Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Biden, pushing $1.75 trillion spending bill, dealt setback on infrastructure

Published 10/28/2021, 06:56 AM
Updated 10/28/2021, 08:57 PM
© Reuters. The U.S Capitol seen at night from Pennsylvania Avenue in Washington, U.S., October 24, 2021. REUTERS/Sarah Silbiger/File Photo

By Trevor Hunnicutt and Richard Cowan

WASHINGTON (Reuters) -U.S. President Joe Biden was dealt a setback on Thursday as the House of Representatives abandoned plans for a vote on an infrastructure bill with progressives seeking more time to consider his call for a separate $1.75 trillion plan for climate measures, preschool and other social initiatives.

Biden had sought to unite his party behind the climate and social spending plan with personal appeals on Thursday, and had pressed for a Thursday vote on the $1 trillion infrastructure bill, another main plank of his agenda.

He hoped a framework on the larger measure would convince progressive House Democrats to support the infrastructure bill, but their insistence that the two move together led House leaders to abandon a planned vote, leaving Biden empty handed.

"We have a historic economic framework" that will create jobs and make the United States more competitive, Biden said after a last-minute trip to Congress to enlist progressives' support. He then departed for a summit of leaders from the Group of 20 countries and global climate talks.

He left behind a U.S. Congress bubbling with conflicts and unanswered questions, but one that seemed to be inching towards votes on his economic agenda, perhaps within days.

How, exactly, it could come together remained a puzzle.

"Dozens of our members insist on keeping both bills linked and cannot vote only for one until they can be voted on together," Representative Pramila Jayapal https://www.reuters.com/world/us/negotiating-left-pramila-jayapal-now-center-joe-bidens-agenda-2021-10-28, a leader of House progressives, said in a statement.

The fight over $2.75 trillion in spending that could shape the U.S economy for years to come will play out in coming days with Biden, who has been heavily involved in negotiations, thousands of miles away. He won't return to the Washington until Wednesday.

In a meeting with House Democrats on Thursday, Biden pleaded for their support, according to a person familiar with the matter.

"I need you to help me; I need your votes," the person quoted Biden as saying. "I don’t think it's hyperbole to say that the House and Senate (Democratic) majorities and my presidency will be determined by what happens in the next week."

The White House said Biden's agenda was still on track, even if it was moving through Congress more slowly than the president might wish.

"We’re confident that soon we’ll pass both the Build Back Better Act and the Bipartisan Infrastructure Deal," White House spokeswoman Jen Psaki said in a statement.

Biden ran for president on a promise to curb growing inequality in America https://www.reuters.com/article/us-usa-biden-economy-analysis/can-joe-biden-recreate-the-u-s-economy-he-grew-up-with-idUSKBN2BO50O, using education and social spending paid for by companies and the rich. He vowed to depart from Republican tax-cutting including a 2017 tax reduction under his predecessor, Donald Trump.

The president had hoped to reach an agreement before the Rome G20 summit, where a global minimum tax will be high on the agenda, and a climate conference in Glasgow, where Biden hopes to present a message that the United States is back in the fight against global warming.

"Not everyone got everything they wanted, not even me," Biden conceded in his White House remarks. "But that’s what compromise is. That’s consensus. And that’s what I ran on."

Former President Barack Obama echoed a similar sentiment. "The Build Back Better framework doesn't contain everything the president had proposed and that some had hoped. But that's the nature of progress in a democracy," Obama said, calling the plan a "giant leap forward."

The White House said the larger spending plan framework Biden presented on Thursday would be fully paid for by repealing certain tax rebates passed under Trump and imposing surcharges on corporate stock buybacks and the earnings of the wealthiest Americans.

The framework includes $555 billion in spending for climate initiatives and six years of preschool funding among other top agenda items.

Many groups including labor unions welcomed the plan. "The reconciliation framework is a pro-worker victory: child care, home care, clean energy jobs, health care, tax fairness, immigration improvements and support for worker organizing," said AFL-CIO President Liz Shuler.

But the plan does not include paid family leave or a tax on billionaires. Some influential lobby groups and constituencies were angered by the absence of key Biden administration pledges.

"We are outraged that the initial framework does not lower prescription drug prices," AARP, an advocacy organization for the elderly, said in a statement.

© Reuters. U.S. President Joe Biden delivers remarks about his Build Back Better agenda and the bipartisan infrastructure deal as Vice President Kamala Harris stands by in the East Room of the White House in Washington, U.S., October 28, 2021. REUTERS/Jonathan Ernst

The absence of paid leave, Democrats noted, left the United States as the only rich country and one of the few nations in the world that doesn't pay woman on maternity leave.

Some Republicans support the infrastructure measure but most lawmakers in that party oppose both bills, and Biden can only afford to lose three votes in the House to get either passed.

Latest comments

The race is on to pass both bills before fomc tapering tanks the market lol
Democrats want to hire 100k IRS agents to go after small business..so that they can continue to live free
You have to pay your taxes
Inventing lies again Ferdi?
the USD has lost 98% of its value since 1971
Trump 2024 can't get here soon enough
Seditionist 2024. Red hats are all chicken hawks who simp for their daddy trump
The gdp to government debt parabola is about to turn negitive and when it descends it goes very fast… we will soon be spending 1$ in gov spending to bring back in .85$… but they will blame trump for it
rich people only buy the politicians or side that they agree with.... if you believe that punch yourself lol
Clay Douglas, your English **** go back to your Chinese shill school and learn some grammar before your next post.
Gotta love the person who attacks other people on thier grammar… abstinent by choice? Right? Right….
BS liars...Ain't Nutting getting signed..$200 million ,for a park,in Pelosis name..F NO!!!
Hes trying to ram it down thier throats
Enough with climate change c#. It is a tool to milk/tax u. They already raise tax on all of us via electricity,gas, cooking gas,etc
Vax will turn you into a lizard! The earth is flat! Go Trump! Go Jesus!
He heard they had ice cream.
Vax will turn you into a lizard! The earth is flat! Go Trump! Go Jesus!
anyone that's for what's being pushed by this wh administration is clueless, get educated
let's be honest here... he didn't "race" anywhere...
https://babylonbee.com/news/biden-says-we-can-afford-35t-bill-because-china-just-gave-him-a-new-35t-visa-card-with-low-introductory-rate
They can't agree on anything lol
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.