US President Joe Biden has reached an agreement on an infrastructure package worth about $1 trillion, which will spend billions of dollars in upgrading roads, bridges and broadband networks over the next eight years.

The agreement and Bipartisan group of senators It is lower than Biden’s $2.3 trillion infrastructure spending plan announced in March, and it did not address the $1.8 trillion social safety net spending issue proposed by the US President in April.

But it represents a Biden’s important milestone, He vowed to use his decades of experience as a senator in Delaware to work with Republicans to oppose the polarization that prevails in American politics.

Biden announced the agreement after meeting with compromised moderate senators at the White House on Thursday, which included Kirsten Cinema, Arizona Democrat and Republican Senator Susan Collins from Maine.

The president said: “We made serious compromises at both ends,” adding that it reminded him of “the days when we did a lot of things in Congress.”

The Democrats and the White House hope to use their small majority in Congress to pass the bipartisan infrastructure bill negotiated with the Republicans to approve the rest of the economic agenda.

But House Democratic Speaker Nancy Pelosi said on Thursday that legislation must be linked: If Biden’s broader economic priorities-including tax increases for companies and the rich-will be considered first, the House of Commons will only Consider a bipartisan infrastructure plan. Pass the Senate.

For many years, Biden has regarded the Infrastructure Act as the key to correcting the long-term underfunding of the US transportation network and other facilities, and Put America in a better position Compete with China in the 21st century.

“The dictator is making a lot of investment,” he said in a speech at the White House in the late afternoon. “We must move, we must move fast.”

Even during Donald Trump’s presidency, large-scale infrastructure agreements have been the goals of Republicans and Democrats, but they have been difficult to achieve. Biden said that he has been very flexible in negotiations and is unlikely to make further requests.

“They have my word, I will stick to their proposal. They also gave me their word. Where I come from, this is enough for me,” Biden said.

Some members of the bipartisan group celebrated the agreement. “This is Infrastructure Week!” Republican Senator Bill Cassidy from Louisiana wrote on Twitter.

If Congress passes the infrastructure agreement, it will follow Biden’s $1.9 trillion stimulus bill, The plan was approved in March as an emergency measure to promote the country’s recovery from the pandemic.

The White House stated that the proposed transaction involves new expenditures of US$579 billion; together with the renewal of existing infrastructure funds, the total amount will reach US$973 billion in the next five years, and the total amount will reach US$1.2 trillion in the next eight years.

The new spending will include US$109 billion for roads and bridges, US$66 billion for the railway network, and US$49 billion for public transportation. Ports, airports and electric vehicle charging stations will also receive additional funding.

The biggest source of tension in the infrastructure package has to do with disagreements over how to increase revenue without increasing the deficit.

Finally, the bipartisan organization agreed to use previous rounds of pandemic-related stimulus measures, the IRS’s improved ability to enforce tax laws, and unspent funds from the sale of strategic oil reserves to cover costs.

Republicans had proposed increasing federal gasoline taxes and user fees for electric vehicles to pay for the plan, but the White House rejected the idea because it violated Biden’s proposal not to increase taxes on Americans with an annual income of less than $400,000. committed to.

Swamp notes

Rana Foroohar and Edward Luce discuss the biggest theme at the intersection of money and power in American politics every Monday and Friday.Newsletter subscription Here

Source link