Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Biden backs $3.5 trln spending plan, Republicans blast massive package

EconomyJul 14, 2021 07:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: U.S. President Joe Biden delivers remarks highlighting the benefits of Bipartisan Infrastructure Framework, at La Crosse Municipal Transit Utility, in La Crosse, Wisconsin, U.S., June 29, 2021. REUTERS/Kevin Lamarque

By Susan Cornwell and David Morgan

WASHINGTON (Reuters) -President Joe Biden made the case for his sweeping, two-track infrastructure initiative on Capitol Hill on Wednesday, a day after leading Senate Democrats agreed on a $3.5 trillion plan billed as the biggest boost in decades for U.S. families.

Biden joined fellow Democrats for a closed-door lunch where he sought their support and discussed strategy for passing both a $1.2 trillion bipartisan infrastructure deal https://www.reuters.com/world/us/whats-us-senates-12-trillion-infrastructure-plan-2021-06-24 to rebuild America's roads and bridges, and the larger Democratic https://www.reuters.com/world/us/us-senates-reconciliation-process-its-not-way-it-sounds-2021-06-16 package that also addresses climate change and the need for stronger social services.

"We're going to get this done," Biden said as he walked into the meeting with Democratic senators.

Republicans voiced immediate objections to the plan's massive size, as did at least one key moderate Democrat whose support would be critical to passage.

Biden urged senators to think about how the package would affect average Americans, said Senator Chris Murphy.

“He just kept on telling us to think about his neighbors in Scranton," Murphy said, referring to Biden's Pennsylvania hometown. "Think about whether what we're doing is going to pass muster with the folks that he grew up with."

An Ipsos poll conducted this month for Reuters found that most Americans want the kind of infrastructure improvements that are included in the Biden plan. It also found that nearly two-thirds of the country supports increasing taxes on "the highest-earning Americans" to pay for the improvements.

Democrats face a tricky path ahead in getting the two measures approved by a narrowly divided Congress. They will need the support of all 50 of their senators - plus Vice President Kamala Harris' tie-breaking vote - to pass the $3.5 trillion over Republican opposition in the 100-seat Senate, using a maneuver called reconciliation that gets around the chamber's normal 60-vote threshold to pass legislation.

Elements of the $3.5 trillion plan also would have to pass muster with the Senate parliamentarian, who has the power to rule specific provisions ineligible for inclusion under the special reconciliation rules for that legislation's consideration.

While some of the more liberal Democrats on Wednesday said they had hoped for a bigger plan, they had yet to reject the $3.5 trillion deal.

"The need is so much greater than what we’re providing. But still, this is very significant," Senator Mazie Hirono told reporters.

As the day wore on, Democrats across Capitol Hill tried to demonstrate unity over the 10-year investment framework. House of Representatives Speaker Nancy Pelosi called it a "victory for the American people."

And just as Biden was leaving the Capitol, he got a boost from the head of the Congressional Progressive (NYSE:PGR) Caucus, a nearly 100-member group of lawmakers whose support is essential.

"We are still looking at all the details but we certainly see this as important movement forward," said Democratic Representative Pramila Jayapal, who heads the group.

Democratic Senator Joe Manchin, an outspoken moderate, stressed the need to offset the $3.5 trillion cost amid large budget deficits.

Manchin also fretted that the plan could eliminate subsidies for fossil fuels, a key demand from progressives worried about climate change.

"Anybody moving in a direction where they think they can walk away and not have any fossil in play, that's just wrong. It won't happen," said the senator, who represents the coal-mining state of West Virginia.

Senate Finance Committee Chairman Ron Wyden, whose panel oversees tax legislation, said a Democratic plan to raise international taxes on corporations would raise "several hundred billion dollars" on its own.

REPUBLICANS SAY TOO PRICEY

Senate Republican Leader Mitch McConnell wasted no time in going on the attack.

"With inflation raging ... (the Democrats' budget plan) is wildly, wildly out of proportion to what the country needs right now," he told reporters.

U.S. consumer prices rose by the most in 13 years https://www.reuters.com/business/finance/us-consumer-prices-surge-june-2021-07-13/#:~:text=WASHINGTON%2C%20July%2013%20(Reuters),the%20economic%20recovery%20gathered%20momentum.&text=Used%20cars%20and%20trucks%20prices%20accelerated%2010.5%25 last month amid supply constraints and a rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum, according to data released on Tuesday.

Republican Senator Rob Portman dismissed any notion that the level of spending being proposed would sink prospects for passage of the smaller, bipartisan bill. A group he leads plans to provide details on the legislation in coming days.

Even if they pass the Senate, both measures would also need to make it through the House before going to Biden's desk for signing into law.

The $3.5 trillion plan agreed to by senior Democrats and White House negotiators includes a significant expansion of the Medicare healthcare program for the elderly - a top goal of Senate Budget Committee Chairman Bernie Sanders, who joined Democratic Senate Majority Leader Chuck Schumer in unveiling the deal Tuesday night.

Senate Republicans, who assail Biden's larger spending ambitions as unnecessary, have voiced qualified support for the narrower $1.2 trillion plan, which includes nearly $600 billion in new spending for roads, bridges, rail, public transit, water and broadband internet systems.

The Senate's 50 Republicans are not expected to back the broader infrastructure effort, which would undo Republican then-President Donald Trump's 2017 tax cuts by raising taxes on U.S. corporations and wealthy individuals.

Asked about the Democrats' deal on Wednesday, Republican Senator Mitt Romney said in a brief interview in the Capitol, it was “stunning. It’s a shocking figure, particularly at a time when the economy is already heating. It seems that our Democrat friends may have lost their bearings.”

Biden backs $3.5 trln spending plan, Republicans blast massive package
 

Related Articles

Marketmind: Ready for a summer lull?
Marketmind: Ready for a summer lull? By Reuters - Jul 30, 2021

LONDON (Reuters) - A look at the day ahead from Karin Strohecker. We are almost at the end of a pretty breathless month: The peak growth versus peak inflation debate got a fresh...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Red Riley
Red Riley Jul 14, 2021 11:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
crack head
James Andrews
James Andrews Jul 14, 2021 10:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Keep American dollars out of dirty communist hands by any means possible!
David David
David9 Jul 14, 2021 10:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Well...the more we print, the more the dollar flows to China... China is an economic Lion...
David David
David9 Jul 14, 2021 10:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
After this, national debt approaching $35T... by the time Biden is done, we will be closer to $45T...
Roger Miller
Roger Miller Jul 14, 2021 6:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As social services spending has increased through the decades social problems have become worse. What’s it called when you keep doing the same thing but expect different results?
Nordin Mohamad
Nordin Mohamad Jul 14, 2021 6:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wining by cheating vote = stealing people will n stealing country wealth
Klaus Weyers
Klaus Weyers Jul 14, 2021 6:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
calling it infrastructure legislation with only 20% being used for infrastructure is a very sad joke
Klaus Weyers
Klaus Weyers Jul 14, 2021 5:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
poor America.. the dems are close to wrecking what used to be the best country.. all they know is debt financing, printing money and stealing from the most productive membera of society..
Trat Nguyen
Trat Nguyen Jul 14, 2021 5:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are a thief yourself Klaus, and one of the least productive members of society.  Go back to Europe and hang out with your ******parents.
Trat Nguyen
Trat Nguyen Jul 14, 2021 5:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
N A Z I
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email