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

Democrats' two-step infrastructure plan draws Republican ire

EconomyJun 25, 2021 02:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. U.S. President Joe Biden delivers remarks after a roundtable discussion with advisors on steps to curtail U.S. gun violence, at the White House in Washington, U.S. June 23, 2021. REUTERS/Jonathan Ernst/Files 2/2

By David Morgan, Richard Cowan and Andrea Shalal

WASHINGTON (Reuters) -Hours after President Joe Biden declared "We have a deal" to renew the infrastructure of the United States, the Senate's top Republican lashed out at plans to follow the $1.2 trillion bipartisan bill with another measure funding what Democrats call "human infrastructure."

Biden and top congressional Democrats - House of Representatives Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer - had long signaled their plan to link the bipartisan deal with another bill including spending on home health care and child care.

The second measure would be passed through a Senate maneuver called reconciliation https://www.reuters.com/world/us/us-senates-reconciliation-process-its-not-way-it-sounds-2021-06-16, which would allow it to take effect without Republican votes.

Biden told reporters at the White House that he expected quick action on both measures - or neither would survive.

"I expect that in the coming months this summer, before the fiscal year is over, that we will have voted on this (bipartisan) bill - the infrastructure bill - as well as voted on the budget resolution," he said. "But if only one comes to me, I'm not signing it. It's in tandem."

That drew a harsh response from Republican Senate Minority Leader Mitch McConnell.

"Less than two hours after publicly commending our colleagues and actually endorsing the bipartisan agreement, the President took the extraordinary step of threatening to veto it," McConnell said on the Senate floor. "It almost makes your head spin."

McConnell, Pelosi and Schumer have not been directly involved with the bipartisan infrastructure talks. McConnell has not publicly stated if he would back the initiative, though he called it "encouraging" in his floor remarks.

Lindsey Graham (NYSE:GHM), one of the 21 senators who had negotiated the bipartisan deal, said in a tweet: "If reports are accurate that President Biden is refusing to sign a bipartisan deal unless reconciliation is also passed, that would be the ultimate deal breaker for me."

Progressive (NYSE:PGR) members of Congress - some of whom were pushing for a sweeping $6 trillion bill - had indicated they would not support the smaller bipartisan bill without a companion measure.

The $1.2 trillion framework https://www.reuters.com/article/usa-biden-infrastructure-details/factbox-whats-in-the-us-senates-12-trillion-infrastructure-plan-idUSL2N2O62AV includes $579 billion in new spending on major investments in the power grid, broadband internet services and passenger and freight rail.

The eight-year proposal contains $109 billion for roads, bridges and major projects; $73 billion for power infrastructure; $66 billion for passenger and freight rail; $65 billion for broadband access; $49 billion for public transit; and $25 billion for airports, according to a White House statement.

That spending falls far short of Biden's original ambitions on schools, climate change mitigation, and support for parents and caregivers, and it doesn't include his bedrock pledge to make the U.S. economy more fair by increasing taxes on the rich and corporations.

Biden vowed to move "full steam ahead" on those priorities.

The compromise package would be paid for through more than a dozen funding mechanisms, including $100 billion in estimated tax revenues from a ramp-up in enforcement by the Internal Revenue Service, unused COVID-19 aid money, unemployment insurance funds returned by U.S. states, and oil sales from the Strategic Petroleum Reserve. [L2N2O62SZ]

The phrase "infrastructure week" became a Washington punchline during Donald Trump's four years as president after he promised to make such legislation a centerpiece but did not unveil a plan for Congress to consider, including financing mechanisms for projects.

Schumer said he supported the outline of the deal but wanted to see the details. He also said the $1.2 trillion bill focused on physical infrastructure would not get the Democratic votes needed to pass it without an accompanying package tackling social issues, including home healthcare.

"All parties understand, we won't get enough votes to pass either, unless we have enough votes to pass both," Schumer said on the Senate floor. He said the Senate would aim for a vote on the bipartisan plan next month.

RECONCILIATION REDUX

Pelosi said the House would vote on the bipartisan bill only after the Senate had also approved the additional reconciliation bill, meaning the battle over the bills could extend into September and beyond.

Biden, seeking to fuel economic growth and address income inequality after the coronavirus pandemic, initially proposed spending about $2.3 trillion. Republicans chafed at his definition of infrastructure, which included fighting climate change and providing care for children and the elderly.

The White House later trimmed the package to about $1.7 trillion in an unsuccessful bid to win the Republican support needed for any plan to get the 60 votes required to advance most legislation in the evenly split 100-seat Senate.

A major sticking point had been how to pay for the investments. Biden has pledged not to increase taxes on Americans earning less than $400,000 a year, while Republicans are determined to protect a 2017 cut in corporate taxes.

Republican Senator John Thune said there were questions about whether watchdogs, including the Congressional Budget Office, would recognize some of the funding mechanisms as achieving savings.

Democrats' two-step infrastructure plan draws Republican ire
 

Related Articles

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 (14)
Alan Rice
Alan Rice Jun 25, 2021 12:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Human Infrastructure" - Yeah. I don't see the Trumpublicans going for this much common sense.
perplexed76 .
perplexed76 . Jun 24, 2021 11:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
don't tell yellen about this debt plan, she will collapse
Jeff Gordon
Jeff Gordon Jun 24, 2021 11:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
as inflation goes higher and higher and higher. literally destroying the country and they are either clueless or don't care.
Sol Wein
Sol Wein Jun 24, 2021 10:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We and our kids and their kids will be paying out the nose for this garbage. Its time people understood, we are broke as a nation and there is no money!
Ad Cline
Ad Cline Jun 24, 2021 5:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
we finally have an administrationthat's getting something done about our dilapidated infastructure.
Patron Silver
Patron Silver Jun 24, 2021 3:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Partisan do nothing McConnell would have been throwing confetti in the air if the orange ape-man had proposed the deal.
Tre Hsi
Tre Hsi Jun 24, 2021 3:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
well, republicans only care about federal budget deficits during democrat presidents/administrations, during republican administrations all of the sudden it's not a topic anymore
James Andrews
James Andrews Jun 24, 2021 3:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All a show of bipartisanship before these communists ram another welfare bill through with reconciliation. Country is in flames.
Tru Gfu
Tru Gfu Jun 24, 2021 3:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bridges are communist and welfare now? that is absurd and ignorant.
James Andrews
James Andrews Jun 24, 2021 3:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This bipartisan bill is for roads and bridges, actual infrastructure. The welfare bill they jam through later is for child care and staying home from work
Tre Hsi
Tre Hsi Jun 24, 2021 3:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Country is in flames."  -- is it?  I am pretty sure it's a lot calmer now compare to 12 months ago, but hey, why let facts get in the way of a good rant eh?
Trevor Roberts
LimitUp Jun 24, 2021 3:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Love or hate him, Trump was not a swamp insider. Now the swamp is getting bigger and bigger
Ad Cline
Ad Cline Jun 24, 2021 3:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
limit up..insider no.. he created an even bigger swamp. Trump's pay to play schemes, millions of dollars in gifts to his family from foreign governments, including China, creating tax policies that dropped his business, and his family's tax liabilities by70%; his attempted use of the Attorney Generals Office to hide his lawlessness, and attack his enemies, makes him king of the Washington DC swamp.
Tre Hsi
Tre Hsi Jun 24, 2021 3:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
is that why Trump signed the first 2 covid relief bills and added $3T to the national debt?
HD HD
HD HD Jun 24, 2021 2:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mitch McConnell has to go.
palmer gossett
palmer gossett Jun 24, 2021 2:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A second bill will address all of the pork not included in this bill. And it will pass via reconciliation by democrat socialists
martin lewis
martin lewis Jun 24, 2021 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If Republicans support this thing, they can kiss the mid-terms goodbye. Republicans rocked 2020, flipped nearly half dozen house seats. The only thing Democrats won was the Presidency, but that involve them losing on election night, halting counting for days in swing states, then magically finding boxes of ballots for Biden in key counties and boarding up windows form observes while counting ballots. All republicans have to do is let Biden keep talking about chocolate cholate chip ice cream and sni.ff.ing children while democrats in Congress waste time crying bout Trump and pushing far left agenda and republicans can easily dominate 2022. I am an independent and the modern DNC has me even rooting for republicans to stop these tyrannical and wasteful democrats who have gone completely insane. Need to maintain checks and balances....DNC going full China/North Korea.
HD HD
HD HD Jun 24, 2021 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
American roads, bridges and infrastructure is falling apart. this is much needed. w t f you talking about ?
John Eisenbeiser
John Eisenbeiser Jun 24, 2021 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
HD HD what hsppened to all those shovel ready projects. Infrastrucure spending is always a political pork darling.
martin lewis
martin lewis Jun 24, 2021 1:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If Republicans support this thing, they can kiss the mid-terms goodbye. Republicans rocked 2020, flipped nearly half dozen house seats. The only thing Democrats won was the Presidency, but that involve them losing on election night, halting counting for days in swing states, then magically finding boxes of ballots for Biden in key counties and boarding up windows form observes while counting ballots. All republicans have to do is let Biden keep talking about chocolate cholate chip ice cream and sni.ff.ing children while democrats in Congress waste time crying bout Trump and pushing far left agenda and republicans can easily dominate 2022. I am an independent and the modern DNC has me even rooting for republicans to stop these tyrannical and wasteful democrats who have gone completely insane. Need to maintain checks and balances....DNC going full China/North Korea.
Alan Rice
Alan Rice Jun 24, 2021 12:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Make Parks, NOT roadways. Tic-toc.
Klaus Weyers
Klaus Weyers Jun 24, 2021 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
unconventional infrastructure is the euphemism of the year.. home health care and elderly care has nothing to do with infrastructure
Fermin Ochotorena
Fermin Ochotorena Jun 24, 2021 11:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are are absolutely right. Big lies for more spending with much worse inflation that will destroy the economy and the country. And the rest of the world is also doing the same thing spending and spending through more debts.
 
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