WASHINGTON — Fresh off passage of the COVID-19 relief bill, President Joe Biden is assembling the next big White House priority, a sweeping $3 trillion package of investments on infrastructure and domestic needs.
Biden huddled privately late Monday with Senate Democrats as Congress has already begun laying the groundwork with legislation for developing roads, hospitals and green energy systems as part of Biden’s “Build Back Better” campaign promise. Much like the $1.9 trillion virus rescue plan signed into law earlier this month, the new package would also include family-friendly policies, this time focusing on education and paid family leave.
President Joe Biden set to propose $3 trillion package for infrastructure, schools, families
The White House plans are still preliminary, with a combined $3 trillion in spending proposed to boost the economy and improve quality of life, according to a person familiar with the options who insisted on anonymity to discuss private conversations.
While the goal is a bipartisan package, Democrats in Congress have signaled a willingness to go it alone if they are blocked by Republicans.
“We need to get it done,” said Sen. Richard Blumenthal, D-Conn., ahead of the virtual meeting with Biden at the senators’ annual retreat Monday evening.
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Biden’s outreach to Senate Democrats comes as the White House is under fire for its handling of the U.S.-Mexico border. Migrant crossings are skyrocketing, with images of cramped holding facilities posing a humanitarian and political dilemma for the administration and its allies in Congress. The focus on infrastructure shifts attention back toward priorities that are potentially more popular with Americans and potentially bipartisan.
An infrastructure package would include roughly $1 trillion for roads, bridges, rail lines, electrical vehicle charging stations and the cellular network, among other items. The goal would be to facilitate the shift to cleaner energy while improving economic competitiveness.
A second component would include investments in workers with free community college, universal pre-kindergarten and paid family leave.
No part of the proposal has been finalized and the eventual details of any spending could change.
The overall price tag first reported Monday by The New York Times has been circulating on Capitol Hill for weeks, since the start of the Biden presidency. With the House and Senate under Democratic control, the proposals are expected to draw support from all corners of Congress.
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House Speaker Nancy Pelosi asked Democratic committee chairmen earlier this month to start working with their Republican counterparts to begin “to craft a big, bold and transformational infrastructure package.”
Pelosi said the goal is to build swiftly on the coronavirus rescue plan by developing an economic relief plan to help “people in every zip code by creating good-paying jobs for the future.”
The administration is positioning its priorities at a politically and fiscally sensitive time, after funding its $1.9 trillion relief package entirely with debt. The Federal Reserve estimates that spending could push growth this year to 6.5%, and additional spending would only add pressure to an economy already expected to run hot.
Biden’s campaign proposed higher corporate taxes and increases on people making more than $400,000 annually, effectively undoing much of the 2017 tax cuts by his predecessor, Donald Trump.
A White House official said the president has been very clear about his agenda, even though the details are only just starting to surface. The official insisted on anonymity to discuss private conversations.
On Monday, the House Energy and Commerce Committee debated a $300 billion-plus measure to invest in drinking water, broadband and other priorities. On Thursday, Transportation Secretary Pete Buttigieg is set to appear before the Transportation and Infrastructure Committee. Next week, the Senate Finance Committee is scheduled to release a white paper revisiting the overseas tax code as a way to pay for some of the spending.
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Republican leader Mitch McConnell used his opening remarks Monday in the Senate to trash the infrastructure proposal, warning it would only lead to tax hikes and what he called “left-wing policies.”
“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,” he said.
He derided the Democratic proposals as similar to the Green New Deal, a sweeping plan to address climate change that he said would cost “unbelievable sums.”
Biden is expected to roll out his budget in the weeks ahead as Congress presses forward on the infrastructure package, which lawmakers have said could be ready by summer.
President Joe Biden’s economic advisors are expected to present a proposal that includes up to $3 trillion in new spending aimed at boosting the economy and fighting climate change through separate legislative pieces instead of a single colossal bill.
A person familiar with the discussions confirmed them to Insider. They were granted anonymity to reveal internal deliberations.
The New York Times first reported the emerging shape of the plan. It would be aimed at narrowing economic inequality, reduce carbon emissions, and improve American manufacturing, beginning with an infrastructure bill.
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The Times cited documents outlining that the proposed package would spend heavily on infrastructure improvements, with nearly $1 trillion in spending alone for roads, bridges, electric vehicles, and more.
The second part of the infrastructure push would be people-focused and spend heavily on education and programs to increase the participation of women in the labor force, including free community college, universal pre-K education, and a national paid leave program. Those elements are targeted at encouraging workers to re-enter the labor force and accelerate the economic recovery.
Many of the plan’s details appear to remain highly in flux. “President Biden and his team are considering a range of potential options for how to invest in working families and reform our tax code so it rewards work, not wealth,” White House press secretary Jen Psaki said in a statement. “Those conversations are ongoing, so any speculation about future economic proposals is premature and not a reflection of the White House’s thinking.”
Administration officials say while funding methods are not yet determined, it might be partially paid for with tax increases on the wealthiest Americans. Biden has already indicated that he would include a federal tax hike on high earners in his next big economic package, which would be the biggest tax increase in nearly three decades.
Insider’s Juliana Kaplan reported Monday that Biden is likely to look at tweaks to the current tax code, instead of a new tax targeting wealth.
But whether Republicans will support one big bill, or a series of legislative pieces, depends largely on funding, and Republican lawmakers have already indicated they will not support a tax hike on the rich.
“I don’t think there’s going to be any enthusiasm on our side for a tax increase,” Senate Minority Leader Mitch McConnell told reporters last week. The Republican opposition to tax increases could prompt Democrats to bypass the GOP using reconciliation, the same tactic used to enact the $1.9 trillion stimulus law, but passing it more piecemeal could win bipartisan approval for certain aspects of the spending.
Groups of lawmakers from both parties have already met with Biden to discuss an upcoming infrastructure bill.
Democrats, like Rep. Peter DeFazio, the chair of the House Transportation and Infrastructure Committee, suggested using reconciliation in a CNBC interview to pass the next bill, but Rep. Sam Graves, ranking member of the House infrastructure panel, said in a statement that it “cannot be a ‘my way or the highway’ approach like last Congress.”
Moderate Democratic Sen. Joe Manchin said in an “Axios on HBO” interview that an infrastructure bill could be as large as $4 trillion if it’s funded by tax hikes but that he would not support reconciliation.
