Manchin won’t support climate or tax provisions in Democrats’ economic bill

Schumer, a New York Democrat, made a number of concessions to pare back the climate provisions but Manchin would not budge.

Manchin told Schumer he will not support a bill this month with any provisions on energy or climate, or consider raising taxes on the wealthy or corporations.

The Washington Post first reported Manchin’s comments to Democratic leadership.

The change in tone of the negotiations was abrupt. Manchin had supported those provisions throughout the negotiations with the majority leader, both at the staff and member level, one of the sources familiar said.

“Political headlines are of no value to the millions of Americans struggling to afford groceries and gas as inflation soars to 9.1%,” Manchin spokeswoman Sam Runyon said in a statement. “Senator Manchin believes it’s time for leaders to put political agendas aside, reevaluate and adjust to the economic realities the country faces to avoid taking steps that add fuel to the inflation fire.”

Data released Wednesday showed that inflation surged to a new pandemic-era peak in June, with US consumer prices jumping by 9.1% year-over-year — the highest level in more than 40 years.

Manchin is open to lower prescription drugs prices and a two-year extension of subsidies for the Affordable Care Act, according to the source familiar, which suggests that’s all Democrats are likely to get in the package they’re hoping to pass in a process that requires only Democratic votes.

Democrats are now pushing to get the ACA subsidies extended before the August recess to avoid rate increases.

This story has been updated with additional information.