Leading the news: In a tweet from Washington to Wall Street, McConnell said he intends to hold the China bill hostage. “Let me be absolutely clear: there will be no bipartisan USICA as long as Democrats seek a partisan reconciliation bill,” he said, referring to the Senate acronym for the bill. Game Status: Mancin and Senate Majority Chuck Sumer (DN.Y.) have made quiet progress in rescuing parts of President Biden’s Build Back Better agenda and drawing up a smaller package.
Speculation about these negotiations has grown over the past 24 hours, including efforts to address the cost of prescription drugs. Details have also emerged in the press about the possibility of raising corporate taxes on a bill that would only need Democratic votes to pass.
Why it matters: McConnell knows that China’s bill, which includes about $ 50 billion for the domestic semiconductor industry and about $ 100 billion for the National Science Foundation, is a top priority for Sumer and President Biden.
With his aggressive statement, the Republican leader leaves no doubt that he is willing to let the bill on China – which he voted on last June – wither. The bill passed the Senate 68-32, with 19 Republicans supporting the final vote. McConnell is also apparently not afraid of the political consequences of the possible assassination of a bill that business leaders are pushing Congress to take.
Between the lines: For weeks, Senate Democrats feared privately that McConnell would force them to choose between a reduced Build Back Better account and billions of dollars to help America cultivate its own semiconductor industry and compete more effectively with China in key technological areas.
Now, the minority leader has clarified his strategy.
The big picture: Schumer makes a concerted push to persuade House and Senate negotiators to clear up their differences over Chinese law and finalize an agreement by mid-July.
