Senate Dems go it alone: Chuck Schumer and Bernie Sanders reach $3.5T infrastructure bill deal and greenlight reconciliation to bypass GOP filibuster despite fears it will fuel rampant inflation
Senate Democrats announced Tuesday that they have reached a budget agreement among themselves that envisions spending an enormous $3.5trillion over the coming decade.
The plan is far less than the $6trillion that Democrats initially wanted, but it did not have the support of moderate centrists in the caucus.
The $3.5trillion plan includes spending for climate change, health care and family-service programs sought by President Joe Biden. Democrats will seek to bypass a Republican filibuster by winning passage through budget reconciliation.
Reconciliation only requires a simple majority in the Senate. With the upper chamber at a 50-50 tie between Republicans and Democrats, Vice President Kamala Harris can cast the tie-breaking vote.
Senate Majority Leader Chuck Schumer, a Democrat from New York, announced the accord flanked by all 11 Democrats on the chamber's budget committee after a two-hour evening meeting that capped weeks of bargaining among party leaders, progressives and moderates.
Senate Majority Leader Chuck Schumer, a Democrat from New York, announced the accord flanked by all 11 Democrats on the chamber's budget committee after a two-hour evening meeting on Capitol Hill on Tuesday
'Tonight the Senate Budget Committee reached an agreement on a fully paid-for $3.5T topline budget which includes funding for climate, education, Medicare expansion, family programs, and more,' Senator Mark Warner tweeted on Tuesday
If congressional Democrats rally behind the proposal and turn it into a budget resolution they can push through Congress in coming weeks, it would help them enact a subsequent, sweeping bill that would actually fund their priorities.
Earlier on Tuesday, a bipartisan group of senators worked late into the night to shore up a $1trillion infrastructure compromise they struck with Biden even as momentum shifts to a more robust Democratic proposal that's coming into focus.
Biden's big infrastructure proposals are moving on parallel tracks in Congress in a race against time and political headwinds to make a once-in-a-generation investment in the nation.
Senators from both groups huddled privately again Tuesday evening.
The bipartisan deal appeared back on track, with senators upbeat as they aimed for a new Thursday deadline to wrap up the details despite opposition from business leaders, outside activists and some GOP senators over how to pay for it.
'Rolling, rolling, rolling,' said Senator Lisa Murkowski, a Republican from Alaska, as she exited a nearly three-hour meeting of the more than 20 senators involved in the effort.
A 'productive' meeting, said Senator Krysten Sinema of Arizona, a Democratic leader of the bipartisan effort.
As one meeting was wrapping up, another was being launched down the hall across from Schumer's office.
Schumer convened Democrats on the Budget Committee with White House officials to negotiate a topline framework for Biden's more expansive proposal. It could swell beyond $3.5trillion.
Biden is proposing a multitrillion-dollar package of investments, among the most substantial undertakings of its kind, some say on par with the New Deal in the 1930s.
From building back roads and bridges to investing in the everyday services Americans depend on like child care, elder care and broadband, the proposals reach all corners.
Underpinning the investments are efforts to combat climate change with energy efficiency and weather resiliency.
The $3.5trillion plan includes spending for climate change, health care and family-service programs sought by President Joe Biden (pictured in Washington on Tuesday)
The bipartisan effort was thrown into doubt earlier Tuesday when Republicans said it was unlikely it would be ready for a vote next week, as hoped.
But senators exiting the meeting suggested they hadn't so much resolved the questions over how to pay for the package but moved past them - apparently accepting that some of the proposed revenue streams may not pass muster in formal assessments by the Congressional Budget Office, the lawmakers' main fiscal scorekeeper.
Senator Joe Manchin, a Democrat from West Virginia, said he hoped that CBO's score, as it is called, would show that 'everything's paid for. If not, we´ll have to make some adjustments.'
Even if the bipartisan group can meet its new deadline for agreement, it's still a longshot the bill would be ready for a vote next week.
'We hope to get most issues resolved by Thursday, but there will surely be others after that,' said Senator Mitt Romney, a Republican from Utah.
Paying for the new infrastructure was always going to be a challenge, which is partly why public works investments have lagged over time.
Biden has proposed raising taxes on corporations and wealthy Americans earning more than $400,000 a year, which would cover not only the nearly $1trillion proposal, but also the broader Democratic plan.
Republicans reject that approach.
Instead, the bipartisan group of senators racing to salvage its plan strained to come up with other revenue streams to fund the $1trillion package, which includes about $579billion in new spending beyond regular expenditures that are funded by gas taxes and other sources.
One proposal to go after taxpayers who skip out on income taxes initially had potential bipartisan appeal, but now is being lambasted by the outside groups as a way to enable the IRS to snoop around Americans' personal finances.
It would boost the IRS by $40billion to bolster staff to audit tax returns, unleashing as much as a $100billion net increase in revenues to federal coffers.
Senator Kevin Cramer, a Republican from North Dakota, said funding the IRS to audit potential tax scofflaws 'is just way too undefined and nebulous and frankly eerie-sounding to most Republicans to be serious, in my view.'
Another proposal calls for reinstating fees that chemical companies used to pay for cleaning up the nation's worst hazardous waste sites, which could bring in about $13billion over 10 years.
Those fees were allowed to expire in 1995, and the cleanup efforts are funded by general revenues.
Biden has called for restoring the fees 'so that polluting industries help fairly cover the cost of cleanups.'
But the American Chemistry Council called on lawmakers to remove the fees, saying they would likely be paid by consumers in the form of higher costs.
Schumer is seen above speaking to reporters in Washington on Tuesday
Money could come from $125billion in COVID-19 relief funds approved in 2020 but not yet spent, as well as untapped unemployment insurance funds, among a hodgepodge of other sources.
Ed Mortimer of the US Chamber of Commerce said some of the group's members have concerns about some revenue sources in the bipartisan framework, but he added, 'This is an investment we believe is worth making.'
Senate Minority Leader Mitch McConnell, a Republican from Kentucky, said he remained hopeful the bipartisan effort could proceed.
But his earlier insistence that it 'ought to be credibly paid for' signaled the party´s stance.
Ten Republican senators would be needed to back the bipartisan bill, joining with all 50 Democrats to reach the 60-vote threshold typically required to overcome a filibuster and advance it toward passage.
Meanwhile, the broader Democratic framework being compiled by independent Sen. Bernie Sanders and senators on the Senate Budget Committee he chairs is gaining momentum.
Behind closed doors Tuesday, Sanders made the case for why Democrats should go big.
According to a person who spoke on condition of anonymity to discuss the private lunch meeting, Sanders encouraged his colleagues to focus primarily on the needs of America's working people and the climate crisis, rather than a topline budget number.
Sanders met with Biden at the White House on Monday and said they are on the same page in seeking a 'transformative' investment for the nation.
Once rivals for the White House, Sanders and Biden are now joining forces to shape the president´s top priority.
'My job is to do everything I can to see that the Senate comes forward with the strongest possible legislation to protect the needs of the working families of this country,' Sanders said.
'The end of the day, we're going to accomplish something very significant,' he said.
The emerging package would include funds to build child care centers and help families pay for that care, and expanded health care options for older Americans including eye, dental and vision benefits.
Public works would be bolstered to remove lead in drinking water pipes, enhance electric vehicle markets and fight climate change.
Under budget rules, Democrats could pass the proposal on their own in the evenly split Senate, without the 60 votes typically required.
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