Democrats already are laying ground work to draft and vote on the package, whatever its ultimate shape. Speaker Nancy Pelosi set a July 4 deadline for House passage. That could allow the Senate to finish work on the bill in early August before the month-long congressional recess.
Crucial decisions will have to be made in the House about packaging and sequencing both the infrastructure proposal and another multi-trillion social-policy plan Biden intends to unveil in April. How that’s done will depend on how hard of a bargain Republicans drive for their cooperation on the parts of the plan they like, and how unified Democrats will be outside the pressure of the pandemic.
Earmarks Return
One part of Biden’s plan is most ripe for bipartisan support and could be broken off into a stand-alone bill. The surface transportation portion—roads, bridges and the like—could draw GOP support. It would need to, since it includes elements that aren’t eligible for the fast-track budget reconciliation procedure that allows legislation to pass the Senate with only Democratic votes.
In an effort to make deals, Democrats and Republicans in the House are reviving the use of earmarks, special projects in members’ districts that can be included in spending packages. House members can begin to formally file their local or other project proposal submissions on Thursday, each of which must be publicly posted.
The climate initiatives in Biden’s plan that are important to progressive Democrats won’t get much, if any, Republican support and don’t qualify for reconciliation.
But Missouri Representative Sam Graves, the top Republican on the House Transportation and Infrastructure Committee, revised a statement Wednesday in which he warned, “Republicans could not support an ‘infrastructure’ bill that is, in reality, a climate bill that does not focus on core transportation and infrastructure needs.”
In a subsequent, more conciliatory statement, he said that “our country desperately needs Congress to find common ground to make smart, responsible investments in our infrastructure” and Biden’s proposal is “just the beginning of the process.
“I hope the focus will be on proposals that can in fact gain bipartisan support,” he added.
Senator Shelley Moore Capito of West Virginia, the top Republican on the Senate Environment and Public Works Committee, was part of the February stimulus meeting with Biden and said last week she’ll “try” to work with Democrats. But she expressed skepticism about his infrastructure plan, suggesting it would cost her state coal jobs.
“President Biden’s so-called ‘jobs’ proposal is a clear attempt to transform the economy by advancing progressive priorities in an unprecedented way,” she said in a statement. “The proposal would aggressively drive down the use of traditional energy resources and eliminate good-paying jobs in West Virginia and across the country.”
She added that the corporate tax increases would “burden” the economy as it recovers from the pandemic.
Republican opposition to tax increases means that part of the Biden plan most likely will have to be put into a reconciliation bill, the same process used for Biden’s stimulus. The multi-step process of fashioning that bill has lawmakers predicting completion in September or October.
Senate Majority Leader Chuck Schumer is exploring whether Senate rules would allow him to push ahead with as many as three reconciliation bills this year and next.
The budget process will be arduous because of skepticism from moderate Democrats about tax increases and demands from progressives for a larger bill. Pelosi can only lose four votes in the House and a single Democratic defection can sink the bill in the 50-50 Senate if all Republicans oppose it.
Three northeastern Democrats in the House have already demanded an end to a cap imposed on state and local tax deductions in Trump’s 2017 tax law as the price for their vote.
The administration argues that what’s at stake is nothing less than America’s competitiveness with a surging China.
“This is the largest play I’ve seen in my economic career to onshore industries, to build up nascent industries, to grab global market share in areas where we could beat our competitors” Jared Bernstein, a member of the White House Council of Economic Advisers, said in a Bloomberg TV interview Thursday.
—With assistance from Jarrell Dillard.
This article was provided by Bloomberg News.