Overnight Finance

On the Money — Dems pivot from Biden spending plan

Julia Nikhinson

Happy Tuesday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup. 

Today’s Big Deal: Senate Democrats are putting President Biden’s Build Back Better plan on ice with negotiations stalled. We’ll also look at a challenge to the SALT Cap and a race to confirm financial regulators. 

But first, find out why Sen. Tim Kaine (D-Va.) was trapped on the highway for 27 hours. 

For The Hill, we’re Sylvan Lane, Naomi Jagoda and Aris Folley. Write Sylvan at slane@thehill.com or @SylvanLane, Naomi at njagoda@thehill.com or @NJagoda and Aris at afolley@thehill.com or @ArisFolley. 

Let’s get to it.

Democrats hit pause on Build Back Better

Sen. J Manchin (D-W.Va.) addresses reporters to discuss Covid-19 on Tuesday, January 4, 2022. He also took questions regarding Build Back Better and other legislative issues.

Senate Democrats are putting President Biden’s climate and social spending plan on the back burner as they plan to debate voting rights legislation this month and hold a vote on changing the Senate’s filibuster rule. 

  • Democratic aides say the Build Back Better bill won’t be ready for floor action any time soon and predict the wide-ranging legislation that the White House has negotiated with centrist Democratic Sens. Joe Manchin (W.Va.) and Kyrsten Sinema (Ariz.) may have to be completely overhauled. 
  • Senate Majority Leader Charles Schumer (D-N.Y.) informed colleagues Monday the Senate will turn immediately to voting rights legislation and would vote to reform the chamber’s filibuster rule by Martin Luther King Jr. Day, on Jan. 17, if Senate Republicans block it. 

The context: Whatever version of the bill comes up for a vote will be markedly different from the $1.75 trillion framework that Manchin resoundingly rejected during a “Fox News Sunday” interview on Dec. 19, aides say. 

  • The Washington Post reported that Manchin in mid-December said he would accept a $1.8 trillion package that included funding for 10 years of universal prekindergarten, an expansion of Affordable Care Act subsidies and hundreds of billions of dollars in new funding to address climate change. 
  • But Manchin’s offer didn’t include an extension of the enhanced child tax credit, a major component of Biden’s American Rescue Plan, which expired last month. 

Alexander Bolton breaks it down here.



A record 4.5 million Americans quit their jobs in November 

A record 4.5 million American workers quit their jobs in November, a sign of confidence and more evidence that the U.S. job market is bouncing back strongly from last year’s coronavirus recession. 

The Labor Department also reported Tuesday that employers posted 10.6 million job openings in November, down from 11.1 million in October but still high by historical standards. 

Employers hired 6.7 million people in November, up from 6.5 million in October, the Labor Department reported Tuesday in its monthly Jobs Openings and Labor Turnover Survey. 



Blue states ask Supreme Court to hear challenge to SALT cap 

Four Democratic-leaning northeastern states are asking the Supreme Court to hear a case challenging the cap on the state and local tax (SALT) deduction created by Republicans’ 2017 tax law. 

New York, New Jersey, Connecticut and Maryland filed their SALT petition to the high court after a federal appeals court ruled against them in October. 

“I am proud we are taking this issue to the Supreme Court to continue to fight on behalf of New York taxpayers,” Gov. Kathy Hochul (D) said in a news release Monday. 

Read more from Naomi here.



Biden faces time crunch to pick financial watchdogs 

President Biden has a growing list of vacancies to fill at top financial watchdog agencies before he and his party risk losing control of the Senate.  

Biden has roughly a year to nominate and confirm some of the most important officials overseeing the financial system before the November midterm elections, in which Republicans are thought to have a good chance to recapture the Senate. 

“2022 is going to be a very busy year on the administrative agency level in large part because if the Democrats lose control of the House and Senate in 2023 it changes a little bit of a dynamic,” said Jason Rosenstock, partner at Washington, D.C., lobbying firm Thorn Run Partners.  

“It just makes it a little bit harder to move their agenda. So I think this is the year to pounce, so to speak.”  

Read more here from Sylvan.


Good to Know 

ford bmw automakers battery startup solid power million investing lithium-ion stronger safer

A record 4.5 million American workers quit their jobs in November, a sign of confidence and more evidence that the U.S. job market is bouncing back strongly from last year’s coronavirus recession. 

Here’s what else have our eye on: 

  • The U.S. hit yet another milestone in the coronavirus pandemic, recording more than 1 million new positive COVID-19 cases this week. 
  • Ford announced on Tuesday that it would almost double the annual production of its electric F-150 Lightning pickup truck. 
  • WSJ: “Federal Reserve Bank of Minneapolis President Neel Kashkari, who has been one of the central bank’s biggest supporters of providing stimulus to help the economy navigate the coronavirus pandemic, said he now believes more aggressive monetary policy actions will be needed to deal with high inflation.” 


That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow.

Tags Charles Schumer Joe Biden Joe Manchin Kathy Hochul Kyrsten Sinema Tim Kaine

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