Much of official Washington and interested observers outside the Beltway have been attempting to parse Senate Minority Leader Mitch McConnell’s bombshell last Thursday that appeared to drive a stake into bipartisan talks to pass a package of domestic semiconductor manufacturing incentives this summer.
After letting the Kentucky Republican’s comments sink in over the July Fourth holiday, we spoke to some veteran Washington hands about possible pathways for Democratic leaders to salvage both the competitiveness package and a skinnier version of their partisan budget reconciliation package. Getting both done before the August recess became more difficult after McConnell’s threat. However, there is another avenue for Democrats to have their cake and eat it too, if fraught with peril.
First, a little recap of where things stand: As McConnell tweeted Thursday, there won’t be a bipartisan competitiveness package “as long as Democrats are pursuing a partisan reconciliation bill.” He didn’t say anything about what happens after Democrats are done with reconciliation and President Joe Biden has signed it.
