The White House’s $ 1.7 million infrastructure offer meets Republican resistance

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The White House reduced the size of the infrastructure package proposed by Joe Biden from $ 2.25 million to $ 1.7 million on Friday, but the Republicans’ quick rejection of the counter-proposal called into question the possibility of a bipartisan deal.

White House press secretary Jen Psaki called the Biden administration’s latest proposal a “reasonable counter-offer” with “the spirit of finding a common ground.”

But Republicans quickly turned down the offer, saying “there will continue to be huge differences between White House and Senate Republicans in terms of defining infrastructure, the magnitude of the proposed spending and how to pay for it.” “.

Biden, who spent decades in the U.S. Senate before serving as Barack Obama’s vice president and campaigned for a history of coming to the political corridor, has repeatedly said he wants the bipartisan support of his ambitious infrastructure agenda.

Still, Friday’s events made it increasingly unlikely Biden and Democrats could make a deal with Republicans, who last month proposed a much smaller $ 568 billion plan and rejected Democratic proposals. per raise taxes to the richest corporations and Americans who pay the bill.

Biden administration officials held a conference call with a select group of Republican senators on Friday afternoon.

A spokesman for Shelley Moore Understood, the West Virginia Republican senator who has led Republican lawmakers in negotiations with the White House, said the administration’s latest counteroffer was “well above what Congress can approve with support bipartisan “.

“The groups appear more separated after two meetings with White House staff than after a meeting with President Biden,” the spokesman said, adding that Senate Republicans “will further review the details.” the last counter-offer and “will remain engaged” in talks with the administration.

A White House note obtained by the FT detailed the administration’s revisions to its initial $ 2.25 million proposal, including the elimination of investment in manufacturing and research and development, as well as the reduction in funding. proposed broadband investment at $ 65 billion.

According to the note, the president also reduced his proposal for additional funding for roads, bridges and major infrastructure projects from $ 159 billion to $ 120 billion. Republicans had initially proposed an additional $ 48 billion for these initiatives.

“This proposal shows his willingness to reduce its size, giving some areas that are important to the president, otherwise they would not have been in the proposal, while also standing firm in the areas that are most vital to rebuilding our infrastructure and industries of the future, “Psaki told White House reporters.

Democrats and Republicans have been divided for weeks over how to pay Biden’s big expenses.

The White House note said the president “does not fundamentally agree with the approach of increasing the burden on working people by raising gas taxes and user fees,” and that Biden “intends to accept” his “commitment” not to raise taxes to $ 400,000 a year.

“Major corporations are among the largest users of transportation infrastructure in our country,” the note said. “They also pay the lowest level of taxes as a share of our economy since the 1930s. Our approach should ensure that companies pay their fair share. “

Earlier Friday, Mitch McConnell, the top Republican in the Senate, vowed to obstruct any Democratic effort to raise taxes.

“This will slow the economy down to a crawl, and I think we have a chance to stop it… They’re pretty good,” he told Fox News. “Maybe they can get it, but I think it’s going to be very tough and we’ll fight them all the way.”

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