Soaring inflation is shaking up negotiations on Capitol Hill over President Biden’s Build Back Better agenda, giving Sen. Joe Manchin (D‑W.Va.) and other centrists more leverage to push for a smaller reconciliation package.

The annual inflation rate hit a 30-year high under Labor Department statistics released Wednesday, giving ammunition for Manchin to argue against government spending.

In the wake of the numbers, Democratic aides and strategists are growing less optimistic that Manchin can be persuaded to support adding back a proposal to establish a national paid family leave program. And it’s possible Manchin could more forcefully press for new cuts.