This past week President Biden met with Republican and Democratic leaders to discuss how to move forward on an infrastructure bill.

 

The negotiations are vital because, over the remaining weeks of May, such discussions will determine how Congress proceeds this summer on his two major reforms on infrastructure and the American Family Plan. Some observers suggest the possibility that the President could get an agreement with Republicans to address a narrowed-down infrastructure bill that would address some of the more “traditional” infrastructures such as highways, bridges, and maybe a few add ons such as broadband and water and sewer systems. If that were the case, that package could pass with both Democrats and some Republicans. That would also mean the remaining items such as the Child Tax Credit (CTC), Child Care, and infrastructure around school construction and other parts could be rolled into a reconciliation bill that would take 50 senators plus the Vice President’s vote to pass.

 

One of the hang-ups on such a traditional infrastructure bill is how to pay for it. Republicans are adamant on not rolling back of any Trump tax cuts, even for very high-income individuals. That leaves few options for transportation since Congress has appeared to turn away from a gas and fuel tax last raised by 4.3 cents in 1993.

 

By the end of this month, it may be decision time for the President and his Democratic counterparts in Congress. Can they get a partial bipartisan effort or go it alone on everything? May 27, 2021, is now the deadline for the release of the complete Biden 2022 appropriations. This is the detailed line by line budget by the Administration, delayed by the pandemic and the beginning of a new administration.  It could provide some insight how the annual appropriations will align with the President’s infrastructure/family plans.