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WASHINGTON: The administration of President Joe Biden is considering spending $ 3 trillion on infrastructure in the United States, split into two bills that face narrow paths for passage in Congress, US media reported Monday (March 22).
The infrastructure plan would follow the US $ 1.9 trillion American Rescue Plan that Biden signed the previous month, which was aimed at helping the world’s largest economy recover from the damage caused by the COVID-19 pandemic.
Biden, who took office in January, promised to pass a second bill aimed at improving infrastructure in the United States and creating jobs, and the US media reported that it would likely be split into two proposals with a total cost of $ 3 trillion. .
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According to Reuters, a source said that Biden’s advisers have a package of proposals totaling up to $ 3 trillion for infrastructure and other priorities that they are discussing with the president this week.
The New York Times reported earlier Monday that Biden’s advisers were preparing to recommend that he spend up to $ 3 trillion on boosting the economy, reducing carbon emissions and reducing economic inequality, starting with a giant infrastructure plan.
Meanwhile, The Washington Post and CNN reported that a $ 3 trillion effort was expected to be split into two parts, one focused on infrastructure and the other dedicated to other national priorities, such as universal pre-kindergarten, childcare. national and free community college. enrollment.
“We will use taxpayer dollars to rebuild America. We will buy American products, supporting millions of American manufacturing jobs, enhancing our competitive strength in an increasingly competitive world,” Biden said in the January speech announcing the two. plans.
However, any new measure could face difficulties in Congress, where Democrats have a small margin in the House and are evenly divided with Republicans in the Senate, forcing them to use a special parliamentary maneuver to pass the Plan of American rescue without the support of the opposition.
White House press secretary Jen Psaki questioned the reports, saying that “President Biden and his team are considering a variety of potential options on how to invest in working families and reform our tax code to reward work, not the wealth”.
“Those talks are ongoing, so any speculation about future economic proposals is premature and not a reflection of the White House’s thinking,” he said.
DOUBLE PROPOSALS
Citing people familiar with the proposals, the US media said the new measure would be divided into two parts, the first aimed at improving infrastructure, including a $ 400 billion investment to combat climate change.
It would also include US $ 200 billion for housing infrastructure, US $ 100 billion for low-income households, and US $ 60 billion for green transportation networks.
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The second proposal would focus on the workforce and pay for free community college, preschool education, and paid leave.
It would also expand tax credits aimed at fighting child poverty and helping Americans pay for health insurance, according to reports.
The American Rescue Plan, along with the $ 2.2 trillion CARES Act passed in March 2020 and a $ 900 billion measure passed in December, have been credited with helping the U.S. economy avoid a worse recession afterward. that the pandemic led to mass layoffs and business closures across the country.
However, the costly proposals have wreaked havoc on national finances, sending the budget deficit to $ 3.1 trillion in 2020, a record high, which the Congressional Budget office predicts that the national debt will exceed GDP this year.
It’s unclear how Biden would pay for these plans, but the report said he could consider tax increases for corporations or higher-income individuals, proposals that Republicans may reject.
