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Bipartisan $1 Trillion Infrastructure Package Gains Steam

Published by

July 25, 2024 2:51 PM
(GMT+2)

A growing bipartisan group of senators and the White House negotiated over how to finance around $1 trillion on an infrastructure proposal, awaiting feedback from President Biden as Democrats initiated discussions on a separate economic package that could cost up to $6 trillion.Since negotiations between Mr. Biden and a group of Senate Republicans collapsed last week, an alternative set of republican and Democratic senators have held talks on an infrastructure plan that would spend $973 billion over five years, with $579 billion of that funding above the expected baseline levels. Initially a group of five Democrats and five Republicans, the group expanded to include 11 Republicans and 10 members of the Democratic meeting on Wednesday.According to a draft outline of the proposal, the plan would dedicate $110 billion in new spending to bridges and roads, $65 billion to expanding access to broadband, and $48.5 billion to public transit, among other priorities. Extended over an eight-year timeline, the plan would spend a total of $1.2 trillion.The draft, first acquired by Politico, also includes a number of ways to finance the package, a central issue in the talks. It proposes indexing the gas tax to inflation, increasing IRS enforcement to collect unpaid taxes, collecting an annual cost from electric vehicles, and repurposing existing federal funds. An infrastructure financing authority, public-private partnerships, and direct-pay municipal bonds are also included as possible financing mechanisms.

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