What's Delaying Infrastructure Talks Now?

Negotiators are working to resolve two issues standing in the way of a bipartisan infrastructure package and hoping to vote on proceeding next week while a new poll shows support for infrastructure funding is growing nationwide

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This week, Senate Majority Leader Chuck Schumer (D-NY) attempted to begin floor debate on the bipartisan infrastructure package that was agreed to last month by a group of senators and President Joe Biden. However, with last-minute negotiations ongoing, Republican senators voted unanimously against starting debate. As such, the procedural motion failed to get the 60 votes necessary to move forward.

Disagreements over transit funding and how to handle a broadband internet component are said to have delayed progress moving forward. After the vote failed, the group of senators negotiating the package released the following statement:

"We have made significant progress and are close to a final agreement. We will continue working hard to ensure we get this critical legislation right – and are optimistic that we will finalize, and be prepared to advance, this historic bipartisan proposal strengthen America’s infrastructure and create good-paying jobs in the coming days. We appreciate our colleagues on both sides of the aisle, and the administration, working with us to get this done for the American people.”

A bipartisan group of Senate negotiators who have been working with the White House for months to fill out a $1.2 trillion, eight-year spending proposal say they’re on track to get it done next week, but frustrations are starting to mount as a final deal eludes them.

Why the Vote Failed & What's Next

The vote which failed on Wednesday was to move bipartisan infrastructure talks forward. Republicans did not vote in favor of moving negotiations ahead as the bill was not finalized. It's unclear when the vote will proceed but lawmakers say the impasse over transit remains a tough issue to resolve.

Sen. Pat Toomey (R-PA), the ranking Republican on the Senate Banking Committee, which has jurisdiction over transit, has balked at the bipartisan group’s proposal to spend $48.5 billion on public transit, on top of the traditional 80-20 allocation of highway funding between highways and transit priorities. Toomey says a huge prospective infusion of money for public transit would set a new precedent shifting the traditional allocation of resources from an 80-20 split in favor of highways to closer to 70-30. He also points out there is nearly $40 billion in unspent COVID-19 relief funds for transit.

There are suggestions that transit funding measures could suggested it could be dropped altogether to avoid further slowing the deal

Biden has been in touch with both Democrats and Republicans for several days, and his outreach will continue “until he has both pieces of legislation on his desk to sign them into law,” White House Press Secretary Jen Psaki said.

While Biden proposes paying for his proposals with a tax hike on corporations and wealthy Americans who earn more than $400,000 a year, the bipartisan group has been working almost around the clock to figure out a compromise way to pay for its package, having dashed ideas for boosting the gas tax drivers pay at the pump or strengthening the Internal Revenue Service to go after tax scofflaws.

Instead, senators in the bipartisan group are considering rolling back a Trump-era rule on pharmaceutical rebates that could bring in some $170 billion to be used for infrastructure.

The measure, when finalized, is expected to include a new five-year surface transportation reauthorization bill that dramatically increases highway and public transportation investment. The package will also likely include substantial investments into airport, water and other infrastructure categories. If the proposal fizzles out, Democrats will have to consider whether to pair it with their $3.5 trillion plan to expand the social safety net.

Democrats have undertaken a tricky strategy to get both planks of their agenda through Congress. They aim to pass the physical infrastructure plan with Republican votes, then expand the social safety net without GOP support.

Senate Majority Leader Chuck Schumer, D-N.Y., has said he wants to make progress on both fronts before the chamber leaves Washington in August. He aims to pass the bipartisan infrastructure plan and approve the budget resolution that would allow Democrats to get their bill through the evenly split Senate with a simple majority.

House Speaker Nancy Pelosi (D-CA) has said she will not take up either bill until the Senate passes both.

Public Support for Infrastructure GrowingAn AP/NORC poll shows a majority of Americans — from both parties — support aspects of President Biden’s infrastructure plan.An AP/NORC poll shows a majority of Americans — from both parties — support aspects of President Biden’s infrastructure plan.AP-NORC Center for Public Affairs Research. (July, 2021).“Views on the Infrastructure Bill”

Despite the uncertainty in Washington, a new poll has been released showing over half of Americans, 59%, support funding for infrastructure. Respondents said that improving infrastructure should be a priority in Washington, and they support financing the construction by taxing individuals and corporations with a net income of more than $400,000.

Some of the categories of possible infrastructure projects that garner the most bipartisan support include more funding for roads, bridges and shipping ports. Some 79 percent of Republican-identifying respondents reported favoring these infrastructural improvements, with 87 percent of Democrat-identifying respondents agreeing.

And 80 percent of Independent-voting respondents also supported these projects, bringing the overall average percentage of support to a strong majority of 83.

Overall, 55% of Americans approve of how President Biden is handling infrastructure.  However, as with most measurements of presidential performance, there are strong partisan divisions.  Eighty-three percent of Democrats approve of Biden’s handling of infrastructure, 78% of Republicans disapprove. There is also a partisan divide on how to pay for improvements to the nation’s infrastructure. More than 80% of Democrats support raising taxes on corporations and wealthy individuals, while only about 40% of Republicans agree. 

ForConstructionPros.com will continue to provide updates on infrastructure funding packages emerging from Washington. 

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