October 22, 2021
KEY TAKEAWAYS:
- On October 31, the 30-day surface transportation extension will expire, and Democrats will either have to pass the Bipartisan Infrastructure Deal (BID) or pass another short-term extension. The BID’s fate is still linked to the budget reconciliation package, as progressives have shown no sign of backing down from their demand the two be paired. This week has largely been focused on negotiating cuts to the budget reconciliation package, with the goal of getting the topline number around $1.9 trillion. It appears that Congressional leadership and the President have come to a consensus, even if the progressives do not seem to be happy with the changes to the overall package.
- Currently, as the budget reconciliation package stands, the $3.5 trillion can be broken down into four major buckets: $1.9 trillion for family proposals, $1.0 trillion for health proposals, $0.6 trillion for climate proposals, and $1.1 trillion for the other proposals, which include the housing, higher education, immigration, and infrastructure funding. Democrats have been organizing their priorities to determine which provisions are safe and which they are likely to concede. As of right now, it appears that Democrats will eliminate free community college, reduce homecare funding for the elderly and disabled, change the child tax credit extension to one year, and reduce paid leave benefits down to four weeks. The provisions for universal pre-k and the expansion of Medicare to include dental, vision, and hearing are most likely safe from being cut. The biggest question mark remains where the climate related provisions will fall.
- Senator Bernie Sanders (I-VT) set off a few fireworks when he placed an op-ed in a West Virginia newspaper advocating for the budget reconciliation package. This did not sit well with the Senator from West Virginia, Joe Manchin, who said, “No op-ed from a self-declared Independent socialist is going to change that.” Sanders and Manchin later sat down to reach an understanding, which one Democratic senator described as a “breakthrough.” It seemed that Manchin indicated a willingness to reach a deal on the framework. However, it was reported that Manchin and Sanders squabbled behind closed doors on Wednesday. Manchin suggested that he could live without any of the spending plan. The pressure for Democrats to reach a deal is increasing, as Senator Mark Warner (D-VA) has expressed a desire for a quick vote on the BID, with or without the budget reconciliation. This week’s disagreements show that the Democrats remain apart from an actual agreement.
- This week has included a variety of discussions on taxes. First, Democrats have made changes to the thresholds on the bank reporting requirements. The number that Democrats landed on is $10,000, after major pushback from Republicans and the banking world. The original $600 was deemed as too low and invasive. Also, House Ways & Means Chairman Richard Neal (D-MA) and other members have not forgotten about making changes to the SALT cap deductions. After rumors that SALT relief provisions were removed, Senate Majority Leader Chuck Schumer (D-NY) was negotiating on behalf of moderate Democrats from high income earning states, to inquire and fight to keep these provisions alive. Lastly, Senator Krysten Sinema (D-AZ) made noise this week as she made clear that she is opposed to several tax rate increases on high income earners and businesses. The corporate tax rate is projected to raised roughly $540 billion over a decade and the individual tax increases and capital gains tax increase could raise $300 billion. Changes or removal of these provisions could be a major blow to the revenue offsets of the budget reconciliation. However, after meeting with Chairman Neal, it appears that Sinema has come around to support these revenue provisions.
IN THE NEWS
BIDEN ADMINISTRATION NEWS
Railway expansion in spotlight at President Biden’s Scranton stop (Pocono Record 10/21)
“The president outlined the key points of that bill, which passed the Senate in August and awaits a House vote, as well as his Build Back Better agenda during his speech. ‘I am the most railroad guy you’re ever gonna meet,’ Biden told the audience at the top of his speech, recounting the many miles he traveled via Amtrak as a senator and vice president.”
Biden skips Arizona and West Virginia on trips to tout spending packages (Washington Examiner 10/21)
“President Joe Biden’s travel schedule is raising eyebrows as he tries to rally liberal and centrist Democrats around his infrastructure, social welfare, and climate spending priorities. But instead of attempting to demonstrate the bully pulpit’s power in Arizona and West Virginia, two linchpin senators’ home states, Biden this week is making trips to Maryland and Pennsylvania, after flying to Connecticut last Friday. And pressure is mounting on Biden to broker a deal before November’s Virginia gubernatorial election and the 2022 midterm election cycle.”
President Biden coming to Newark Monday; hopes to rally support for certain items (News 12 10/21)
“President Joe Biden is coming to Newark on Monday. The president is hoping to rally support for his bipartisan infrastructure deal and Build Back Better agenda.”
How Biden’s infrastructure bill could help prevent the next supply chain crisis (CNN 10/21)
“There’s no quick fix for the current pandemic-induced supply chain crisis, but the bipartisan infrastructure bill currently held up in Congress would help prepare the complicated system to handle the next disruption. The legislation calls for major federal investments in each step of the US freight network: Inland waterways and rail used for transporting goods and produce, highways and bridges traveled heavily by truck drivers as well as the nation’s seaside ports, the biggest of which is currently facing a record backlog of shipping containers sitting on scores of ships waiting off the coast.”
Biden focuses on climate, families in trimmed $2T plan (AP 10/20)
“Scaling down his ‘build back better’ plans, President Joe Biden on Tuesday described a more limited vision to Democratic lawmakers of a $2 trillion government-overhaul package with at least $500 billion to tackle climate change and money for middle-class priorities — child tax credits, paid family leave, health care and free pre-kindergarten.”
Biden pushes infrastructure in Pennsylvania as Democrats try to seal deal (Reuters 10/20)
“With his economic agenda hanging in the balance, President Joe Biden on Wednesday visited the Pennsylvania city of his birth to push infrastructure and spending plans he said are needed to transform places like the former coal-mining town.”
Biden scales back $2T infrastructure plan; free community college unlikely (KXAN 10/20)
“President Joe Biden is scaling back his ambitious domestic agenda, describing a more limited vision of his $2 trillion package to Democratic lawmakers, addressing climate change and expanding social services. Likely to be eliminated or shaved back: plans for tuition-free community colleges, a path to permanent legal status for certain immigrants in the U.S. and a clean energy plan that was the centerpiece of Biden’s strategy for fighting climate change.”
Harris takes central role in climate fight (The Hill 10/20)
“When Vice President Harris took the lead Monday on selling the Biden administration’s infrastructure and climate change plans, her allies say it represented a moment for her to speak to an issue that she has championed since her days as a senator. ‘She is very personally engaged in climate and environmental justice,’ said one ally close to the White House, pointing to Harris’s days in the Senate.”
Remarks by President Biden on the Bipartisan Infrastructure Bill and Build Back Better Agenda (White House 10/20)
“These bills are not about left versus right or about moderate versus progressive or anything that pits one American against one another. These bills are about competitiveness versus complacency. They’re about expanding opportunity, not having opportunity denied. They’re about leading the world and continuing to let the world — or let it pass us by.”
POLITICO Playbook: Breaking down Biden’s latest Build Back Better plan (Politico 10/20)
“Biden began pitching lawmakers on an outline for his Build Back Better plan Tuesday night. The proposal, pegged in the range of $1.75 to $1.9 trillion, is far from a done deal: Moderates and progressives will have plenty to say before giving anything their blessing. But Hill Democrats are relieved that Biden is getting his hands dirty after sitting on the sidelines for weeks. ‘This was a productive conversation and also one that demonstrates momentum,’ said a senior congressional aide briefed on one of several meetings Tuesday between the president and lawmakers. ‘This is a sign that the White House is actually putting pen to paper.’”
Biden pushes infrastructure plan in Pennsylvania as Democrats near deal on spending bill (CBS 10/20)
“President Biden visited Scranton, Pennsylvania, on Wednesday to promote key aspects of his economic agenda to working class Americans. Back in Washington, Democrats are inching closer to an agreement on a spending bill for investments in social and climate infrastructure. CBS News senior White House correspondent Weijia Jiang joins CBSN’s Lana Zak with the latest on negotiations, as well as voting rights reform and pediatric COVID-19 vaccines.”
Vice President Harris to visit NYC this week to plug Biden’s infrastructure bills (NY Daily News 10/19)
“Vice President Kamala Harris is heading to the Bronx this Friday to highlight how the Biden administration’s infrastructure agenda would ‘benefit working families’ if approved by Congress, a White House official told the Daily News. Harris, who has taken a lead role in plugging President Biden’s two-tiered infrastructure plan in recent weeks, will be joined by Health and Human Services Secretary Xavier Becerra for the Bronx trip, the official said.”
How will Joe Biden’s spending plans affect inflation? (Quartz 10/19)
“In Washington, the entire agenda of the US government, from fighting wars to fighting climate change, is held up over budget concerns. President Joe Biden’s plans to invest in everything from infrastructure and internet access to infant care and semiconductor innovation remain on hold as lawmakers dicker about the effects on the budget. In a tight Senate, centrist Democrats have expressed concerns that the administration’s plans could be too inflationary—or just too much spending.”
Biden’s $400B plan to overhaul home care is ‘more of a repair effort than a new direction’ (Democrat Chronicle 10/19)
“President Joe Biden made the untangling of this nationwide dilemma a top priority of his administration, earmarking a $400 billion chunk of his initial infrastructure agenda, titled the American Jobs Plan, to tackle home and community-based care. The funding would phase in over eight years.”
With a Halloween deadline, Democrats and Biden race to secure a deal on infrastructure spending (NY Daily News 10/19)
“Democratic lawmakers trekked to the White House on Tuesday searching for new ways to figure out how to get a consensus and wrap up negotiations on what had been President Biden’s sweeping $3.5 trillion budget plan. Nearly 20 centrist and progressive lawmakers met in separate groups with Biden as Democrats review a menu of alternative emission-reducing strategies — one of the most crucial issues for voters who support the president and his party — and race to reach accord on his overall package.”
Biden tells House Democrats tuition-free community college is out of economic package (Fox Carolina 10/19)
“President Joe Biden informed House progressives Tuesday afternoon that the final bill to expand the social safety net is expected to drop tuition-free community college, a major White House priority, according to multiple sources familiar with the matter. Moreover, he indicated that the child tax credit — a key Democratic priority — would likely be extended for one additional year, much shorter than what many in their party wanted, one of the sources said. The child tax credit will also likely be means tested, keeping with what West Virginia Democratic Sen. Joe Manchin had wanted.”
Vice President Kamala Harris Urges Passage Of Infrastructure Bill, Measures To Address Western Drought (Patch 10/18)
“Provisions to address climate change in the $1.9 trillion bipartisan infrastructure package and an even pricier social safety net bill would help alleviate the drought plaguing Western states, Vice President Kamala Harris said in a visit to Lake Mead National Recreation Area on Monday.”
Biden meets with progressives and centrists as Democrats struggle to strike social spending deal (CNBC 10/19)
“President Joe Biden huddled with members of the two warring factions of Democratic lawmakers Tuesday in a bid to salvage his sprawling economic agenda. Biden’s first meeting Tuesday morning was with Sen. Joe Manchin, a moderate West Virginia Democrat and a key vote who can sink or save Biden’s domestic policy plan in the 50-50 split Senate. Biden also met in the morning with Arizona Sen. Kyrsten Sinema, who arrived at the White House shortly before 11 a.m. ET. Like Manchin, Sinema is a moderate Democrat who has far refused to embrace the social safety net bill that makes up one half of Biden’s two-part domestic policy plan.”
Pete Buttigieg and Biden’s Human Infrastructure Problem (US News 10/18)
“Sen. Joe Manchin, the moderate West Virginia Democrat who’s emerged as a crucial holdout in the push by the White House to pass a once-in-a-lifetime package of benefits for children and their families, outlined a new set of demands that would make the trillion-dollar proposal more palatable to him.”
Biden Coming to Pa. to Pitch Climate Change, Infrastructure Funding (NBC Philadelphia 10/18)
“President Joe Biden will travel to Scranton on Wednesday as the Democrat works to rally support in Congress for a social services and climate change package that had been a 10-year, $3.5 trillion proposal. Biden’s visit to his birthplace in Pennsylvania comes just a week after first lady Jill Biden visited nearby Allentown. Biden said Friday he would prefer to cut the duration of programs in the package rather than eliminate some entirely, as Democrats aim to win support from moderate lawmakers by trimming the cost.”
Infrastructure bill: President Biden pushes plan amid bipartisan tensions, Dems infighting (News 3 10/15)
“President Joe Biden pitched his infrastructure bill again Friday as bipartisan tensions flared and Democrat infighting slowed progress. Biden argued that investments in child care and other social safety net programs are imperative to keep America competitive in the global economy during a visit to a child care center in Connecticut. Biden visited a child development center to promote his proposal to make such care free for lower-income families, and ensure that families making up to 150% of their state’s median income pay less than 7% of their salaries on child care. The proposal is part of a massive expansion of the social safety net that Biden has championed and is aiming to pass with just Democratic votes in Congress.”
CONGRESSIONAL NEWS
Scoop: “How about zero?” Manchin, Sanders get heated behind closed doors (Axios 10/21)
“Sens. Joe Manchin (D-W.Va.) and Bernie Sanders (I-Vt.) squabbled behind closed doors Wednesday, with Manchin using a raised-fist goose egg to tell his colleague he can live without any of President Biden’s social spending plan, Axios has learned. The disagreement, recounted to Axios by two senators in the room, underscores how far apart two key members remain as the Democratic Party tries to meet its deadline for reaching an agreement on a budget reconciliation framework by Friday.”
Pelosi Says Democrats Making ‘Great Progress’ on Economic Agenda (BGov 10/21)
“House Speaker Nancy Pelosi says Democrats’ economic agenda will be smaller but still historic. Senator Ron Wyden and Rep. Richard Neal are working on the tax portion of the plan, Pelosi says at press conference. ‘The bill will be fully paid for and the matter is in the hands of our chairs of the Finance Committee and the Ways and Means Committee,’ Pelosi says.”
Democratic insistence on linking infrastructure and budget bills has been costly for Biden (NBC News 10/21)
“More than 70 days ago, the U.S. Senate handed President Biden his biggest bipartisan victory yet — an infrastructure bill providing $550 billion in new spending, and $1 trillion overall, for highways, transit, water and broadband.”
The Democrats Have a Lot of Cutting to Do (NYT 10/20)
“As Democrats in Congress debate how to pare back their big social spending bill — to a total budget increase of less than $2 trillion over a decade — they have even further to go than it may appear. The Congressional Budget Office has said it is ‘unclear when’ it will provide official estimates for the entire proposal written by the House last month.”
Democrats are trimming the Build Back Better agenda to $1.9 trillion. What’s in, out, and still in play (Fortune 10/20)
“President Joe Biden and congressional Democrats met Tuesday to work on winnowing down the initial $3.5 trillion budget to a spending plan between $1.9 trillion and $2.2 trillion. The meetings come after senators Joe Manchin (D-W.V.) and Kyrsten Sinema (D-Ariz.) have firmly refused to support the $3.5 trillion price tag.”
How Biden’s infrastructure bill could help prevent the next supply chain crisis (CNN 10/21)
“There’s no quick fix for the current pandemic-induced supply chain crisis, but the bipartisan infrastructure bill currently held up in Congress would help prepare the complicated system to handle the next disruption. The legislation calls for major federal investments in each step of the US freight network: Inland waterways and rail used for transporting goods and produce, highways and bridges traveled heavily by truck drivers as well as the nation’s seaside ports, the biggest of which is currently facing a record backlog of shipping containers sitting on scores of ships waiting off the coast.”
U.S. Republicans say fixing supply chain is more urgent than social spending (Reuters 10/21)
“A group of 160 Republican lawmakers said addressing supply chain woes that have dramatically slowed the manufacture and shipment of goods around the United States must be fixed before considering new spending on social programs, according to a letter sent to President Joe Biden on Wednesday.”
What’s in, and what’s out, as Democrats trim Biden infrastructure bill (PBS 10/20)
“After months of talks, Democrats are edging closer to an agreement on what programs and policies to include in President Joe Biden’s massive plan to expand health and safety net programs and combat global warming.”
Under pressure, Democrats cut back spending (The Hill 10/20)
“Democratic lawmakers are swiftly cutting back their spending on the Build Back Better agenda after President Biden made clear to progressive lawmakers that the package will spend far less than they had hoped on key priorities. Progressive and centrist Democrats alike say a new reality is setting in after weeks of stalemate over the shape and size of the social spending bill, which had also brought work on an infrastructure measure passed by the Senate to an impasse.”
House passes bills to secure telecommunications infrastructure (The Hill 10/20)
“The House on Wednesday approved multiple bipartisan bills aimed at securing U.S. telecommunications systems against foreign interference, in particular against threats from China. The Secure Equipment Act, sponsored by House Minority Whip Steve Scalise (R-La.) and Rep. Anna Eshoo (D-Calif.), was approved by the House by a vote of 420-4, and would require the Federal Communications Commission (FCC) to take steps to block authorization of products from companies on the agency’s ‘covered list.’”
On Senate Floor, Portman Discusses Concerning Economic Trends and Why Bipartisan Infrastructure Bill Will Help (Portman Press Release 10/20)
“This evening on the Senate floor, Senator Portman spoke on the troubling trends that have come out recently showing that the U.S. economy is in bad shape. With the highest inflation rate in 13 years causing record prices for gas and other essentials, millions of jobs going unfilled, stagnant wages for workers, and global supply chain delays, everyday American families are struggling more and more.”
What Is Congress Even Doing Right Now? A Brief Guide. (New York Mag 10/19)
“As you are likely aware, this year Democrats in Congress are attempting to pass a bipartisan infrastructure bill and a massive reconciliation bill containing much of President Biden’s agenda, while simultaneously avoiding a debt-ceiling crisis and a government shutdown. What you may not know is what Congress is actually up to at the moment, as negotiations on these interlocking issues keep dragging on and their due dates are repeatedly pushed back.”
Manchin climate stance threatens to shatter infrastructure bargain (The Hill 10/19)
“Sen. Joe Manchin’s (D-W.Va.) refusal to support the centerpiece of President Biden’s climate agenda puts the Democrats’ entire infrastructure and social spending agenda at risk. Senate Majority Leader Charles Schumer’s (D-N.Y.) two-track strategy for passing Biden’s agenda was based on the expectation that Manchin would give ground to progressives in exchange for their support of the hard infrastructure bill that he and Sen. Kyrsten Sinema (D-Ariz.) negotiated with Republicans.”
Biden on Infrastructure Bill: Cut Duration, Not Number, of Programs (National Interest 10/19)
“Biden’s strategy appears to be a quiet deviation from the strategy endorsed by Speaker of the House Nancy Pelosi (D-CA), who has instead recommended focusing on a handful of programs and extending them for as long as possible. In a note to Democratic legislators on Monday, she endorsed ‘do[ing] fewer things well’ with regard to the bill.”
Democrats Aiming for Deal This Week on Biden Agenda, Senate Leader Says (Bloomberg 10/19)
“Senate Majority Leader Chuck Schumer said Tuesday that congressional Democrats aim to seal a deal this week on Joe Biden’s economic agenda, as feuding liberals and moderates prepare to meet with the president at the White House.”
Manchin says carbon tax ‘not on the board’ in U.S. spending bill talks (NASDAQ 10/19)
“U.S. Senator Joe Manchin said on Tuesday that he is not talking about a carbon tax in negotiations over the spending and infrastructure bills, even as some of his fellow Democrats in the Senate support it as a way to fight climate change. ‘The carbon tax is not on the board at all,’ said Manchin, a centrist from West Virginia, the top U.S. coal producing state after Wyoming.”
Manchin complicates reconciliation talks with climate objections (Politico 10/18)
“Sen. Joe Manchin (D-W.Va.) scrambled talks again over the weekend when he declared his opposition to the Clean Electricity Performance Program, a pillar of President Joe Biden’s plan to reduce greenhouse gas emissions to 50 percent of 2005 levels by 2030. The coal-state senator’s opposition has the White House scrambling to cobble together other programs that could achieve similar gains in time to show them off at the UN Climate Summit next month. Note: Manchin had not been shy about his distaste for the emissions reduction program.”
Warner wants quick infrastructure vote — with or without BBB (Politico 10/18)
“Sen. Mark Warner has started urging his colleagues to support a vote on the bipartisan infrastructure bill in the coming days — even if the Build Back Better bill isn’t ready yet. The Virginia Democrat, a Terry McAuliffe ally who recently started making the case in the media for such a move, spoke with Sen. Joe Manchin (D-W.Va.) about this idea over the weekend.”
Amtrak Hopes Infrastructure Bill Will Help Fund a Tunnel to Ease Delays on Northeast Corridor (WSJ 10/18)
“When the Baltimore and Potomac Railroad completed its 1.4-mile tunnel in 1873, a local newspaper hailed it as ‘one of the greatest enterprises of the kind that has ever been executed.’”
What’s actually in Biden’s Build Back Better bill? And how would it affect you? (The Guardian 10/18)
“In much of the press coverage of the fight over Joe Biden’s Build Back Better bill, politicians, pundits and media talking heads often focus on its $3.5tn price tag. But all the attention to the top-line figure ignores the huge implications of what is actually in the legislation – and how it could transform millions of Americans’ lives.”
Democrats opposed to Biden spending bill raise record funds (Financial Times 10/16)
“Moderate Democrats who have stood in the way of Joe Biden’s $3.5tn ‘Build Back Better’ agenda raised record sums of money in the third quarter, with big contributions from the oil and gas, pharmaceutical and financial services industries, filings show. Joe Manchin, the Democratic senator from West Virginia, and Kyrsten Sinema, the Democratic senator from Arizona, are the two main opponents to Biden’s plan to make massive investments in America’s social safety net.”
Biden’s electric vehicle plan includes expanding charging stations. (USA Today 10/16)
“President Joe Biden’s proposal to build thousands of electric vehicle charging stations could revolutionize the nation’s highway grid if Congress passes a bipartisan infrastructure bill that would spend $7.5 billion on the initiative.”
Pramila Jayapal says of reconciliation and infrastructure bills that Democrats “will get it done” (CNBC 10/15)
“Progressive Caucus Chair Congresswoman Pramila Jayapal maintains that child care, Medicare expansion, prescription drug price limits, climate change, immigration, and affordable housing will remain in the slimmed-down social spending bill being negotiated between the White House and congressional Democrats.”
Biden Backs Broad-Range Economic Plan With No 10-Year Guarantees (Bloomberg 10/15)
“President Joe Biden said he’d like to see his economic plan address a ‘whole range of issues,’ even if funding for individual provisions must be pared back or timed to expire to keep the legislation’s cost down.”
Sherrod Brown touts infrastructure bills during Gradall tour (TimesReporter 10/15)
“U.S. Sen. Sherrod Brown, D-Ohio, discussed the importance of passing infrastructure bills now before Congress when he made a visit to the Gradall Industries plant in New Philadelphia on Thursday. The senator highlighted his Buy America protections that he worked to include in the legislation.”
PAY-FORS
Sinema Agrees to Broad Tax Hike Outline to Fund Biden Agenda (BGov 10/21)
“Senator Kyrsten Sinema has agreed to raise tax revenue from companies and the wealthy to fully fund President Joe Biden’s economic agenda, according to a person familiar with the matter. The Arizona Democrat — who has opposed raising rates on corporations and individuals — will back ways of increasing revenue from domestic corporations, global companies, high net-worth individuals and through tax enforcement, according to the person who requested anonymity because the talks are private.”
Sinema’s Opposition Stymies Democrats’ Planned Tax-Rate Increases (Wall Street Journal 10/20)
“Sen. Kyrsten Sinema (D., Ariz.) has previously told lobbyists that she is opposed to any increase in those rates, according to a person familiar with her remarks, but her stance is now pushing Democrats to plan more seriously for a bill that doesn’t include those major revenue increases… Losing the rate increases would punch a significant hole in the Democrats’ plans for funding the package, now expected to cost around $2 trillion over a decade. The House’s corporate tax rate increase was projected to raise $540 billion over a decade, while the tax rate increases on ordinary income and capital gains would raise nearly $300 billion.”
Dems toil to save SALT after last-minute scare (Politico 10/20)
“The president suggested to the group of moderates that allowing more families to deduct their state and local taxes, known as SALT relief, may be left out of the party’s final $2 trillion package entirely. The proposed changes could amount to thousands of additional dollars in tax refunds per year to residents of states with high property taxes, such as New York, New Jersey and California. Senate Majority Leader Chuck Schumer was quickly pressed by House moderates on whether the SALT relief had been removed altogether. Within hours, Schumer was on the phone with White House officials, questioning whether Biden had cut out relief that’s a must for many members who represent the most affected states.”
Democrats Move to Break Stalemate on Biden Plan by Scaling Back (Bloomberg 10/19)
“Congressional Democrats made significant headway in breaking their stalemate on President Joe Biden’s economic agenda Tuesday by jettisoning or trimming portions of the multitrillion-dollar tax and spending package. The progress came after Biden met with representatives of both wings of the party at the White House on Tuesday and as Senate Majority Leader Chuck Schumer put pressure on Democrats to sew up a deal this week.”
Democrats brace for staredown over paid family medical leave (Axios 10/19)
“Senior House Democrats are braced for battle with the Senate over whether paid family medical leave — a key priority for progressives — will be included in President Biden’s final budget reconciliation bill, lawmakers and aides tell Axios. Why it matters: Sen. Joe Manchin (D-W.Va.) has indicated he wants to cut the program to reduce the bill’s price tag. ‘Paid family and medical leave must be in the final package,’ Rep. Richard Neal (D-Mass.), chairman of the House Ways and Means Committee, told Axios on Monday.”
Democrats raise proposed IRS bank reporting threshold to $10,000 from $600 (Reuters 10/19)
“Senior Democrats in Congress have agreed to raise their proposed tax reporting threshold for bank account inflows and outflows to $10,000 a year, with exemptions for wage income, from an earlier proposal of $600 that drew criticism for being too intrusive. U.S. Senate Finance Committee Chairman Ron Wyden on Tuesday said the new $10,000 Internal Revenue Service reporting threshold, to be included in Democrats’ sweeping ‘reconciliation’ social spending and tax hike legislation, was chosen after consultations with the U.S. Treasury because it is a level frequently used in other bank reporting requirements.”
Income test for Medicare dental under debate; gets pushback (ABC News 10/19)
“For more than 55 years, Medicare has followed a simple policy: covered benefits are the same, no matter if you’re rich, poor, or in-between. But as Democrats try to design a dental benefit for the program, one idea calls for limiting it based on income. The so-called ‘means test’ is drawing internal opposition from many Democratic lawmakers, as well as advocacy groups for older people, like AARP.”
Democrats pare back proposed IRS bank reporting requirements (Politico 10/19)
“The Treasury Department officially announced Tuesday that Democrats were narrowing the scope of a controversial proposal that would force banks and credit unions to give more account information to the IRS to help boost tax compliance. The new plan sets the threshold at $10,000, after discussions between congressional Democrats and the Biden administration, and would exempt certain income from wages or federal programs like Social Security.”
Biden’s climate agenda at risk as Democrats negotiate budget bill (CNBC 10/19)
“Democratic lawmakers are scrambling to negotiate alternative climate change proposals for President Joe Biden’s massive budget plan, following West Virginia Sen. Joe Manchin’s strong opposition to the plan’s core climate change strategy. Manchin, a moderate Democrat who can sink the bill provision the 50-50 split Senate, said he will not vote for more than $1.5 trillion in spending and told the White House he’s opposed to a clean electricity plan, a key part of the president’s climate agenda.”
Democrats Weigh Carbon Tax After Manchin Rejects Key Climate Provision (The New York Times 10/16)
“Some House and Senate Democrats, smarting from a move by Senator Joe Manchin III, Democrat of West Virginia, to kill a major element of President Biden’s climate plan, are switching to Plan B: a tax on carbon dioxide pollution. A carbon tax, in which polluting industries would pay a fee for every ton of carbon dioxide they emit, is seen by economists as the most effective way to cut the fossil fuel emissions that are heating the planet.”
Moderate Democrats, citing global pact, want ‘pause’ in international tax changes (Politico 10/15)
“A trio of House Democrats is asking party leaders to ‘pause’ their plans to raise taxes on big companies’ overseas profits, adding a new complication to Democrats’ negotiations over their next big legislative package. In a letter to House Speaker Nancy Pelosi obtained by POLITICO, the lawmakers say they first want to see how other countries implement a new agreement to create a global minimum tax on multinationals — something that could be years away.”
A New Way to Tax Global Corporations, Explained (Bloomberg 10/15)
“Years of negotiations have produced an agreement to overhaul the global tax system in ways that will change where and how some of the world’s largest companies are taxed. Getting almost 140 nations on board was a huge breakthrough, but the fight isn’t over.”
Fact check: Proposal to tax capital gains at death not included in infrastructure bill (USA Today 10/15)
“The claim: Estates will be taxed at 61% upon death under ‘part 2’ of infrastructure bill. As the federal infrastructure and reconciliation packages continue to be debated in Congress, some on social media claim the big price tag will be paid by sneaky taxes.”
U.S., European Nations Claim Progress on Path to Removing Digital Taxes (Wall Street Journal 10/14)
“The U.S. and five European countries have reached an agreement on how those countries’ digital-service taxes would be withdrawn as a broader international agreement moves forward, French Finance Minister Bruno Le Maire said on Thursday. The deal isn’t likely to yield an immediate withdrawal of those taxes because it is still linked to the broader global tax agreement being completed and implemented over the next few years. But having a path forward could ease tensions between the U.S. and France, Italy, the U.K., Austria and Spain.”
STATE & LOCAL NEWS
U.S. highway expansions increase traffic and pollution, environmental groups say (Thomson Reuters Foundation 10/20)
“U.S. policies of expanding highways to ease congestion are misguided and lead to an increase in traffic and pollution, environmental advocacy groups said, urging lawmakers to instead invest more money in public transit… The U.S. government plans to invest in further highway extensions. The largest chunk of a proposed $550 billion federal transportation program – $110 billion – would go towards funding roads, bridges and major infrastructure projects. The program is part of the $1 trillion bipartisan infrastructure deal currently stalled in Congress.”
Update on Valley Metro light rail expansion (ABC15 10/20)
“If you’ve been to downtown Phoenix lately, you’ve noticed lots of construction, as two Valley light rail expansion projects are currently underway. The light rail Northwest Extension Phase II will travel 1.6 miles from 19th Avenue and Dunlap to the old Metrocenter Mall area. Highlights include a bridge crossing I-17 and the first elevated light rail station… The project got a major boost this week when the United States Department of Transportation announced a $158 million Capital Investment Grant supporting Phoenix light rail is moving forward through Congress. Mayor Kate Gallego was ecstatic, releasing a statement: ‘Projections tell us this new section of rail will serve 5,700 daily riders, and that the majority of riders will come from households without cars, opening up new options for good jobs and a good education,’ Gallego said.”
Infrastructure projects addressed during Lunch with the Mayor (Herald-Whig 10/20)
“Planned infrastructure projects were among the first topics covered during a ‘Lunch with the Mayor’ event at Quincy City Hall on Wednesday, which may become a monthly gathering. Quincy Planning and Development Director Chuck Bevelheimer and Utilities and Engineering Director Jeffrey Conte both gave presentations about upcoming projects and timetables. Conte said about $45 million in capital spending has been committed for infrastructure projects in the 2020 and 2021 fiscal years. Currently, there are about $5 million in projects that have just been awarded or are about to be. Some of the upcoming road projects will include Monroe from 16th to 18th, Elm from Sixth to Seventh, Second from Oak to College, Spring from Second to Third and Elm from 14th to 15th, which experienced serious sinkholes due to a collapsed sewer. But Conte said one of the biggest long-term projects is lead service line replacement.”
City council discusses possible uses for COVID relief funds (MLT News 10/20)
“The Mountlake Terrace City Council continued discussions about possible uses of assistance funds received from the American Rescue Plan Act (ARPA) and also approved the conceptual illustration for Veterans Memorial Park at its Oct. 18 regular business meeting. Under ARPA, the City of Mountlake Terrace is eligible to receive nearly $6 million in COVID-19 pandemic relief funds. Half of that total was made available this summer and the remainder will be paid in mid-2022. Emergency relief funds available to state, local and tribal governments from ARPA can be used to address rising costs and falling revenues resulting from the pandemic. There is also additional money set aside for states’ education, rental assistance and other programs. Possible local government uses of the funds allowed for by ARPA include: Responding to the public health emergency caused by COVID-19; providing assistance to households, small businesses, and nonprofit organizations related to the negative economic impacts of the pandemic; aiding impacted industries such as tourism, travel, and hospitality; premium pay/hazard pay to eligible local government essential workers of up to $13 per hour, which cannot exceed $25,000 to any individual employee; grants to eligible private employers to provide hazard pay to essential workers; providing government services to the extent of the reduction in revenue of such cities/counties due to COVID-19, relative to their revenues collected in the most recent full fiscal year prior to the emergency. In Washington state, that would be the 2019 calendar year budget; making necessary investments in water, sewer and/or broadband infrastructure.”
Berks County officials outline process for American Rescue Plan spending (Reading Eagle 10/19)
“Berks County has never seen a flood of federal cash like this, and might not ever again. Huge amounts of cash have been funneled to governmental bodies like the county to help fight against and recover from the COVID pandemic. Most recently, Berks was allotted nearly $82 million through the American Rescue Plan. The county commissioners want to make sure that windfall is spent in a way that has the greatest possible impact. But the first decision they will have to make is determining how much of the federal money should be spent directly by the county, and then how much should be doled out to other organizations and groups.
State officials commit to spending $1.2 Billion on I-80 Corridor improvement project (Times Weekly 10/19)
“State officials visited Will County on Monday to recommit to a six-year plan aimed at a complete overhaul of the Interstate 80 corridor. It was back in 2019 when Will County legislators and local municipality and County officials, along with Pritzker proclaimed the I-80 reconstruction as the ‘Signature Project’ of Rebuild Illinois. The reconstruction of Interstate 80 from Minooka to New Lenox-received $1.2 billion from the state of Illinois through the Capital Plan.
Gov. Mills announces $139 million in spending as the first phase of Maine’s economic recovery plan (Maine Public 10/18)
“Gov. Janet Mills toured several businesses in Lewiston on Monday to promote the first round of investments in her nearly $1 billion Maine Jobs and Recovery Plan. The initiative was approved by the Legislature in July as part of a change to the state’s two-year budget and it may also prove useful as the democratic incumbent readies her campaign for a second term. Although Monday’s event wasn’t billed as an official campaign stop, it marked the third time in less than a week that the governor has hit the road to tout an achievement from her first term. Addressing reporters outside of an Italian eatery in the electorally crucial city of Lewiston, Mills noted that the state’s economy had fared better than most states during the pandemic and she credited her administration for having a plan ready to quickly distribute a significant influx of federal cash to further assist the state’s recovery. Mills said more help is on the way, including $300 million in workforce investments that include education and skills programs, housing, childcare assistance and worker recruitment… Mill said she hopes those initiatives will help to address the state’s labor shortage. Overall, Maine has received $4.5 billion in federal stimulus aid. Mills’ challenger, former Republican Gov. Paul LePage, described the influx of funds as ‘Washington welfare’ during his campaign kickoff last month. But Mills isn’t deterred, promising that additional state help will be forthcoming as she pursues a three-phased economic strategy of recovery, long-term growth and infrastructure spending.”
In his last budget, Allentown Mayor Ray O’Connell tries to keep taxes steady for third year in a row (The Morning Call 10/18)
“On Monday, O’Connell delivered his proposed $124.8 million budget. The 2022 spending plan holds the property tax rate stable at 7.31 mills and will not change the business privilege tax, the $52 local services tax or the refuse collection and stormwater management fees. The city does not anticipate any additional debt this year and does not expect to need to borrow money or tap into the city’s $17 million in cash reserves in 2022. The city received $57 million from the American Rescue Plan, which will cover many of the city’s expenses, allowing Allentown to keep existing revenue streams the same. City Council held a special meeting last week where O’Connell’s administration presented plans for a separate American Rescue Plan budget. O’Connell’s administration proposed using that money to invest in water main replacement, storm sewer repairs and filters for the city’s drinking water. The plan also creates a $3 million relief fund for small businesses, $4 million for nonprofits and a $4.7 million housing assistance program. The American Rescue Plan budget, if passed as it is drafted, would put $1.4 million to offset rising public safety costs.”
$10 million for Appleton’s library renovation, expansion project part of the city’s recommended 2022 budget (Post Crescent 10/18)
“The city’s 2022 budget recommended by Mayor Jake Woodford includes $10 million toward the $26.4 million renovation and expansion of the public library. Another $13.5 million would be needed for the library project in the 2023 budget. ‘It should come as no surprise that there’s money in this budget for the library, and there will be money in the next budget for the library,’ Woodford told The Post-Crescent. ‘That’s required us to be mindful of all the other projects in the queue for the city and to be careful with our overall level of spending.’ The proposed 2022 budget also sets categories for how Appleton would spend $8 million in federal aid from the American Rescue Plan Act. The amount is in addition to the $6.9 million that will be added to the 2021 budget. The city’s 2022 ARPA funds would be divided as follows: Housing affordability: $3 million, early childhood development: $1.5 million, local economic recovery: $1 million, social infrastructure, belonging and neighborhoods: $1 million, community wellness, mental health and violence prevention: $1 million, and arts, culture and educational institutions: $500,000.”
Arkansas-side Board to take up American Rescue Plan spending (Texarkana Gazette 10/16)
“During a regular meeting Monday, the city Board of Directors will consider a spending plan for more than $7.9 million in federal relief funds. The Board will vote on approving a budget for the money, awarded in the American Rescue Plan Act this spring. The city’s plan outlines how much of the sum will be allocated to various infrastructure projects and premium pay for employees. Two other resolutions would approve the extra pay and amend the city budget to account for it. The proposed budget would allocate $2.9 million for streets, $1.63 million for projects at Texarkana Regional Airport, $400,000 for premium pay, $1.72 million for Nix Creek sewer improvements, a little more than $471,000 for drainage infrastructure and more than $791,500 for administrative costs. The plan is one of three City Manager Jay Ellington and finance staff presented to the Board during a workshop meeting in August. The three options all included the same amounts for the airport and for administration but allocations in different proportions in the other categories. One rejected option allocated about $2.87 million for streets, $200,000 for premium pay, $1.9 million for Nix Creek and $500,000 for drainage. The other allocated $1 million for streets, $600,000 for premium pay, $1.52 million for Nix Creek and $2.37 million for drainage.”
Westchester County is proposing $476M in capital projects next year. See what’s planned (Iohud 10/14)
“Westchester County plans to allot $476 million on capital projects next year, including for county-owned attractions, affordable housing, the county airport and sewer infrastructure, County Executive George Latimer unveiled Thursday. The county executive’s proposed 2022 capital budget would also expend dollars to explore the future of the Westchester County Center, which hasn’t been used for recreation or events since the COVID-19 pandemic began.”
Lightfoot’s budget gets watchdog’s support—with a warning (Chicago Business 10/14)
“Laurence Msall, president of the Civic Federation, told the City Council that the city’s budget makes ‘prudent’ use of federal COVID relief funds to maintain city services and make needed infrastructure investments, but he’s still concerned about the city’s financial position in years to come, due to ‘ever-growing pension obligations,’ mounting debt and the uncertain path of the post-COVID recovery. “