President Joe Biden believes that Congress can still pass parts of his plan to invest in social programs and climate policy.
The president told reporters on Wednesday that he was confident that the law would be signed into law.
Biden's proposal hit a wall in December after Sen. Joe Manchin said he wouldn't vote for it. The House-passed bill would need the support of every Senate Democrat to get to Biden.
Biden has been talking to his colleagues in Congress. He thinks he can win support for more than $500 billion in spending to combat climate change.
Manchin supports early childhood education, a nod to the bill's universal pre-K provision.
The proposal would be revived in some form, according to Democrats including Manchin. Biden gave his clearest signal yet that he would accept a smaller version of the plan.
We can break the package up, get as much as we can, and then come back and fight for the rest of it, he said.
Representatives for House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer did not immediately respond to CNBC's requests for comment on Biden's remarks.
The White House wants to talk about the plan again. According to the wire service, the Biden administration would try to keep the climate change provisions, but remove or scale back some of the other parts of the legislation that Manchin doesn't like.
The report was described as wrong by the White House spokesman. The substance and details of the report are off base.
Universal pre-K, subsidies for child care and a one-year extension of a tax credit were included in the bill that was passed by the House. Medicaid would have been expanded to cover hearing aids for low-income Americans.
The legislation would have put a lot of money into climate programs.
The package is opposed by every Republican in Congress because it would make inflation worse.
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