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President Joe Biden suffered an embarrassing setback for his multitrillion dollar spending plans on Thursday night as Democrats abandoned a vote in Congress on his infrastructure bill and the party's civil war escalated. 

A day of private negotiations and public mudslinging ended shortly before 11pm as Biden's congressional lieutenants called off the House vote amid a heated verbal war between moderates and progressives.

It leaves Biden's domestic agenda hanging in the balance. Progressives are threatening to tank his $1 trillion infrastructure plan, which centrists support, if the moderate faction does not also back his broader $3.5 trillion social spending bill. 

After meeting with White House officials, centrist Democrat Senator Joe Manchin sounded the death knell. 

'I don't see a deal tonight,' he said. 'I really don't.' 

It meant House Speaker Nancy Pelosi was forced to delay Thursday's planned vote on the bipartisan bill to rebuild roads and bridges, but she vowed to bring the measure to the floor on Friday.

'There'll be a vote today,' a weary-looking Pelosi told reporters as she left the Capitol at 12.01am on Friday. 'We're not trillions apart.' 

However, it remained unclear what progress -- if any -- had been made between the warring factions, and Pelosi has already twice delayed the vote after first promising it on Monday, and then on Thursday. 

House Speaker Nancy Pelosi was forced to delay a vote planned for Thursday on the bipartisan bill to rebuild roads and bridges amid a progressive revolt, but vowed to bring the measure to the floor on Friday

After meeting with White House officials, centrist Democrat Senator Joe Manchin sounded the death knell for a vote on Thursday night. 'I don't see a deal tonight,' he said. 'I really don't.'

House progressives, including Reps. Ilhan Omar (left) and Alexandria Ocasio-Cortez (right), vowed to vote against the infrastructure bill unless Manchin and Sinema sign on to support a bigger $3.5 trillion social spending package as well

House progressives, who find themselves with growing leverage, have vowed to vote against the infrastructure bill unless there is progress on the bigger package that would raise taxes on America's wealthiest to pay for social care, free education and other of Biden's domestic priorities.

Democratic Representative Ilhan Omar, a leader of House progressives, told reporters: 'Nothing has changed with our caucus members. We don't have the votes to pass infrastructure.'

The result was Biden's own party digging in to halt almost his entire domestic policy agenda.  

The standoff cast a long shadow over the White House, where the lights burned long into the night.

Officials insisted that progress had been made, and the White House vowed to bring the warring groups back to the table first thing on Friday.

'A great deal of progress has been made this week, and we are closer to an agreement than ever,' said Press Secretary Jen Psaki. 

'But we are not there yet, and so, we will need some additional time to finish the work, starting tomorrow morning first thing.' 

The bipartisan infrastructure bill, which has already passed the Senate, now needs only to pass the Democrat-controlled House before it heads to Biden's desk. 

The broader spending package is now in a budgetary process called reconciliation, which requires every Democrat in the evenly divided Senate to vote yes in order to pass without Republican support.

Throughout the day on Thursday, Democratic holdouts Manchin and Senator Kyrsten Sinema were huddled in close talks with White House domestic policy adviser Susan Rice, Director of the National Economic Council Brian Deese, and other White House officials. 

After sundown, Pelosi issued a letter to Democratic colleagues saying that it had been 'a very productive and crucial day.'

'It has been a day of progress in fulfilling the President's vision to Build Back Better,' she wrote, referencing the slogan for Biden's domestic agenda. 

'All of this momentum brings us closer to shaping the reconciliation bill in a manner that will pass the House and Senate,' Pelosi added. 

But as the hours stretched on, it became clear no deal was apparent. 

Sen. Joe Manchin, D-W.Va., squeezes into an elevator with White House domestic policy adviser Susan Rice, center, Director of the National Economic Council Brian Deese, left, and other White House officials as they leave a private meeting

Moderate Senators Kyrsten Sinema and Joe Manchin are in favor of infrastructure, but are infuriating colleagues with their refusal to back President Biden's broader $3.5 trillion spending plan

Reporters wait outside a private meeting between Senators Manchin and Sinema and White House officials on Thursday 

Sinema leaves a private meeting with White House officials on Capitol Hill Thursday, but appeared to reach no deal

The setback for Biden's agenda came despite a moment of victory earlier in the day as Republicans and Democrats agreed to keep funding the federal government through December 3. 

But instead of inviting reporters into the Oval Office to watch the president sign a funding bill to keep the government running, the White House simply sent out a picture of the signing and a statement.

'There's so much more to do,' said Biden. 

'But the passage of this bill reminds us that bipartisan work is possible and it gives us time to pass longer-term funding to keep our government running and delivering for the American people.'  

Without a deal beating Thursday's midnight shutdown deadline, hundreds of thousands of government workers would have been furloughed, dealing a deep blow to an economy still rebuilding after COVID-19 closures. 

The House approved the measure with a bipartisan 254-175 vote, hours after it passed the Senate. 

The deal allocates funds to keep the government running through December 3, and also includes funding for Afghan refugees and disaster relief. 

The White House issued a photograph of President Biden signing a bill to avert government shutdown on Thursday rather than inviting press cameras to witness the moment as he and officials battle to stave off an embarrassing setback to his domestic policy agenda

Speaker of the United States House of Representatives Nancy Pelosi (Democrat of California) is joined by House Democrats as she signs a House continuing resolution to keep funding the government, at the US Capitol in Washington, DC, Thursday, September 30, 2021

Democratic Rep Josh Gottheimer, a key moderate leader, said the night was far from over

The administration faces another crucial vote next week on suspending the debt ceiling, which is needed to ensure the government can borrow enough money to pay its bills through October.

And two hold-out senators are delaying not just a massive $3.5 trillion spending bill but a bipartisan plan to spend $1 trillion on renewing the nation's roads, bridges and other infrastructure.  

White House officials met with Manchin, along with Senator Kyrsten Sinema and socialist Bernie Sanders in the evening to thrash out a deal.

The centrists want a smaller price tag and are wary of steep tax hikes to fund the package - but progressives, who initially wanted a $6 trillion deal, say they have already given up enough. 

Sanders blasted the idea that an agreement could be reached with the clock ticking down.

'It is an absurd way to do business, to be negotiating a multi-trillion-dollar bill a few minutes before a major vote with virtually nobody knowing what's going on,' he told CNN.

'That's unacceptable. And I think what has got to happen is that tonight, the bipartisan infrastructure bill must be defeated.'

President Biden spoke to Republicans during a visit to the Congressional baseball game on Wednesday as part of his effort to keep spending plans on track

Even after the delay was announced, Democratic Rep. Josh Gottheimer, a key moderate, said talks would continue later into the night.

'This is just one long legislative day — we literally aren't adjourning,' he tweeted.

'Negotiations are still ongoing, and we're continuing to work.'

Earlier Manchin told reporters he could only support a $1.5 trillion package. 

The two Democratic holdouts posed for a picture on Thursday morning as Sinema said talks had been productive

Reps. Alexandria Ocasio-Cortez and Cori Bush blasted him for now demanding that Democrats trim the bill after backing an earlier version of the massive package.

'We need to be serious and right now when we are seeing from the conservative side and the small cadre of people is a fundamentally unserious pattern of negotiation,' Ocasio-Cortez told ABC News. 

She ridiculed what she saw as a change in stance.

'Which senator are we negotiating with?' she asked. 

'Will it be June Manchin? Is it September Manchin? Is it August Manchin? ... Will it be a different senator that pops up?'

House Progressive Caucus Chair Pramila Jayapal also condemned moderates for standing in the way of the bigger spending package.

'We won't let massive corporations, billionaires, and a few conservative Democrats stand in the way of delivering transformational progress for millions of working people,' she said in a tweet.

'Stick to the plan. Pass both bills, together.' 

The huge bill will be funded with tax hikes that mainly target the rich.

They included raising the corporate tax rate from 21 per cent to 26 percent for the biggest companies, and the top income tax rate for Americans making over $400,000 would increase from 37 per cent to 39.6 percent. The top capital gains rate would also go from 20 percent to 25 percent.

With the two wings of the Democratic Party apparently at war, the White House tried to play down the idea that Biden was not in control of his own party.

Press Secretary Jen Psaki said different opinions were a normal part of politics.

'This is how democracy works,' she said during her daily briefing before aiming a dig at former President Donald Trump.

'I know it feels foreign because there wasn't much that happened over the last couple of years

'But how it works is the American people elect their elected officials, the president of the United States puts forward a bold and ambitious proposal, and then everybody negotiates about it.'

BIDEN'S $3.5T BUILD BACK BETTER PLAN: WHAT'S IN THE 2,465-PAGE BILL AND HOW THE DEMOCRATS WILL PAY FOR IT 

The text of the Build Back Better Act, released by Democrats on the House Budget Committee over the weekend, for the first time reveals how President Biden's allies plan to spend a whopping $3.5 trillion.

Critics have already seized on one of its most controversial measures: An extra $79 billion for the Internal Revenue Service over the next decade to expand audits and strengthen enforcement.

There are also a number of welfare, social and climate provisions contained in the 2,465 page bill that have led to opposition from moderates in the Democratic party and Republicans. 

 

Two free years of community college

The legislation provides two years of free community college for all students. The anticipated to cost $108 billion.

The bill would also add $80 billion in funding for Pell Grants for families with a total income of up to $50,000 which Democrats say hasn't kept pace with the increasing cost of college.

 

Climate change

The plan includes $3 billion for 'tree equity', $12 billion for electric cars, $1 billion more to turn government facilities into 'high-performance green buildings' and millions more for gender identity and bias training.

The legislation would also spend billions of dollars to tackle climate change, including President Biden's proposed 'Climate Change Corps.' It would get $7.5 billion for conservation work on public lands.

 

Government training 

Race and gender-based issues come with smaller spending, but will likely raise hackles among Republicans and moderate Democrats.

The bill includes $25 billion for non-profits to provide 'anti-discrimination and bias training' in health care.

 

Biden spoke to Republicans and Democrats during a visit to the Congressional baseball game on Wednesday evening

Extended child tax credit

Democrats expanded the child tax credit for 2021 in their $1.9 trillion COVID-19 relief plan, and now want to extend it through 2025.

Under the enhancement, families receive $3,600 per child under age 6, and $3,000 per child age 6 to 18. Most families receive monthly payments of either $250 or $300 per child.

The full expanded child tax credit is available to individuals making up to $75,000 or married couples making up to $150,000, 

Tax cuts for workers without children

The White House says roughly 17 million low-wage workers will benefit from the increase in the Earned-Income tax credit from $543 to $1,502. 

 

Paid family medical leave

U.S. would have comprehensive paid leave, covering 12 weeks of paid family and medical leave. The legislation would replace at least two-thirds of earnings, up to $4,000 per month, while the lowest-paid workers would receive 80 percent of their income.

 

Child care and universal pre-K

Every family that applies shall be offered child care assistance for children ages 0 to 5. In all, the plan allocates roughly $450 billion to lower the cost of child care and provide two years of universal pre-K for 3- and 4-year-olds, according to the House Education and Labor Committee.

The panel estimated that this proposal would keep the cost of child care at or below 7 per cent of most families' income.

 

Medicare expansion

This heavily debated provision would expand Medicare to include coverage of dental, hearing and vision services. 

 

Cut prescription drug prices

Another key part of the bill is aimed at helping to slash prescription drug prices. 

Americans on average pay two to three times as much as people in other countries for prescription drugs, according to the White House.

The administration will lower drug costs by letting Medicare negotiate prices and removing the impact of pharmaceutical companies. 

 

How the Biden administration plans to pay for it

Democrats have included tax plan to pay for the huge bill, that mainly targets the rich.

The corporate tax rate would rise from 21 per cent to 26 percent, and the top income tax rate for Americans making over $400,000 would increase from 37 per cent to 39.6 percent. The top capital gains rate would also go from 20 percent to 25 percent.

Biden has promised he won't raise taxes on anyone earning less than $400,000, but Republicans insist that simply won't happen. 

Democrats are also looking to spend $79billion in additional funding to bulk up IRS enforcement and try and crack down on tax avoiders.

This includes a plan that banks will be have to report transactions over $600 to the IRS. 

This crackdown on unreported income is expected to generate $463 billion over the next decade, according to the Office of Tax Analysis. That money would be used to partially fund Biden's $3.5 trillion budget reconciliation plan.

The Joint Committee on Taxation estimates the tax changes spearheaded by Democrats would raise more than $2 trillion in revenue over 10 years, with roughly $1 trillion in tax increases from high-income Americans and nearly $1 trillion from corporate and international tax reforms.

 

How much will it really cost?

The White House has suggested that the huge spending plan will cost 'zero dollars'.

But an analysis by the Committee for a Responsible Federal Budget (CRFB) found the proposals in the agenda would require the US to directly borrow $1 trillion, projecting that nearly $3 trillion would be added to the national debt over the next 10 years.

The former measure, which passed the Senate in August, would only offset its own costs by about $200 billion according to the CRFB. That leaves $350 billion to be paid.  

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