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.
-
4 ways to give back this holiday season
The Explainer If your budget is feeling squeezed, remember that money is not the only way you can be generous around the holidays
By Becca Stanek, The Week US Published
-
4 tips for hosting an ecofriendly Thanksgiving
The Week Recommends Coming together for the holidays typically produces a ton of waste, but with proper preparation, you can have an environmentally friendly gathering.
By Theara Coleman, The Week US Published
-
Jussie Smollet conviction overturned on appeal
Speed Read The Illinois Supreme Court overturned the actor's conviction on charges of staging a racist and homophobic attack against himself in 2019
By Peter Weber, The Week US Published
-
Has the Taliban banned women from speaking?
Today's Big Question 'Rambling' message about 'bizarre' restriction joins series of recent decrees that amount to silencing of Afghanistan's women
By Harriet Marsden, The Week UK Published
-
Cuba's energy crisis
The Explainer Already beset by a host of issues, the island nation is struggling with nationwide blackouts
By Rebekah Evans, The Week UK Published
-
Putin's fixation with shamans
Under the Radar Secretive Russian leader, said to be fascinated with occult and pagan rituals, allegedly asked for blessing over nuclear weapons
By Harriet Marsden, The Week UK Published
-
A brief history of third parties in the US
In Depth Though none of America's third parties have won a presidential election, they have nonetheless had a large impact on the country's politics
By Joel Mathis, The Week US Last updated
-
Chimpanzees are dying of human diseases
Under the radar Great apes are vulnerable to human pathogens thanks to genetic similarity, increased contact and no immunity
By Harriet Marsden, The Week UK Published
-
Deaths of Jesse Baird and Luke Davies hang over Sydney's Mardi Gras
The Explainer Police officer, the former partner of TV presenter victim, charged with two counts of murder after turning himself in
By Austin Chen, The Week UK Published
-
Quiz of The Week: 24 February - 1 March
Puzzles and Quizzes Have you been paying attention to The Week's news?
By Sorcha Bradley, The Week UK Published
-
Will mounting discontent affect Iran election?
Today's Big Question Low turnout is expected in poll seen as crucial test for Tehran's leadership
By Sorcha Bradley, The Week UK Published