On The Money: Democrats reach deal on $3.5T target | Biden rallies Democrats: 'We're going to get this done'

On The Money: Democrats reach deal on $3.5T target | Biden rallies Democrats: 'We're going to get this done'
© Greg Nash

Happy Wednesday and welcome back to On The Money, where we’re probably going to be avoiding flights for a while. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL—Biden rallies Democrats: 'We're going to get this done'

President BidenJoe BidenHouse clears bill to provide veterans with cost-of-living adjustment On The Money — Dems dare GOP to vote for shutdown, default To reduce poverty, stop burdening the poor: What Joe Manchin gets wrong about the child tax credit MORE received a warm welcome from Senate Democrats on Capitol Hill, where he met with lawmakers Wednesday to rally them to support his infrastructure agenda.

“We’re going to get this done,” Biden told reporters as he walked into the Senate, where he served for 36 years before becoming vice president in 2009. The Hill’s Alexander Bolton takes us to the halls of the Senate here.

What we know so far about the $3.5 trillion budget deal: Senate Democrats still need to hammer out some of the details, and legislative text has yet to be released. They also need to get all 50 members of their caucus on board with the proposal for it to pass without GOP support. That said, we’ve got a general idea of what the bill will include:

  • The budget proposal would give Democrats the ability to pursue many of the social spending programs that Biden outlined earlier this year in his $1.8 trillion American Families Plan, such as universal pre-K, paid family and medical leave and nutrition assistance, according to a senior Democratic aide.
  • The measure also would allow Democrats to seek extensions of tax-credit expansions established by the $1.9 trillion coronavirus relief law that Biden enacted in March.
  • The budget framework would allow Democrats to pursue spending that aims to meet Biden’s climate goals of 80 percent clean electricity and a 50-percent reduction in carbon emissions by 2030 by funding clean-energy tax incentives, federal procurement of clean energy technologies and a clean-energy accelerator.
  • It would pave the way for Democrats to pursue adding dental, vision and hearing coverage to Medicare, a top priority for many progressives, and allow Democrats to bolster expanded ObamaCare subsidies, expand Medicaid in states that have not already done so and lower patient spending on prescription drugs, the senior Democratic aide said.

The Hill’s Naomi Jagoda breaks it all down here.

What comes next: Biden’s agenda got a boost earlier in the day when Sen. Jon TesterJonathan (Jon) TesterDemocrats say Biden must get more involved in budget fight Senate backers of new voting rights bill push for swift passage The Hill's 12:30 Report - Presented by Facebook - Polls open in California as Newsom fights for job MORE (D-Mont.), a key centrist, said he would vote to proceed to the budget resolution. 

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“The price tag is a lot of money but it doesn’t scare me, it’s just how it’s being spent. There are plenty of needs out there, we just have to figure out how it’s being spent,” Tester told The Hill.

Another key centrist, Sen. Joe ManchinJoe ManchinPelosi says House members would not vote on spending bill topline higher than Senate's To reduce poverty, stop burdening the poor: What Joe Manchin gets wrong about the child tax credit Overnight Health Care — Presented by Indivior —Pfizer: COVID-19 vaccine safe for young kids MORE (D-W.Va.), said he’s “open” to the budget deal but cautioned he will need time to review how it’s paid for to make sure proposed corporate tax increases don’t hurt the competitiveness of U.S. companies in foreign markets.

“We’re anxious to basically review it. They worked hard on it, we want to see it. Also I’ve been very clear that I want to see the pay-fors and make sure that whatever we do is globally competitive,” Manchin told reporters.

Read more:

LEADING THE DAY

Key GOP lawmaker backs Powell for another term as Fed chief: The top Republican on the House Financial Services Committee on Wednesday called on President Biden to renominate Jerome Powell as chair of the Federal Reserve board.

In opening remarks during a Wednesday hearing with Powell, Rep. Patrick McHenryPatrick Timothy McHenryLobbying world Eviction ruling puts new pressure on Congress Roughly 90 percent of federal rental aid still untapped: Treasury MORE (R-N.C.) — the panel’s ranking member — said the Fed chief “earned and deserved another term” leading the central bank.

“There's a great deal of uncertainty right now,” McHenry said. “You have proven to be a steady hand throughout this pandemic and ongoing recovery, and you've defended the independence of the Fed. Thank you for your service. Thank you for your leadership.”

“Now, we're going to spend the next three hours telling you everything you've done wrong, but you do deserve another term,” he continued.

The background: McHenry’s endorsement comes as Biden weighs whether to renominate Powell, a Republican elevated to lead the Fed by former President TrumpDonald TrumpTrump takes shot at new GOP candidate in Ohio over Cleveland nickname GOP political operatives indicted over illegal campaign contribution from Russian national in 2016 On The Money — Dems dare GOP to vote for shutdown, default MORE in 2017. 

  • The Fed chief is widely liked and respected among lawmakers in both parties for standing up to Trump’s attacks on the central bank’s independence and leading the Fed’s successful efforts to stabilize financial markets during the onset of the coronavirus pandemic. 
  • Democrats also praised Powell for his thinly veiled support of a major fiscal response to the pandemic, while Republicans have backed his efforts to pare back some Dodd-Frank regulations.
  • Even so, Biden is facing pressure from progressives and financial sector critics to appoint a new chair more closely aligned with his politics. 

I’ve got more here.

Read more: Powell: Inflation likely to remain high before fading later this year

ON TAP TOMORROW:

  • Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee at 9:30 a.m.
  • The Senate Commerce Committee holds a hearing on supply chain resilience at 10:30 a.m.
  • A House Financial Services subcommittee holds a hearing on community development block grants and disaster recovery at 12 p.m.

GOOD TO KNOW

ODDS AND ENDS