Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Biden infrastructure, jobs spending push could hit $4 trillion: source

Published 03/22/2021, 03:02 PM
Updated 03/22/2021, 08:01 PM
© Reuters. Clothes hang outside to dry behind an apartment as a buzzard flies during the spread of the coronavirus disease (COVID-19) in West Belle Glade, Florida

© Reuters. Clothes hang outside to dry behind an apartment as a buzzard flies during the spread of the coronavirus disease (COVID-19) in West Belle Glade, Florida

By Steve Holland and Jarrett Renshaw

WASHINGTON (Reuters) - President Joe Biden will be briefed by advisers this week on infrastructure, climate and jobs proposals being considered by the White House that could collectively cost as much as $4 trillion, according to people familiar with discussions.

Biden advisers are weighing a price tag of between $3 trillion and $4 trillion for new legislative action, including repairing the country's crumbling infrastructure and tackling climate change, one source said.

A second source said Biden advisers have a package of proposals totaling up to $3 trillion for infrastructure and other priorities they are discussing with the president this week.

White House spokeswoman Jen Psaki said on Twitter on Monday that Biden would not unveil a proposal this week but that the "focus will be on jobs and making life better for Americans.

"He is considering a range of options, scopes and sizes of plans and will discuss with his policy team in days ahead, but speculation is premature," she added.

The price range does not include separate proposals to make child tax credits and other benefits to lower-income Americans in the latest stimulus act permanent, the second source said.

The New York Times reported earlier on Monday that Biden advisers were preparing to recommend he spend as much as $3 trillion on boosting the economy, reducing carbon emissions and narrowing economic inequality, beginning with a giant infrastructure plan.

The Washington Post and CNN reported that a $3 trillion effort was expected to be broken into two parts, one focused on infrastructure, and the other devoted to other domestic priorities, such as universal prekindergarten, national childcare and free community college tuition.

An administration official briefed on the matter confirmed that splitting the spending plan in two parts was likely.

Many questions remain about how to structure and pay for any infrastructure or climate change-related bill, and what Republicans in Congress might be willing to support.

REPUBLICANS SKEPTICAL

Biden used the Democrats' slender majority in the U.S. Senate to push through a $1.9 trillion pandemic relief bill earlier this month through a special process called reconciliation.

Democrats see infrastructure as one area where they might be able to attract support from Republicans because of the need to rebuild roads, bridges and airports across the country, but Republicans are already expressing skepticism.

"We’re hearing the next few months might bring a so-called 'infrastructure' proposal that may actually be a Trojan horse for massive tax hikes and other job-killing left-wing policies," Minority Leader Mitch McConnell said on the Senate floor on Monday.

Congress never voted on an infrastructure plan unveiled by the Trump administration in 2018 that proposed spending $200 billion over 10 years to spur $1.5 trillion in largely private-sector infrastructure spending.

House Republicans voted last week to lift a ban on earmarks, or funding for local projects that can serve as legislative "sweeteners," a potential boost to any Biden bill.

The Times said administration officials have considered financing the plan by reducing federal spending by as much as $700 billion over a decade, and raising the top marginal income tax rate to 39.6 percent from 37 percent.

© Reuters. FILE PHOTO: U.S. President Biden delivers status update on coronavirus vaccinations at the White House in Washington

Biden has pledged not to raise taxes on individuals making less than $400,000 a year.

Latest comments

with this amount of USD creation, it's going to cost 100USD for a Big Mac soon.
soon meaning how many decades?  the current inflation rate is like under 3%, and that's after the first 2 covid relief bills totalling $3T
China says debt is more important than united states growth and quality of infrastructure.
wake up people, the debt will never be repaid, those that think it will are foolish, the money printers won't stop until a great reset financial which is coming. the IMF already has a plan for this. the reset is another way to show how bad our government and the fed destroyed this country and it's economics to basically start over and wipe out debt on their balance sheet. they have no answer or solution but to just print more money. future taxation on all these stimulus checks. there's no such thing as free money. this administration will run the country further into debt and cause more damage than good.
Biden is going to run the usa into the ground...
ever since Nixon, the USD has not been tied to gold - and as such, it's lost an increasing amount of its value every year since 1971 - the military industrial complex behind all Administrations ensure they buy up all the assets and don't hold cash as it becomes worthless - it's known as the hollowing out of countries and businesses and it's been going on for decades - same in UK too. fiat money always goes to zero - that's the history of the world.
is that why he has a 60% job approval rating?
The US improving its infrastructure and quality for their people frightens China. Anericans already have better cars, homes, and living conditions. China doesnt want to compete with that as well as the work it creates.
GOD.... I THINKED THAT he fell on the stairs AGAIN...
god I thinked that your English skill is awesome
It's impossible to pay the current debt off
Im confused i thought giving 2 trillion tax break to the ultra wealthy was supposed to do that? Or what excuse do you have now after the 50th time it had failed only filling Elon Musks and Bezos bank accounts while tax payers subsidize them.
Dont worry, they’re not even going to try.
We still need another 4th stimulus. I am already waiting for my next $1,600 check in July....
who's gonna pay all those debts. the great depression 2 it's coming
hyperinflation just around the corner - gold, silver and bitcoin, land, cigars, booze, dope - hoard anything that has intrinsic value to others. USD will be used to start fires outside banks and police stations.
First 400000. Then 200000. Then 50000. Then everyone except those on the dole. Depression coming, thanks clumsy Joe.
Too Too Too Late.  John Maynard Keynes is rolling over in his grave.  It is like the Titanic Captain saying maybe we should buy more Life Rafts.  Yes it  could have helped.  This should have been the plan years ago.  In our current situation jobs are in transporting foreign made goods with the overlords not training workers to do anything.  Also they are watching every step a worker takes like a robot.  The workers can not complain because  they are too dispersed.  Read about the Putting Out System.  Resources are totally misallocated.  Small firms the real backbone of our country are bankrupt.  What will happen internationally when lenders decide they want their collateral. Some of you know what I am talking about. Research it!
Well said !!
The FED will pretty much be the only buyer of US treasuries - especially those beyond a year or so. Worthless pieces of paper. The Chinese will be wanting to sell theirs off pretty quickly - they're holding way too much, but interesting that they've been reducing their holdings for some years now, whilst hoarding more and more gold and BTC.
Love it. Over 400,000. That means the professional class will pay for it. The 1% do not have income they have investments.
Very very very bullish
You have lost at least 2 “very”
"premature" in this case is code for 4 trillion dollars
Lol - very clever. I like it!
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.