GOP readies $1 trillion infrastructure counteroffer, but most of it apparently comes from COVID-19 funds


Sen. Joe Manchin (D-W.Va.) seems to be the only person in Washington who's optimistic about the prospects for an infrastructure deal. President Biden has offered to lower his American Jobs Plan's proposed price tag to $1.7 trillion, from $2.3 trillion, while Senate Republicans have raised their counteroffer to about $800 billion, from $568 billion, though that's mostly from extending the life of the proposal to eight years, from five.
Now, the Republicans, led by Sen. Shelley Moore Capito (R-W.Va.), have signaled they are ready to come back to the table Thursday with an eight-year offer totaling about $1 trillion, but about 70 percent of that money would come from COVID-19 relief funds that have yet to be spent. No Republicans voted for the last $1.9 trillion COVID-19 relief legislation. Democrats are unlikely to embrace paying for upgrading America's infrastructure by siphoning off coronavirus relief funds, much of which have been promised to states and local governments.
"My view is that we gave that to the cities and states and counties with the understanding that it may take a little time for them to spend it," Sen. Chris Van Hollen (D-Md.), a longtime congressional budget expert, told The Associated Press. "I think it'd be a big mistake to try to claw that back."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Democrats and Republicans are also in disagreement about the scope of the bill — Republicans insist it only cover physical infrastructure and broadband, while Biden has held firm on funding renewable energy infrastructure and care for children and the elderly. Democrats also want to pay for the play by raising the corporate tax rate to 28 percent, from 21 percent, a nonstarter for many Republicans, who consider their 2017 tax overhaul sacrosanct. And the GOP plan to raise funds through user fees and upping the gas tax would violate Biden's pledge not to raise taxes on Americans earning less than $400,000.
"The West Wing believes its bargaining position is strong," AP reports. "Aides point to Biden's high poll numbers and the popularity of his proposals, all while believing that they have the option of muscling the infrastructure plan to passage under special budget reconciliation rules that require only a party-line vote." But that party-line vote would require Manchin, who is currently working on a bipartisan "backup" plan with Sen. Mitt Romney (R-Utah) and a handful of other Republicans and Democrats.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
What does 'conquering' Gaza mean to Israel?
Today's Big Question Benjamin Netanyahu's cabinet has approved a plan to displace much of the Palestinian population while seizing and occupying the territory on a long-term basis.
-
Casey Means: the controversial 'wellness influencer' nominated for surgeon general
In the Spotlight Means has drawn controversy for her closeness to RFK Jr.
-
Trump taps Fox News' Pirro for DC attorney post
speed read The president has named Fox News host Jeanine Pirro to be the top federal prosecutor for Washington, replacing acting US Attorney Ed Martin
-
India strikes Pakistan as tensions mount in Kashmir
speed read Pakistan's Prime Minister Shehbaz Sharif called it an 'act of war'
-
Israel approves plan to take over Gaza indefinitely
speed read Benjamin Netanyahu says the country is 'on the eve of a forceful entry'
-
Putin talks nukes as Kyiv slated for US air defenses
speed read 'I hope they will not be required,' Putin said of nuclear weapons on Russian state TV
-
US, Ukraine sign joint minerals deal
speed read The Trump administration signed a deal with Ukraine giving the US access to its mineral wealth
-
What happens if tensions between India and Pakistan boil over?
TODAY'S BIG QUESTION As the two nuclear-armed neighbors rattle their sabers in the wake of a terrorist attack on the contested Kashmir region, experts worry that the worst might be yet to come
-
Israel launches air strike on Beirut suburbs
Speed Read The attack targeting Hezbollah was Israel's third on the Lebanese capital since November's ceasefire
-
Dozens dead in Kashmir as terrorists target tourists
Speed Read Visitors were taking pictures and riding ponies in a popular mountain town when assailants open fired, killing at least 26
-
Israel blames 'failures' for killing of medics
speed read 14 Gaza medics and 1 U.N. employee were killed by IDF special forces