Infrastructure Update: June 11, 2021

Welcome to the BGR Group Infrastructure Update. In this first edition, we provide a state of play on negotiations and a snapshot of proposals/priorities for the administration, Congressional Republicans and Congressional Democrats, as well as potential pay-fors. This update will be provided weekly.

KEY TAKEAWAYS:

Talks between President Joe Biden and Sen. Shelly Moore Capito (R-WV) ended this week after it became clear the two sides were too far apart on the fundamentals to find an agreement. However, President Biden is now turning to a bipartisan group of lawmakers to try again. The bipartisan group of Senators continue to negotiate on infrastructure, but these discussions do not entail taxes. Republican Senators have stated that they will not support any deal that includes tax increases. This comes as the G7 countries have agreed to a 15 percent global minimum tax and Treasury Secretary Janet Yellen continues to push for increased taxes on the top income earners, corporations, and IRS enforcement funding.
A group of five Republican and five Democratic Senators say they have worked in “good faith” to reach a bipartisan agreement on a framework to modernize infrastructure and energy technologies. The group includes Senator Bill Cassidy (R-LA), Susan Collins (R-ME), Joe Manchin (D-WV), Lisa Murkowski (R-AK), Rob Portman (R-OH), Mitt Romney (R-UT), Jeanne Shaheen (D-NH), Kyrsten Sinema (D-AZ), Jon Tester (D-MT), and Mark Warner (D-VA). It’s focused on traditional physical infrastructure.
According to news reports, the compromise includes no tax increases. It includes $579 billion in new spending above the baseline and costs $974 billion over five years. It is $1.2 trillion when extrapolating out over eight years like the Biden administration prefers.
Lawmakers floated indexing the gas tax to inflation as a pay-for, but this was quickly rejected by the White House. Instead, the package could be financed by tapping unused COVID relief funds, public private partnerships, and an “infrastructure bank” where states could borrow money needed for projects.
The House Transportation and Infrastructure (T&I) Committee passed a surface transportation bill put forward by Committee Chair Peter DeFazio (D-OR). After a 19-hour markup session, the Committee passed the bill by a mostly party-line vote of 38 to 26. The five-year, $547 billion surface transportation reauthorization bill would direct federal investments in roads, bridges, transit, and rail.

Democrats are still considering the path forward after the Senate parliamentarian ruled that the Senate can only consider one more budget reconciliation bill this year. Senate Democrats had assumed they would have multiple opportunities to move Biden’s domestic agenda through this expedited process which would not require Republican support.
Considering an impending list of deadlines unrelated to infrastructure but critical to government operations, there will be several competing priorities for lawmakers this summer. The timeframe for passage is, at best, in the Fall. As the Senate bipartisan group continues to negotiate, the Senate and the House are likely to have differences in their packages. This will lead call for a conference for the chambers to mend differences. Also, if a bipartisan agreement is not reached, pending a budget resolution, reconciliation will be an option for Democrats to utilize until September 2022.

BIDEN ADMINISTRATION PROPOSALS

President Biden has made passing an infrastructure package a key priority for his administration. So far, he has introduced two major pieces to that infrastructure initiative: the American Jobs Plan and the American Families Plan.

The American Jobs Plan calls for more than $2 trillion to focus on more traditional infrastructure, such as roads, bridges, airports, and broadband, but also expands that definition to include “care” infrastructure like long-term care supports for the elderly and disabled. The American Families Plan includes $1 trillion in spending on things not traditionally thought of as infrastructure, but priorities the administration believes are relevant nonetheless like funding for universal pre-K, enhanced childcare services, free community college, and a national paid family and medical leave program. The administration claims that both pieces can be paid for by major changes to the tax code, some of which can be found in the Made in America Tax Plan, including raising the corporate tax rate to 28 percent from the current 21 percent, a global minimum tax on corporations, and increased tax enforcement on corporations.

President Biden had engaged with a small group of Senate Republicans in trying to reach a bipartisan agreement on a broad infrastructure package. However, this week that effort ended as the two sides remained too far apart. The President will now focus on working with a bipartisan group of 20 Senators. The White House said earlier this week the President met with Sens. Joe Manchin (D-WV), Kyrsten Sinema (D-AZ), and Bill Cassidy (R LA) and “urged them to continue their work with other Democrats and Republicans to develop a bipartisan proposal that [President Biden] hopes will be more responsive to the country’s pressing infrastructure needs.” President Biden also spoke with Senate Majority Leader Chuck Schumer (D-NY) about getting started on the budget resolution process – a necessary step on using reconciliation to pass infrastructure legislation with only Democratic support.

The discussions around a larger infrastructure package are only one piece to the infrastructure puzzle, with another being the Surface Transportation Reauthorization Act, which expires on September 30th. The current version provides about $45 billion annually for the country’s highway system and around $12 billion for public transit via the Highway Trust Fund, which is funded through gas taxes. The revenue collected by those taxes has not been enough to fully pay for the program for many years. The Biden administration has indicated that they are not necessarily supportive of a gas tax increase and have floated the idea of a vehicle-miles-traveled (VMT) tax instead. This controversial proposal lacks support in Congress.

The administration has not publicly commented on the separate pieces of surface transportation reauthorization legislation that are working their way through the Committee process in both chambers of Congress, but it is expected that they would support whatever form a final bill might take (whether bipartisan or moved with Democratic support).

Additionally, there is the American Rescue Plan, which passed Congress in March and was signed into law by President Biden on March 11, 2021. Although the legislation was targeted for COVID relief, there was limited funding for infrastructure included in the package. Per the legislation’s guidance, Treasury launched the Coronavirus State and Local Fiscal Recovery Funds, which provides $350 billion in emergency funding for state, local, territorial, and tribal governments. This funding could potentially be used for infrastructure related projects. Further, Treasury released guidance detailing how the funds could be utilized to support communities hardest hit by COVID-19. Those eligible entities have been able to access funding directly from the Treasury Department. This funding could be used for purposes of infrastructure as the various entities deem fit. Also, the package provided states, local governments, territories, and tribal governments with $10 billion under a new Critical Infrastructure Projects program that allows the governments to carry out projects such as for broadband, $27 billion for emergency public transit funding, $1.7 billion to Amtrak for employee payrolls, and $20 billion to tribal governments for PPE, broadband, clean water, and electricity.

CONGRESSIONAL REPUBLICAN PROPOSAL

Congressional Republicans have roundly rejected the full scope and price tag of President Biden’s infrastructure proposals outlined in the American Jobs and Families Plan. They believe these proposals, particularly the American Families Plan, do not reflect traditional infrastructure priorities and are simply a Democratic wish list. For weeks, Sen. Shelly Moore Capito (R-WV), Ranking Member on the Senate EPW Committee, took the lead role in negotiating a bipartisan deal with President Biden on behalf of Senate Republicans. However, those talks officially ended after the two sides were unable to come to an agreement on fundamental aspects of the legislation, namely the pay-fors and the size and scope of the bill. Before ending the negotiations, the most recent counteroffer put forward by Republicans was a $928 billion infrastructure package that included $506 billion for roads, bridges, and major projects, and $98 billion for public transit systems. That offer was substantially more than the $568 billion infrastructure framework originally introduced in April but was still far short of the previous $1.7 trillion counteroffer that White House officials came back with. The Republican counteroffer remains much closer to “traditional” infrastructure but does include funding for water and broadband infrastructure: $72 billion and $65 billion, respectively. Republicans refused to consider tax increases to pay for the bill, calling it their red-line, and instead wanted to mainly repurpose already existing funding.

Even though the package has been rejected by the White House, it provides a useful guide to where a bipartisan agreement may end up.

CONGRESSIONAL DEMOCRATS – INVEST IN AMERICA ACT

Congressional Democrats generally support President Biden’s more ambitious infrastructure proposals. They want him to go big, with the more progressive wing of the party urging the President not to trim his wish list in order to achieve a deal with Republicans. Some more moderate Democrats are willing to negotiate. The reality is that the President will face a challenge in managing Democratic expectations if he continues to pursue compromise legislation. While there have been some “four-corner” discussions between President Biden and Congressional leaders in both parties, the majority of the negotiations now seems to be between the administration and a bipartisan group of 20 Senators. Reports indicate that those Senators, including at least five Democrats and a handful more Republicans, are moving forward without any of the tax hikes the President has previously demanded to pay for the plan.

Regarding surface transportation, Democrats in the House Transportation & Infrastructure Committee have introduced the INVEST in America Act. The $547 billion surface transportation reauthorization bill was marked up on June 9th and approved primarily along party lines with a 38-26 vote, with only Reps. Brian Fitzpatrick (R PA) and Jennifer Gonzalez-Colon (R-PR) crossing party lines. Members of the committee submitted hundreds of amendments, several of which were incorporated into a manager’s amendment that passed by voice vote at the beginning of the hearing. Most of the Democratic amendments were withdrawn, with promises from Chairman Peter DeFazio (D-OR) to work later on with each Democratic member who had offered one, and, with very few exceptions, all Republican amendments were opposed by the chair and either voted down or withdrawn.

In late May, the Senate Environment and Public Works (EPW) Committee unanimously passed its own version of a five-year plan authorizing the Surface Transportation Reauthorization Bill. This bipartisan achievement was hailed by Republicans as a possible roadmap for negotiations over the larger infrastructure package which should, they insist, be limited to “traditional” infrastructure projects that similarly enjoy bipartisan support. It also offered new momentum for the other committees of jurisdiction to begin marking up their bills.

The Surface Transportation Reauthorization Act of 2021 boosts total highway funding from fiscal years 2022 to 2026 by 34 percent over the baseline established by the one-year extension of the Fixing America’s Surface Transportation, or FAST Act, passed in October 2020. The EPW’s bill also provides $273.2 billion, or 90 percent of its total funding, via formula apportionments to states and retains all current core formula programs, including a 55 percent suballocation for Surface Transportation Block Grant programs. It also establishes a National Motor Vehicle Per-Mile User Fee Pilot Program. Full text of the Surface Transportation Reauthorization Act can be found here. Additional materials include a one pager and tables for apportionments and authorizations. The EPW Committee is only one of four Senate committees of jurisdiction over surface transportation legislation. The Senate Banking, Commerce, and Finance committees all have titles to draft and mark up before the comprehensive bill can reach the Senate floor.

PAY-FORS

As mentioned through the above topics, revenue proposals differ between parties and the scope of the bills being considered. The administration’s plans call for tax changes to pay for trillion-plus price tags. That is a non starter for Republicans. As recently as this week, a bipartisan group of Senators negotiating on infrastructure said that tax increases are off the table. Senators Rob Portman (R-OH) and Mitt Romney (R-UT) have publicly expressed such notions. There may be a thaw on this front, however. It was reported this week that President Biden has proposed a minimum corporate tax rate rather than an increase. This is seen as a major concession to Republicans and an indication that the President really does want to keep pushing for a bipartisan bill. Additionally, the G7 countries recently came to an agreement to hold the global minimum tax at a 15 percent rate. Of course, each nation’s government will have to separately agree and implement the agreed upon rate, and there is no guarantee that the United States Congress will agree. Currently, no signs point to any Republican supporting this rate, and even some Democrats will have their concerns with a 15 percent rate. The most recent payfor being considered by the bipartisan group of 20 Senators, including Senators Romney, Portman, Jon Tester (D-MT), and Kyrsten Sinema (D-AZ), is gas tax indexing to inflation. This would be considered a tax increase. However, the White House immediately stated it would oppose any such attempts.

Republicans plan to pay for the vast majority of their counteroffer by repurposing funds Congress has already approved for other projects – primarily unspent money meant for COVID-19 relief. White House officials have said they were concerned about the proposal to use COVID-19 relief funding to pay for the plan.

The recently-passed Senate proposal for surface reauthorization seems to rely on gas tax and general revenue assumptions (similar to how it has been funded in the past); however, it will be up to the Senate Finance Committee to make a final decision.

The Biden administration has released several proposals that highlight exactly how they envision offsetting costs. President Biden and Treasury Secretary Yellen have repeatedly stated the administration’s goal for infrastructure spending to be net neutral. The administration has broken up their infrastructure plans into the American Jobs Plan and American Families Plan, which each include separate changes to the tax system. The plans are aimed at increasing taxes on the top earners and corporations by increasing the corporate rate, closing loopholes, cutting foreign investment incentives, agreeing to a global minimum tax with the G7 countries, supporting new domestic investments, and targeting climate-related taxes and incentives. Globally, the Biden administration wants to reverse course on the “race to the bottom” and the previous administration’s changes to GILTI, BEAT, and FDII. Domestically, the Biden administration aims to have the top income earners and corporations “pay their fair share” of taxes and to provide more tax credits and incentives for working families. Also, the administration is looking to increase funding for IRS audit and enforcement authorities. There has been a push by the White House, Treasury, the IRS, and others to provide the IRS with increased tools to examine tax evasion, especially given the increased reporting that the top earners have paid lower sums in taxes compared to other earners. The proposed tax increases from both proposals include:

AMERICAN JOBS PLAN

Reform Corporate Taxation

Raise the Corporate Income Tax Rate to 28 Percent
Revise the Global Minimum Tax Regime, Disallow Deductions Attributable to Exempt Income, and Limit Inversions
Reform Taxation of Foreign Fossil Fuel Income
Repeal the Deduction for Foreign-Derived Intangible Income (FDII)
Replace the Base Erosion Anti-Abuse Tax (BEAT) with the Stopping Harmful Inversions and Ending Low-Tax Developments (SHIELD) Rule
Limit Foreign Tax Credits from Sales of Hybrid Entities
Restrict Deductions of Excessive Interest of Members of Financial Reporting Groups for Disproportionate Borrowing in the United States
Impose a 15 Percent Minimum Tax on Book Earnings of Large Corporations
Provide Tax Incentives for Locating Jobs and Business Activity in the United States and Remove Tax Deductions for Shipping Jobs Overseas

Support Housing and Infrastructure

Expand the Low-Income Housing Tax Credit
Provide Neighborhood Homes Investment Tax Credit
Make Permanent the New Markets Tax Credit (NMTC)
Provide Federally Subsidized State and Local Bonds for Infrastructure

Prioritize Clean Energy

Eliminate Fossil Fuel Tax Preferences
Extend and Enhance Renewable and Alternative Energy Incentives
Provide Tax Credit for Electricity Transmission Investments
Provide Allocated Credit for Electricity Generation from Existing Nuclear Power Facilities • Establish New Tax Credits for Qualifying Advanced Energy Manufacturing
Establish Tax Credits for Heavy- and Medium-Duty Zero Emissions Vehicles
Provide Tax Incentives for Sustainable Aviation Fuel
Provide a Production Tax Credit for Low-Carbon Hydrogen
Extend and Enhance Energy Efficiency and Electrification Incentives
Provide a Disaster Mitigation Tax Credit
Expand and Enhance the Carbon Oxide Sequestration Credit
Extend and Enhance the Electric Vehicle Charging Station Credit
Reinstate Superfund Excise Taxes and Modify Oil Spill Liability Trust Fund Financing

AMERICAN FAMILIES PLAN

Strengthen Taxation of High-Income Taxpayers

Increase the Top Marginal Income Tax Rate for High Earners
Reform the Taxation of Capital Income
Rationalize Net Investment Income and Self-Employment Contributions Act Taxes Support Workers, Families, and Economic Security
Make Permanent the American Rescue Plan Expansion of Premium Tax Credits
Make Permanent the Expansion of the Earned Income Tax Credit (EITC) for Workers Without Qualifying Children
Make Permanent American Rescue Plan Changes to the Child and Dependent Care Tax Credit • Extend the Child Tax Credit Increase Through 2025 and Make Permanent Full Refundability • Increase the Employer-Provided Childcare Tax Credit for Businesses

Close Loopholes

Tax Carried (Profits) Interests as Ordinary Income
Repeal Deferral of Gain from Like-Kind Exchanges
Make Permanent Excess Business Loss Limitation of Noncorporate Taxpayers

Improve Compliance

Provide the IRS the Resources to Address Sophisticated Tax Evasion Through Sustained, Multi-Year Mandatory Appropriation
Introduce Comprehensive Financial Account Reporting to Improve Tax Compliance Improve Tax Administration
Increase Oversight of Paid Tax Return Preparers
Enhance Accuracy of Tax Information
Expand Broker Information Reporting with Respect to Crypto Assets
Address Taxpayer Noncompliance with Listed Transactions
Modify Tax Administration Rules
Authorize Limited Sharing of Business Tax Return Information to Measure the Economy More Accurately

IN THE NEWS

Democrats wary of emerging bipartisan infrastructure deal. (The Hill, 6/11)

“Progressive Democrats are wary of an emerging deal on infrastructure being negotiated by five Republican and five Democratic senators, fearing it could make it tougher to get prized priorities to President Biden’s desk. The progressives are specifically worried that passing a bipartisan infrastructure package consisting of the most popular infrastructure spending priorities — such as funding for roads, bridges, rail, public transport, airports and rural broadband internet — will make it tougher to marshal support for a bigger reconciliation package down the road.”

Deal or no deal? Confusion rules infrastructure talks. (Politico 6/10)

“Senators painted a confusing picture on the status of infrastructure talks as they left D.C. for the weekend, with some claiming major progress and others skeptical a deal is in hand. Sen. Mitt Romney (R-Utah), a member of a bipartisan negotiating group, said talks are ‘in the middle stages’ but that he did not expect a deal before the Senate left Thursday. Sen. Jon Tester (D-Mont.) said the centrists don’t have an agreement but ‘we might,’ listing remaining and long-held disagreements over spending numbers and how to pay for it.”

One set of infrastructure talks failed. What’s next as Biden seeks a bipartisan plan? (Yahoo Finance 6/9)

“President Biden could be facing a make-or-break moment at home in his push for an expensive infrastructure proposal while he’s traveling in Europe this week on his first overseas diplomatic trip since taking office. One set of negotiations with Republicans broke down shortly before he left, and now the White House is exploring other options for reaching a bipartisan deal.”

Biden’s infrastructure negotiations with Republicans collapsed. What happens now? (Finance 6/9)

“Long-running infrastructure negotiations between President Biden and a coalition of Republicans imploded on Tuesday, increasing the likelihood that Democrats go it alone on a sweeping, multitrillion dollar spending package. The end of the talks between Biden and Sen. Shelley Moore Capito, the lead GOP negotiator, comes despite weeks of back and forth. The two sides – which each blamed the other for the collapse – were still deeply divided over the cost of an infrastructure package, which types of projects should be included and whether to raise taxes.”

On infrastructure, Biden eyes Plan B (and perhaps Plan C) (MSNBC 6/9)

“It was nearly four months ago when President Joe Biden first invited a bipartisan group of senators to the Oval Office for infrastructure talks. At the time, much of Congress was still focused on a pending COVID relief package, but the White House was eager to get the ball rolling on the next big legislative initiative. In the four months that followed, Biden went to rather extraordinary lengths to present offers designed to make Republicans happy. When GOP senators told the president he’d have to slash the price tag of his plan, he did. When GOP senators also insisted that Biden craft a proposal that left Trump-era tax rates alone, he did that, too.”

What to Know in Washington: Biden’s Dealmaking Hopes Dealt Blow (Bloomberg 6/9)

“President Joe Biden’s hopes for a bipartisan deal on the biggest infrastructure package in decades took a blow with the end of direct talks with the lead GOP negotiator, increasing the likelihood that Democrats pursue a sweeping, multi-trillion dollar package on their own. Negotiations between Biden and Sen. Shelley Moore Capito (R-W.Va.) ended with a phone call yesterday after almost four weeks of efforts failed to bridge wide differences on both spending and funding. Each side blamed the other for intransigence.”

Biden Holds ‘Constructive and Frank’ Meeting with Republicans’ Top Infrastructure Negotiator (NYT 06/09)

“President Biden met Wednesday afternoon with Senator Shelley Moore Capito of West Virginia, a Republican leading talks on a bipartisan infrastructure package, as negotiations reach a critical juncture. Two months after Mr. Biden introduced his $2 trillion infrastructure plan, the administration has signaled that it is ready to move on from bipartisan negotiations barring significant developments this week.”

Democrats blast Biden climate adviser over infrastructure remarks (The Hill 06/09)

“Congressional Democrats from the party’s centrist and left wings blasted comments by White House climate adviser Gina McCarthy suggesting the White House was willing to remove climate measures from its infrastructure plan. In an interview with Politico published Tuesday, McCarthy said that ‘while every piece like a clean electricity standard may not end [up] in the final version’ of an infrastructure package, ‘we know that it is necessary, we know that the utilities want it, we are going to fight like crazy to make sure that it’s in there. And then we’re going to be open to a range of other investment strategies.’”

Buttigieg: GOP must offer White House ‘clear direction’ on infrastructure in 1 week Spectrum (06/09)

“Transportation Secretary Pete Buttigieg said Sunday time is running short for a bipartisan deal on infrastructure, indicating that President Joe Biden will look to act without Republican support if there is no consensus when Congress returns from its Memorial Day break.”

Exclusive: US businesses warn crumbling infrastructure is hurting the economy (K10 6/9)

“As infrastructure negotiations between the White House and a GOP Senate group broke down this week, business executives are warning that aging infrastructure is holding America back. Nearly two thirds (63%) of middle market executives say the nation’s ailing infrastructure is restricting growth of the national economy, according to a new RSM survey shared exclusively with CNN Business. The survey, conducted in partnership with the US Chamber of Commerce, also found that 60% of these executives say the state of infrastructure is hurting local economies as well.”

Buttigieg continues to push for Biden’s Infrastructure Plan (KGTV 6/9)

“Negotiations are at a standstill after Republicans shut down President Biden’s ‘American Jobs Plan.’ ABC 10News spoke with Transportation Secretary Pete Buttigieg Wednesday, who is still pushing to get it passed. “Our preference is still for a bipartisan pathway,” Buttigieg said. It is an eight-year, $2.65 trillion plan to upgrade the nation’s infrastructure, invest in manufacturing and research and development, as well as expand on long-term care services. $115 billion of that is slated to improve bridges, highways, and roads.”

A Biden Climate Test on the Banks of the Mississippi (New Yorker 6/9)

“Indigenous groups are demanding that the Line 3 pipeline go the way of the Keystone XL. I suppose that, if I’d thought about it, I could have figured out that there had to be a place where you could jump across the Mississippi. But I’d seen its majestic flow at so many points along its course (ripping through Minneapolis, regal in St. Louis, oceanic by Baton Rouge) that I’d never imagined it as a mere trickle. Now I have—I’ve waded through that trickle, in fact—and on an epic day in recent American Indigenous and environmental activism.”

Developer officially cancels Keystone XL pipeline project blocked by Biden (Reuters 6/9)

“A $9 billion oil pipeline that became a symbol of the rising political clout of climate change advocates and a flash point in U.S.-Canada relations was officially canceled on Wednesday. Keystone XL, which was proposed in 2008 to bring oil from Canada’s Western tar sands to U.S. refiners, was halted by owner TC Energy Corp after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project.”

Biden’s climate chief to meet with oil CEOs on carbon crackdown (Houston Chronicle 6/9)

“Chief executives of some of the largest U.S. oil companies are set to meet with White House National Climate Adviser Gina McCarthy on Wednesday as the Biden administration nears pivotal decisions on drilling and auto emissions.”

Biden Infrastructure Plans Could Spur Clean Energy Deals (JD Supra 6/8)

“On March 31, 2021, President Biden proposed the American Jobs Plan (‘Biden’s Plan I’), a $2.3 trillion infrastructure plan to invest in roads, transportation, water, broadband, and clean energy. In response, on April 22, 2021, Republican lawmakers unveiled a $568 billion roadmap (‘the Republican Plan’) that focuses on traditional infrastructure exclusively. Most recently, on April 28, 2021, President Biden announced the $1.8 trillion American Families Plan (‘Biden’s Plan II’), which does not focus on tangible infrastructure but contains proposed tax increases to pay for both Biden’s Plan I and Biden’s Plan II (together, the ‘Plans’). The investment contemplated in the Plans is frequently cited for its potential to increase M&A activity in the clean energy sector, particularly given President Biden’s focus on clean energy as a central piece of his climate change goals.”

White House Creates Supply Chain Disruption Task Force (Winsight Grocery Business 6/8)

“Against a backdrop of a spike in global food prices and calls from U.S. food industry players to shore up domestic supply chains, the Biden administration on June 8 announced the creation of a supply-chain task force as well as $4 billion in funding through the U.S. Department of Agriculture to strengthen and diversify the U.S. food system. The new Supply Chain Disruptions Task Force will ‘focus on areas where a mismatch between supply and demand has been noted over the past several months,’ including agriculture and food, according to the White House.”

VP Kamala Harris invites all 24 female senators for dinner party as infrastructure talks stall (New York Daily News 6/8)

“Vice President Harris has invited all female members of the Senate for a dinner party at her Washington, D.C., residence next week, according to an aide, reviving a bygone tradition as the White

House struggles to muster bipartisan support for a major infrastructure plan. The dinner is set for June 15 at One Observatory Circle, and all 24 women senators — 16 Democrats and eight Republicans — have been asked to attend, the aide told the Daily News on Tuesday. Word of the get-together was first reported by Politico.”

Biden’s infrastructure deadline comes and goes without agreement (WBFO 6/8)

“Tens of millions of dollars are expected to come to Western New York from the Biden Administration’s giant infrastructure proposal now before Congress. But with so many local projects in need, which should take priority?”

Murkowski is part of new bipartisan group negotiating with Biden on ‘infrastructure’ (Must Read Alaska 6/8)

“The bargaining between the Republicans in the Senate and President Joe Biden came to an impasse Tuesday, and the president broke of the talks. He is instead working with a group of 20 senators on a massive infrastructure bill that at least one Democrat lawmaker has admitted is much ado about climate change, rather than roads and bridges.”

What Is Pete Buttigieg Doing? (The Atlantic 6/8)

“Pete Buttigieg stopped on a spring afternoon to pet an Amtrak-police dog on his way to greet the conductor and the rest of the crew. We were somewhere between Raleigh and Greensboro, North Carolina, traveling between two events aimed at promoting the Biden administration’s $2 trillion infrastructure proposal.”

For infrastructure deal, Biden eyes ‘multiple paths forward’ (WKYT 6/8)

“President Joe Biden is pursuing ‘multiple paths forward’ as he looks to muscle his big infrastructure package through Congress — dialing up lawmakers from both parties in search of a bipartisan deal while imploring Democrats to be ready to go it alone if necessary. It’s an approach that shows the political perils ahead for the White House and anxious Democrats eager to make gains on their agenda, but also the potential routes to a $1 trillion-plus investment package that would be a signature accomplishment for the president and his party in power.”

Infrastructure talks collapse as Biden begins foreign trip (NBC Universal 6/8)

“Pres. Biden begins a critical first foreign trip just as talks with a key Republican senator on his infrastructure plan collapse and the Senate releases a bipartisan report on the Capitol insurrection. MSNBC’s Brian Williams discusses with Philip Rucker, Katie Benner, and Lt. Gen. Russel Honoré.”

Biden shifts strategy on infrastructure deal (Argus 6/8)

“Biden had spent weeks trying to reach an infrastructure deal with the US Senate Transportation and Infrastructure Committee’s ranking member Shelley Moore Capito (R-West Virginia), but she said Biden called her today to end negotiations. The two sides had made limited progress on the two central issues for the bill: its overall size and how to pay for the new spending.”

‘Energy Justice’ Nominee Brings Activist Voice To Biden’s Climate Plans (NPR 6/8)

“Capitol Hill lawmakers Tuesday questioned one of President Biden’s top picks for the Department of Energy, a woman with a history of activism who will help shape the administration’s focus on environmental justice. Shalanda Baker already works at the department in a newly-created role of Deputy Director for Energy Justice. Her confirmation hearing is for a promotion to become Director of the Office of Minority Economic Impact.”

Biden climate adviser: Infrastructure plan could omit some climate proposals (Politico 6/8)

“President Joe Biden’s National Climate Adviser Gina McCarthy said on Tuesday some ambitious proposals to fight climate change could fall out of the infrastructure package, but the administration would not give up its pursuit of the measures to push green energy to slash greenhouse gases.”

CONGRESSIONAL PROPOSALS/NEWS

House committee approves $547 billion surface transportation package (CNN 6/10)

“The House Transportation and Infrastructure Committee approved a $547 billion surface transportation package aimed at pouring money into the country’s roads, bridges and transit systems over the next five years. The bill is one piece of President Joe Biden’s larger infrastructure package and marks the beginning of Democrats’ efforts to go it alone on infrastructure, while a bipartisan agreement tries to be reached in the Senate over the larger proposal. The House proposal includes many of the same provisions that Biden proposed in his own initial $2.25 trillion infrastructure plan, known as the American Jobs Plan, as well as a major embrace of green technology and a focus on mass transportation.”

Earmarks list for states in U.S. House infrastructure bill tops $5.7B (The Ohio Capital Journal 6/10)

“U.S. House Democrats’ highway funding bill is poised to include roughly three out of five transportation projects submitted by members, as legislators vie for their share of federal dollars through the resurrected congressional earmarks process. The 1,473 projects that made the cut were out of 2,383 that Democratic and Republican legislators requested for inclusion in a federal infrastructure bill, at a time when infrastructure is the subject of prolonged, high-profile negotiations between the White House and Republicans in Congress. The earmarks list — detailed in an amendment to five-year, $547 billion surface transportation reauthorization bill that the House Transportation and Infrastructure Committee will take up on Wednesday — has a price tag of $5.7 billion. That’s about 40% of the nearly $14.9 billion that was requested for member-designated projects.”

U.S. senators push for infrastructure plan that avoids tax hikes (Reuters 6/9)

“A bipartisan group of 10 senators is trying to craft a plan to revitalize U.S. roads and bridges without tax hikes, lawmakers said on Wednesday, though some of President Joe Biden’s fellow Democrats fretted that such an approach on infrastructure legislation would fail. Revamping America’s infrastructure is a high priority for Biden, but his sweeping $1.7 trillion proposal has run into trouble in a Congress that his party only narrowly controls, making Republican support pivotal. Republican Senator Mitt Romney told reporters that members of the group have reached ‘tentative conclusions’ on their plan but did not provide details. The proposal is expected to total nearly $900 billion.”

Sen. Capito explains why infrastructure talks with Biden collapsed (Fox Business 6/9)

“Capito met with Biden on several occasions over the past few weeks to try and bridge the approximately $700 billion gap between Republicans and Democrats. Biden on Tuesday called off the talks after the two sides were unable to reach an agreement. ‘In the end, we never got to the scope of what infrastructure is,’ Capito, told Dana Perino on Fox News’ ‘America’s Newsroom.’ ‘The president still had in his plan extraneous items we felt that were not exactly physical infrastructure.’”

Mitch McConnell Rips President Joe Biden Over Breakdown in Infrastructure Talks (MSN 6/9)

“U.S. Senate Minority Leader Mitch McConnell ripped the Biden administration on Wednesday for cutting off infrastructure negotiations with U.S. Senator Shelley Moore Capito, a West Virginia Republican who has had multiple conversations directly with President Joe Biden in recent days to try to hash out an agreement that GOP lawmakers could get behind. ‘[Capito]’s led several of our colleagues in literally exhaustive efforts to put a bipartisan deal within reach,’ the Kentucky Republican said on the Senate floor on Wednesday. ‘An agreement requires that actually each side is willing to give up some of what it wants, and as we learned yesterday, President Biden is unwilling to let go of some of the most radical promises he made to the left wing of his party.’”

Swing-seat Democrats under GOP assault over infrastructure (Denver Gazette 6/9)

“Three House Democrats representing swing districts are under attack by a Republican group aligned with House Minority Leader Kevin McCarthy that opposes President Joe Biden’s infrastructure package. The American Action Network unveiled a $1 million advertising campaign Wednesday targeting Rep. Cindy Axne in Iowa’s 3rd Congressional District, Rep. Jared Golden in Maine’s 2nd, and Rep. Ron Kind in Wisconsin’s 3rd. The spots, running on television and digital platforms, tie Biden’s proposal to House Speaker Nancy Pelosi.”

‘DUFUS’: As infrastructure bill drags on, lawmakers get punchy (Politico 6/9)

“Wednesday’s House markup of a multibillion-dollar surface transportation bill had been going for over five hours with no end in sight and tensions were running high. Moving to sit just behind one of his Republican colleagues, Rep. Garret Graves (R-La.), typed ‘RODNEY DAVIS = DUFUS’ into a blank Word document, carefully angling the computer toward the camera and blowing out the font size before returning to his own seat.”

House Democrats’ transportation bill may leave GOP at the station (Roll Call 6/9)

“House Republicans on Wednesday offered little hope of a ‘Kumbaya’ moment over infrastructure during a markup of the five-year, $547 billion surface transportation bill, blasting the Democratic measure as a partisan ‘waste of time.’ Their complaints came less than 24 hours after bipartisan infrastructure talks between President Joe Biden and six Senate Republicans collapsed and provided yet another blow to his stated quest to seek a bipartisan deal on his $2 trillion-plus public works plan.”

House moderates unveil $1.25T infrastructure plan (The Hill 6/9)

“A bipartisan group of House moderates on Wednesday unveiled an eight-year, $1.25 trillion infrastructure plan designed to help break the months-long impasse over President Biden’s top domestic legislative priority. The framework offered by the 58-member Problem Solvers Caucus calls for more than $959 billion for traditional infrastructure, including highways, bridges, rail, airports and waterways; $25 billion of that money would be set aside for electric vehicle infrastructure, including electric buses.

The plan also calls for $74 billion for drinking water and wastewater systems; $71 billion for the electric grid and clean-energy programs; $45 billion for broadband; and $10 billion for veterans’ housing.”

Capito ‘frustrated,’ says White House ‘kept moving the goalposts’ on infrastructure (Politico 6/9)

“Sen. Shelley Moore Capito (R-W.Va.) said Wednesday that she was ‘frustrated’ that the White House ‘kept moving the goalposts on us’ after infrastructure negotiations with the Biden administration fell apart Tuesday. ‘I’m a bit disappointed and frustrated that the White House really kept moving the ball on me and then just finally brought me negotiations that were untenable and then ended the negotiations altogether,’ Capito said in a Fox News interview.”

Bipartisan groups will keep working on infrastructure – the hard part is how to pay for it (CNBC 6/9)

“Bipartisan groups in Congress will try to craft an infrastructure bill after talks between President Joe Biden and Republicans collapsed…A group of Democratic and GOP senators and the bipartisan House Problem Solvers Caucus are trying to put together possible compromises. Both contingents have an idea of what they want to put in an infrastructure bill. Neither has agreed on funding methods, as Republicans oppose Biden’s plan to hike corporate taxes and Democrats resist proposals to charge new consumer fees or repurpose coronavirus aid funds. Tax increases are ‘off the table,’ Sen. Mitt Romney, a Utah Republican involved in the talks, told reporters Wednesday. As he acknowledged the GOP would not back any tax hikes, Sen. Jon Tester, a Montana Democrat who has joined in the negotiations, said Wednesday that deciding how to pay for infrastructure ‘is probably the toughest part about this, from my perspective.’”

White House infrastructure talks with Capito collapse, leading to fingerpointing as Biden shifts strategy (The Washington Post 6/8)

“President Biden ended negotiations with a group of Republicans led by Sen. Shelley Moore Capito (R W.Va.) over his infrastructure package Tuesday as the two sides failed to strike a deal after weeks of talks… The White House and Capito proved unable to bridge their differences, and they remained far apart on the scope of the package and whether to make changes to tax law to pay for it. Now, Biden will attempt to negotiate with a group of Democrats and Republicans at once, a challenge that could prove more difficult but ultimately lead to more votes.”

Bipartisan Senators Prepare Backup Infrastructure Offer (WSGW CBS News 6/8)

“A bipartisan group of senators is preparing a secondary infrastructure proposal as negotiations between the White House and several Republican senators appear to be stalling. The smaller, bipartisan group is composed of around six senators, including Republican Senators Mitt Romney, Rob Portman, Susan Collins and Lisa Murkowski and Democratic Senators Kyrsten Sinema and Joe Manchin. Romney told reporters on Tuesday that his group was ‘nailing down’ the details of its proposal and would soon take it to the ‘G-20,’ a group of 20 moderate senators from both parties.”

Manchin pushes back against Dem-only infrastructure bill as bipartisan negotiations crumble (Fox Business 6/8)

“Sen. Joe Manchin, D-W.Va., is resisting growing pressure from his fellow Democrats to go it alone on President Biden’s proposed $2.3 trillion tax and spending plan, even as infrastructure negotiations between the White House and a coalition of Republicans ran into a wall this week. Asked Tuesday

whether he supported using budget reconciliation to pass the package, known as the American Jobs Plan, Manchin said: ‘I’m not even close to the thought process on that. We’re just trying to find an infrastructure bill we can all agree on.’”

Schumer, Pelosi Face New Pressure as Infrastructure Talks Stall (Bloomberg 6/8)

“Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi, working with the slimmest of margins in the House and Senate, had been striving to pass Biden’s jobs and infrastructure proposal before Congress leaves for an August recess. But time is rapidly running out for putting together and

passing a bill by that deadline. And Democrats, including Schumer, have been wary of getting bogged down in months of negotiations, as they were in 2009 on the Affordable Care Act.”

Republicans Counter Biden’s Infrastructure Plan (New York Times 6/7)

“Senate Republicans on Thursday proposed spending less than one seventh of what President Biden has requested in his expansive $1.7 trillion infrastructure initiative, countering with $257 billion in new funding for roads, bridges and other public works. The narrow scope of the plan, which Republicans said would amount to a total of $928 billion over eight years when paired with existing programs — $1.4 trillion short of Mr. Biden’s proposal of new funds — illustrated the long odds that negotiations will yield a workable bipartisan compromise. The latest Republican plan contains another probable deal breaker: They suggest paying for much of their proposal by repurposing funds from the $1.9 trillion pandemic relief law, an approach that White House officials have repeatedly rejected. Instead, Mr. Biden has proposed large tax increases on corporations and wealthy taxpayers to pay for his much larger package, a prospect that Republicans, in turn, have refused even to consider.”

Rep. Cindy Axne: Infrastructure bill needs child care, broadband programs (Iowa Capital Dispatch 6/7)

“U.S. Rep. Cindy Axne says biofuels, childcare and broadband are key priorities for a massive infrastructure plan undergoing negotiations in Washington D.C. President Joe Biden is working with Republicans to pare back his $2.3 trillion infrastructure proposal and secure bipartisan support. Some moderate Democrats have insisted that Republicans work alongside Democrats on the bill, even though Democrats hold a majority in both the House and the Senate. Axne, a Democrat from Iowa’s 3rd congressional district, said Monday that until she sees a final version of the complete infrastructure bill she can’t commit to voting one way or the other. ‘It’s got to hit the really important things,’ she said. ‘And if it doesn’t with a bipartisan bill, then we’re going to have to move forward with a bill that does.’”

‘Stay to the issues’: Rep. McKinley on President Biden’s infrastructure bill (13 WOWK News 6/7)

“McKinley is one of two professional engineers in the entire congress. He says he’s behind what U.S. Senator Shelley Moore Capito (R-WV) is trying to do as the Republican representative. He’s behind what Biden’s trying to do with this bill. ‘We need to address the infrastructure, sewer, water lines, roads and bridges. But also broadband. And that’s where Shelley comes in,’ said McKinley. ‘[Shelley] would stick to those matters, the basics and the core of what makes up infrastructure. It would pass bipartisan overwhelmingly.’ However, McKinley disagrees with Biden’s social issues being in the infrastructure bill. ‘They’re good issues. I know they are important for society. But do not lump them in with an infrastructure bill,’ said McKinley. ‘When you add the other things into it, it causes a delay. That is where we have to get this thing. Tactic. Stay to the issues that need to be done.’”

PAY-FORS

U.S. senators push for infrastructure plan that avoids tax hikes (Reuters 6/9)

“Revamping America’s infrastructure is a high priority for Biden, but his sweeping $1.7 trillion proposal has run into trouble in a Congress that his party only narrowly controls, making Republican support pivotal. Republican Senator Mitt Romney told reporters that members of the group have reached ‘tentative conclusions’ on their plan but did not provide details. The proposal is expected to total nearly $900 billion. ‘We’re not raising taxes,’ Romney told reporters. ‘We’re going to be talking to other members to see if we can get enough support for this to have the necessary votes to be successful.’ A Democratic member of the group, Senator Jon Tester, said he would be willing to look at funding an infrastructure plan without raising taxes though he was not committed to that approach. ‘I would consider it, sure,’ Tester said. ‘I think there’s plenty of pots of money out there – hopefully they’re not all smoke and mirrors…’”

Bipartisan group avoids partisan hurdles in infrastructure talks (Roll Call 6/9)

“Members of a bipartisan Senate group negotiating a fallback infrastructure plan say they will avoid tax increases and user fees, but include climate-related spending, in a bid to get past obstacles that have tripped up progress on a $1 trillion-plus package thus far. Louisiana Republican Sen. Bill Cassidy said Wednesday that the group of senators he is negotiating with has a chance to show President Joe Biden there are Democrats willing to eschew partisan proposals to get a deal. The senators have not yet finalized their proposal, including how exactly to pay for it, but they have appeared to make some concessions that Biden and a group of Senate Republicans, led by Environment and Public Works ranking member Shelley Moore Capito of West Virginia were largely unwilling to in their negotiations that ended Tuesday. The so-called G-20 group of senators has kept tax increases off the table to appease the Republican members and is including some climate-related infrastructure spending that Democrats have demanded, multiple senators involved in the talks said Wednesday…”

POLITICO Playbook PM: Who Manchin dined with last night (Politico 6/9)

“AFTER MONTHS THERE ARE STILL NO AGREED UPON PAY-FORS — Don’t expect the White House’s insistence on raising taxes to pay for infrastructure to play any better with the new GOP negotiators. Sens. MITT ROMNEY (Utah) and ROB PORTMAN (Ohio) both shot down the idea of new taxes as a nonstarter this morning, CNN’s Manu Raju reports. Minority Whip JOHN THUNE (S.D.) is already saying he cannot really envision the group being successful. And Sen. JON TESTER (D-Mont.) says he’s giving the talks about a week…”

Biden’s infrastructure talks with GOP collapse amid irreconcilable differences (NBC 6/8)

WASHINGTON — President Joe Biden’s infrastructure talks with Republicans collapsed Tuesday, the lead GOP negotiator said. ‘I spoke with the president this afternoon, and he ended our infrastructure negotiations,’ Sen. Shelley Moore Capito, R-W.Va., said in a statement. The end of the talks will increase pressure on Democrats to pass a sweeping package using a special process that does not require any Republican votes in the Senate. Weeks of negotiations failed to bring the White House and Republicans close to a deal. They remained far apart on a total price tag for a bill, which types of projects should be included and whether to raise any new taxes…”

It’s infrastructure week … again (Politico 6/7)

“CompassPoint’s Isaac Boltansky: ’It is unclear how much longer the White House will push for a bipartisan deal … We are still bearish on the prospects for a bipartisan infrastructure package given remaining divides over the scale, scope, and pay-fors …’

‘We continue to believe the odds favor the enactment of a multitrillion-dollar spending package with new taxes on corporations, capital, and high-earners offsetting a portion of the total cost…’”

Details and Analysis of President Biden’s American Jobs Plan (Tax Foundation 6/4)

“The Biden administration’s proposed American Jobs Plan (AJP) would increase federal spending by about $2.2 trillion over 10 years, including $1.7 trillion for infrastructure, partially funded with permanently higher corporate taxes of about $1.7 trillion over 10 years (conventionally estimated). Using the Tax Foundation General Equilibrium Model, we find that the combined effects of the tax changes and spending would reduce U.S. gross domestic product (GDP) in the long run by 0.5 percent and result in 101,000 fewer U.S. jobs. The American Jobs Plan would include the following major tax changes: Raise the federal statutory corporate tax rate from 21 percent to 28 percent. Raise the Global Intangible Low-Tax Minimum Tax (GILTI) from 10.5 percent to 21 percent, calculate GILTI on a per country basis, and eliminate the exemption of the first 10 percent return on foreign qualified business asset investment (QBAI). Repeal the foreign derived intangible income (FDII) deduction. Impose a 15 percent minimum tax on corporate book income for firms with over $2 billion in net income…”

House Democrats announce infrastructure bill amid Biden negotiations (CBS 6/4)

“House Democrats unveiled their own infrastructure bill on Friday that would address parts of President Biden’s American Jobs Plan, as negotiations between the president and Senate Republicans slow down. The proposal announced by House Transportation and Infrastructure Committee Chair Peter DeFazio would cost $547 billion over five years, encompassing the portions of Mr. Biden’s $1.7 infrastructure proposal that are covered by the committee… The legislation does not include any means to pay for it, since that is not part of the committee’s jurisdiction. The committees that write congressional funding measures, House Ways and Means and Senate Finance, have not yet proposed ways of funding the infrastructure bills…”

Biden offers to keep 2017 Trump tax cuts intact in infrastructure counteroffer to GOP (USA Today 6/3)

“WASHINGTON – In a concession to Republicans, President Joe Biden proposed that instead of raising the corporate tax rate to pay for a bipartisan infrastructure package totaling at least $1 trillion, they’d work to ensure corporations don’t exploit tax loopholes. But the president still supports raising corporate taxes to cover other parts of his agenda, the White House said…”

Biden offers tax concession in infrastructure talks with key Republican (The Washington Post 6/3)

“President Biden signaled at a private meeting on Wednesday that he would be open to significant revisions on the size of his infrastructure package and how it would be paid for in order to win Republican support, outlining a plan for about $1 trillion in new spending financed through tax changes that do not appear to raise the top corporate rate. While Biden has not abandoned his call for these tax increases as part of his broader agenda, the moves are still a potential new concession in stalled talks over funding to improve the country’s roads, bridges, pipes and ports…”

Biden Floats 15% Minimum Corporate Tax in Talks with GOP (Bloomberg 6/3)

“President Joe Biden has pitched to Republicans the idea of a 15% minimum tax on U.S. corporations, along with strengthened IRS enforcement efforts, to fund a bipartisan infrastructure package.
The proposal sets aside the Biden administration’s proposal to raise the headline corporate income rate to 28% from 21% – a non-starter for Republican lawmakers – though that could be pursued elsewhere. White House Press Secretary Jen Psaki confirmed the offer during a briefing Thursday.”