TL/DR –
Sen. Joe Manchin played a significant role in shaping the Biden Administration’s Inflation Reduction Act, which aimed to build a market and infrastructure for electric vehicles in the U.S. He initially blocked the Build Back Better plan and later worked to break the bill into two parts; one for infrastructure and the other to build a battery supply chain. The Inflation Reduction Act was signed into law in August 2022, with Manchin arguing it has helped the economy by reducing inflation and increasing the production of energy.
Manchin’s Role in Biden’s Inflation Reduction Act
Sen. Joe Manchin, chairman of the Senate’s Energy and Natural Resources Committee and a key figure in the Biden Administration’s signature Inflation Reduction Act, is praised for his critical role in the legislation’s passage. Despite previously blocking the Democrats’ Build Back Better initiative, Manchin is highlighted as a key player in driving the development of the US electric vehicle market and infrastructure.
According to Benchmark CEO Simon Moores, speaking at the Benchmark USA 2024 conference, the Inflation Reduction Act was a game-changing legislation. Read more on this here.
Manchin admits that his support for the Act was initially uncertain and was driven by the Ukrainian war and concerns over energy security. He also confesses to blocking the Build Back Better bill due to its high cost, which he feared would lead to an economic downturn.
Unbeknownst to the public, Manchin worked behind the scenes to divide the original bill into two parts – one for infrastructure and the other to build a battery supply chain. This decision resulted in the creation of the Infrastructure and Jobs Act and the Inflation Reduction Act.
Manchin “traded a vote” for the $1 trillion Infrastructure and Jobs Act, which was passed and signed into law in November 2021. He and Sen. Krysten Sinema also supported a $3.5 trillion budget resolution for fiscal 2022, paving the way for passing the Inflation Reduction Act.
Following Russia’s invasion of Ukraine in February 2022, Manchin and Senate Majority Leader Chuck Schumer began working towards a compromise. Manchin encouraged the development of a reliable supply chain for critical minerals and North American manufacturing of anodes, cathodes, and batteries.
Manchin expressed concerns over China’s control of global cathode and anode material production. He sees the Act, which was signed into law on Aug. 16, 2022, as a successful initiative that has curtailed inflation and boosted energy production in the US.
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