As Biden heads infrastructure negotiations, the prospects for a bipartisan agreement seems grim

The US President Joe Biden’s aim of finding a compromise with congressional Republicans to endorse any, if not all, of his expansive infrastructure plan is running out of time this week. Following weeks of outreach by White House aides to Capitol Hill politicians, Ex-President Obama is having high-profile meetings this week with key senators, both Republicans and Democrats, whose input could form the outlines of any final bill. There are some reasons to be cautiously hopeful that Biden and Republicans will negotiate a compromise, especially if he decides to break the huge $1.8 trillion American Jobs Plan package into two or three different bills.

However, the partisan rift over how to fund much-needed infrastructure projects grows wider by the day. Democrats have so far opposed a Republican attempt to finance the scheme by usage fees, claiming that it amounts to a tax increase on middle-class Americans who travel. Instead, Democrats consider hiking the corporate tax rate and eliminating loopholes, potentially making businesses and the wealthiest Americans foot the bill for the initiative. Republicans, on the other hand, argue any amendments to the low tax rates passed in their 2017 tax-cut package are a no-go.

But where does this leave the chances of a bipartisan bill?

For now, there are no visible points of overlap between the Democratic and Republican financing programmes, according to advocates and observers from both sides of the aisle. For any other president, any dreams of a reconciliation bill will be practically dashed. But, they say, the math is different now that Biden is in control.  “We’ve never seen a president devote this much time and political resources on infrastructure,” said Kevin DeGood, director of the democratic Center for American Progress’ infrastructure policy unit. On Monday, White House press secretary Jen Psaki reiterated that Biden is leading the hunt for a bipartisan solution. On Thursday, Biden will consult with six Republican senators, including Capito, to discuss a possible solution. Capito, a West Virginia Republican, led a $568 billion GOP infrastructure plan last month. Even, there are concerns that Biden’s passion for an agreement would be enough to mask the profound disparities between the two parties’ interests.

‘Extremely distant’

Biden’s budget includes hundreds of billions of dollars in support for conventional capital programmes including road and bridge maintenance. However, it also requires billions of dollars more in funding to upgrade the power grid, provide services for the aged and disabled, invest in subsidised housing, and expand internet service. And, so far, Biden has refused to commit to any support for the initiative that would add to the federal budget, demanding that any clauses of a bill be paid for in advance.

Republicans have taken advantage of Biden’s broad concept of “infrastructure” to reject much of his initiative. Republican senators unveiled the blueprint for a counteroffer infrastructure bill in April, which will cost about a fifth of what Biden proposes. Republicans also argue that Biden’s reluctance to finance the initiative by consumer fees, or deficit spending, is unrealistic. “I don’t get that infrastructure has to be accounted for in the bill,” said Republican strategist Steel. “With low interest rates right now, why should it be illegal to make these improvements that will expand the economy and fund them with any spending?” he said.

Steel said that Republicans are unified in their opposition to the Democratic effort to lift the corporation tax rate. “I don’t expect any tax increases. Not at all. And Republicans will see closing some tax loopholes as a tax increase,” he predicted. If talks resume this week, Biden has stated that he has only two red lines: inaction and tax increases on those with less than $400,000.

However, many rank-and-file Democrats remain sceptical of their Republican colleagues’ motivations. “Dealing about infrastructure and Republicans reminds me of Lucy and the game, with Charlie Brown.” “Every time we get by, they sort of take the football away,” said Rep. Mikie Sherrill, D-NJ, on MSNBC Monday. Sherrill also mentioned that her question is “less about the top line [funding] amount and more about what’s in the package.” The more the talks go on, the more likely it is that unrelated incidents will tip Biden’s hand one way or another.

External powers are at work

The administration’s latest argument on why a comprehensive work growth bill is required has been bolstered by April’s poor job figures, which were released on Friday. According to DeGood at the Center for American Progress, April’s weak employment growth provides Democrats with “much more incentive to stick with this fight, because this is their flagship domestic job development bill.” Biden has also stated that 75 percent of the jobs created by his American Jobs Plan will be for individuals with just a high school diploma.

The announcement that one of America’s biggest oil pipeline companies, Colonial Pipeline, has been crippled by a ransomware cyberattack has also influenced national discourse about infrastructure this week. According to Transportation Secretary Pete Buttigieg, who spoke to CNBC on Monday, the attack highlights the unique shortcomings of our existing system and why it needs to be strengthened. “Twentieth-century infrastructure would be particularly weak, which is why we need to prepare to future-proof the assets that we have around the country,” Buttigieg said. Biden also set Memorial Day as an unofficial deadline for finding an agreement with Republicans.

If Biden and congressional Democrats are unable to find a consensus agreement on the bill, they have stated that they would use budget reconciliation to approve an infrastructure package on a solely party-line ballot, which takes just 51 votes in the Senate.

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