labor-HHS and State Department funding bills. The funding is targeted at replenishing funds for vaccines, therapeutics, and tests, but would not replenish the depleted Provider Relief Fund. Of the supplemental funding, $16 billion would be directed at the Public Health and Social Services Emergency Fund (PHSSEF), $6.25 billion would go to HHS, and an additional $5 billion would be appropriated in emergency funding for global response.
Argentum is closely following both the renewed efforts at a reconciliation package and for additional COVID-19 spending for any opportunity to include our priorities. Lawmakers have limited windows for both packages, as appropriations (or a continuing resolution) must be passed before the end of the current FY ends on September 30, and the budget reconciliation vehicle is also tied to the end of the FY. Complicating this timeline is the extended August recess, where lawmakers will be out for up to six weeks to meet with constituents back in district. As such, it may be possible for either or both chamber to return from recess early to work on these major legislative efforts.
Argentum encourages all advocates to meet with lawmakers during the recess to help relay our priorities. Many times, the most impactful conversations come directly from constituents relaying what is happening in their communities—and we need your help to ensure Congress receives the message. Please reach out to Argentum's public policy team if you have any questions about scheduling a meeting with your lawmakers during the recess.
