Please ensure Javascript is enabled for purposes of website accessibility
Biden Wants Spending to Boost Economy, but GOP to Block Vote
gvw_ap_news
By Associated Press
Published 4 years ago on
July 20, 2021

Share

WASHINGTON — President Joe Biden said his infrastructure and families agenda must be passed to sustain the economic momentum of his first six months in office, aiming to set the tone for a crucial week of congressional negotiations on the two bills.

But a Wednesday deadline set by Senate Majority Leader Chuck Schumer on the bipartisan infrastructure bill was in doubt as Republicans signaled they would block a procedural vote, for now, while details are still being worked out. Senators are wrangling over how to pay for the new spending in the $1 trillion package of highway, water system and other public works projects.

At the same time, Democrats are developing the particulars of a separate bill that would invest a stunning $3.5 trillion nationwide across Americans’ lives — with support for families, education, climate resiliency and other priorities that they aim to ultimately pass with solely Democratic support. Democrats hope to show progress on that bill before lawmakers leave Washington for their recess in August.

‘Blue-Collar Blueprint’ for Rebuilding America’s Economy

The legislative maneuvering marks a major test of Biden’s ability to deliver on a massive package of economic promises and reforms he made during his campaign. He’s been putting public pressure on lawmakers with a series of speeches highlighting the strengthening economy while emphasizing the need for further investment to continue that growth and to bolster the middle class. Biden’s top aides met with senators late Monday.

“What the best companies do — and what we as a country should do — is make smart, sustainable investments with appropriate financing,” the president said Monday at the White House.

Calling his plans a “blue-collar blueprint for building an American economy back,” Biden said, “This is the best strategy to create millions of jobs and lift up middle class families, grow wages and keep prices affordable for the long term.”

The economy has come back to life as more Americans have gotten vaccinated and Biden’s earlier $1.9 trillion relief package has coursed through the country. Employers have added an average of nearly 543,000 jobs a month since January, with Federal Reserve officials anticipating overall economic growth of roughly 7% this year that would be the highest since 1984. Yet there is also uncertainty as employers say they’re struggling to find workers at the current pay levels and inflation concerns have yet to fully abate.

McConnell Denounces Biden’s ‘Spending Spree’

Senate Republican leader Mitch McConnell decried the “spending spree” as “the last thing American families need.”

McConnell and outside groups including the conservative Americans for Prosperity encouraged Republicans to vote against proceeding to the bipartisan package until they have more details. “I think we need to see the bill before we decide whether or not to vote for it,” McConnell told reporters at the Capitol.

The president is pushing for more than $4 trillion in combined spending with the hopes of prolonging solid economic gains. Biden’s $3.5 trillion package focused on climate, schools and families will need support from all 50 Senate Democrats to clear a party line vote.

Key to Biden’s message is that the growth is occurring as intended and helping the U.S. middle class. Yet much of it is expected to fade as the economy fully heals from the pandemic.

But the $973 billion infrastructure deal Biden struck with a group of Republican and Democratic senators lacks a clear plan for how to pay for it as GOP lawmakers have backed away from tax compliance enforcement by the IRS.

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. No decisions have yet been made as senators huddled late Monday with administration officials on next steps.

Questions on How to Pay for Bill Remain Unanswered

Sen. Rob Portman of Ohio, a chief Republican negotiator, said they resolved half of the estimated two dozen unresolved issues after a marathon round of talks late Sunday with the White House.

“It’s absurd to move forward with a vote on something that is not yet formulated,” he said.

Over the weekend Republicans chafed at the prospect of a Wednesday vote, noting that major questions over how to pay for the spending still remain unanswered. The package needs 60 votes to defeat a GOP filibuster, a delaying tactic, and pass the Senate — which means at least 10 Republicans have to join all 50 Democrats in supporting it. With Republicans still expressing concerns over the package, the success of the Wednesday procedural vote remains in doubt.

“It’s time to begin the debate,” Schumer said Monday, setting up the votes.

Sen. Jon Tester of Montana, a key Democratic negotiator, said if Republicans block the vote with a filibuster “that’s a problem. Hopefully, people will be smarter than that.”

White House press secretary Jen Psaki dismissed questions Monday over the future of the bill and what the administration would do if Wednesday’s vote is unsuccessful.

“Two days is a lifetime in Washington, so I don’t think we’re going to make predictions of the death of the infrastructure package,” she told reporters.

Biden Pushes Back Against Critics

Biden also used his Monday remarks to push back against Republican critics of his plans who argue massive federal investments in the economy will accelerate inflation.

Consumer prices climbed 5.4% for the year that ended in June, the highest annual increase since August 2008. Higher inflation can erode the wages of workers and ultimately hurt economic growth.

Biden said Monday that his proposed investments would help rebuild U.S. supply chains and ease pressures on U.S. production that some economists say have contributed to inflation.

“If we make prudent, multi-year investments in better roads, bridges, transit systems and high speed internet, a modern resilient electric grid, here’s what will happen: It breaks up the bottlenecks in our economy,” he said.

“These steps will enhance our productivity, raising wages without raising prices. That won’t increase inflation, it’ll take the pressure off of inflation,” Biden added.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

DON'T MISS

Investors Buy Fig Garden Village. How Much Did It Sell For?

DON'T MISS

Fresno County DA Wants Teens Tried as Adults in Caleb Quick Murder

DON'T MISS

State Farm Wins First-Ever Emergency Rate Hike in California

DON'T MISS

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

DON'T MISS

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

DON'T MISS

Fresno Police Seek Public’s Help Identifying Shooting Suspect

DON'T MISS

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

DON'T MISS

Karbassi Running for Fresno County Elections Clerk, Says He Can ‘Do Better’

DON'T MISS

Global Eggs Completes Acquisition in US, Closes New Deal in Europe

UP NEXT

US Inflation Stable Before Expected Jump From Tariffs

UP NEXT

Young People Drive Fresno to CA’s Top Job Growth: Wells Fargo Study

UP NEXT

Fresno’s New Economic Development Leader Has Boomtown Expertise

UP NEXT

Economic Jitters and Soaring Gold Prices Create a Frenzy for US Jewelry Merchants

UP NEXT

S&P 500 Jumps to Over Two-Month High

UP NEXT

US-China Tariff Delay Gives Fed Fresh Reason to Sit Tight on Rates

UP NEXT

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

UP NEXT

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

UP NEXT

Tariff Talks Begin Between US and Chinese Officials in Geneva

UP NEXT

Other States Are Showing California How to Protect Its Budget Without Cutting Needed Services

State Farm Wins First-Ever Emergency Rate Hike in California

6 hours ago

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

7 hours ago

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

7 hours ago

Fresno Police Seek Public’s Help Identifying Shooting Suspect

7 hours ago

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

7 hours ago

Karbassi Running for Fresno County Elections Clerk, Says He Can ‘Do Better’

8 hours ago

Global Eggs Completes Acquisition in US, Closes New Deal in Europe

10 hours ago

‘I Never Said He Called My Son the N-Word.’ Fresno Unified Trustee Thomas Tries to Erase Accusation Against Former Bullard Coach

11 hours ago

UnitedHealth Group CEO Steps Down as Company Lowers, Then Withdraws Financial Outlook for 2025

11 hours ago

FDA and RFK Jr. Aim to Remove Ingestible Fluoride Products Used to Protect Kids’ Teeth

11 hours ago

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

A 43-year-old Fresno man identified as a certified substitute teacher with the Fresno Unified School District has been arrested for allegedl...

3 hours ago

Carlos Gonzalez, 43, of Fresno, a substitute teacher at Fresno Unified School District has been arrested for allegedly attempting to meet a minor for sex after contacting the child through a messaging app, prompting authorities to urge potential victims to come forward. (Fresno County SO)
3 hours ago

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

5 hours ago

Investors Buy Fig Garden Village. How Much Did It Sell For?

Fresno clovis caleb quick
6 hours ago

Fresno County DA Wants Teens Tried as Adults in Caleb Quick Murder

6 hours ago

State Farm Wins First-Ever Emergency Rate Hike in California

7 hours ago

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

7 hours ago

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

Fresno police are seeking help identifying a suspect caught on video after a shooting near First Street and Belmont Avenue left one person injured on Sunday. May 11, 2025. (Fresno PD)
7 hours ago

Fresno Police Seek Public’s Help Identifying Shooting Suspect

7 hours ago

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

Help continue the work that gets you the news that matters most.

Search

Send this to a friend