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

Trump Signs Proclamation Banning Travel From 12 Countries, CBS News Reports

DON'T MISS

Sunnyvale Pitmaster Smokes Fresno BBQ Competition for Golden Ticket to World Championships

DON'T MISS

What We Know About the Colorado Attack on Israeli Hostage Demonstrators

DON'T MISS

Visalia Motorists Take Note: Traffic Shift Coming to Riggin Avenue

DON'T MISS

Really, Secretary Rubio? I’m Lying About the Kids Dying Under Trump?

DON'T MISS

Judge Denies Release in Caleb Quick Killing. Defense Cites Alleged Assaults by Victim

DON'T MISS

Nebraska Is the Latest State to Ban Transgender Students From Girls’ Sports

DON'T MISS

US Vetoes UN Security Council Resolution Demanding an Immediate Gaza Ceasefire

DON'T MISS

International Basketball Comes to Fresno: Armenia vs. Costa Rica

DON'T MISS

Wired Wednesday: A New Research Hub in Southeast Fresno?

UP NEXT

Trump’s Big Bill Will Cut Taxes by $3.7T and Add $2.4T to Deficit, Budget Office Says

UP NEXT

Dollar Slips After Data Disappoints, Trump Calls for Rate Cut

UP NEXT

Millions Invested in Land for Innovation Village. Will It Be a Fresno Game-Changer?

UP NEXT

Wall Street Opens Mixed as Investors Await Trade Negotiations

UP NEXT

Wall Street Opens Lower After Trump’s Steel Tariff Threat

UP NEXT

Trump Trade War Has Already Had Huge Effect on California Ports

UP NEXT

Spike in Steel Tariffs Could Imperil Trump Promise of Lower Grocery Prices

UP NEXT

How Gentrification Is Killing the Bus: California’s Rising Rents Are Pushing Out Commuters

UP NEXT

Oreo Maker Mondelez Sues Aldi, Alleging Grocery Chain Copies Its Packaging to Confuse Customers

UP NEXT

Wall Street Falls as Trump Says China Violated Tariff Terms

Visalia Motorists Take Note: Traffic Shift Coming to Riggin Avenue

14 hours ago

Really, Secretary Rubio? I’m Lying About the Kids Dying Under Trump?

15 hours ago

Judge Denies Release in Caleb Quick Killing. Defense Cites Alleged Assaults by Victim

15 hours ago

Nebraska Is the Latest State to Ban Transgender Students From Girls’ Sports

15 hours ago

US Vetoes UN Security Council Resolution Demanding an Immediate Gaza Ceasefire

15 hours ago

International Basketball Comes to Fresno: Armenia vs. Costa Rica

17 hours ago

Wired Wednesday: A New Research Hub in Southeast Fresno?

18 hours ago

Fresno’s Southeast Plan Has a $2.2B Price Tag for Phase 1. Can the City Afford It?

18 hours ago

Trump: Putin Said Russia Would Respond to Ukraine Drone Attacks

19 hours ago

It’s Expensive to Become a Teacher in California. This Bill Would Pay Those Who Try

19 hours ago

Trump Signs Proclamation Banning Travel From 12 Countries, CBS News Reports

U.S. President Donald Trump signed a proclamation banning travel from certain countries, CBS News reported on Wednesday, citing administrati...

12 hours ago

12 hours ago

Trump Signs Proclamation Banning Travel From 12 Countries, CBS News Reports

13 hours ago

Sunnyvale Pitmaster Smokes Fresno BBQ Competition for Golden Ticket to World Championships

14 hours ago

What We Know About the Colorado Attack on Israeli Hostage Demonstrators

14 hours ago

Visalia Motorists Take Note: Traffic Shift Coming to Riggin Avenue

15 hours ago

Really, Secretary Rubio? I’m Lying About the Kids Dying Under Trump?

Fresno clovis caleb quick
15 hours ago

Judge Denies Release in Caleb Quick Killing. Defense Cites Alleged Assaults by Victim

15 hours ago

Nebraska Is the Latest State to Ban Transgender Students From Girls’ Sports

15 hours ago

US Vetoes UN Security Council Resolution Demanding an Immediate Gaza Ceasefire

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

Search

Send this to a friend