This is a first step, but tough negotiations are still to come. Joe Biden on Thursday announced an agreement with a group of ten Republican and Democratic senators on a plan for massive investments in infrastructure, recording clear success after months of negotiations, although he will still have to secure the support of the wing of his party and hope that five more Republicans vote in favor.
“We have an agreement,” said Biden after the highly anticipated meeting. Rare image, he himself went out to announce it on the forecourt of the White House, in the presence of elected officials.
This plan is based on more than $ 1,200 billion in investments over eight years (973 billion over five years and the remainder optional over three additional years), said the White House. In particular: 312 billion in transport, including roads and airports, and 266 billion in other types of infrastructure such as those allowing water transport, or high-speed internet.
No tax increases
Republicans and Democrats have come to an agreement on their biggest obstacle so far: funding this massive project. Republicans had said they were staunchly opposed to a hike in business taxes, originally proposed by Joe Biden, while the White House refused to introduce new taxes that would hit homes earning less than $ 400,000 a year, as with a tax on gasoline.
In the end, the plan intends in particular to strengthen tax inspections to “reduce” the amount of unpaid taxes and redirect funds released in 2020 to fight the pandemic that have not been used, among other measures. For the Democratic President, elected on the promise to reconcile America, this agreement demonstrates that “American democracy works and can get results.”
Path still uncertain
If it represents a major step forward, it does not however mark the end of the discussions. “I have no guarantee” of having the votes to pass this project through the Senate, Biden admitted, while showing his optimism. “Neither party got everything they wanted,” he said, assuring that this was the price to pay to achieve consensus.
The two Democratic majorities leaders in Congress stressed Thursday that the plan must go hand in hand with the development of another large bill that would include other priorities of the Biden administration. After months of discussions, the negotiations are moving towards two parallel tracks. On the one hand, this plan on “traditional” infrastructures, bridges, roads, airports, etc. And on the other, the Biden priorities that Democrats have dubbed “family infrastructure” or “human”.
The Democratic leader of the Senate, Chuck Schumer, told him Thursday morning “encouraged” by the agreement between senators, while recalling that he still intended to advance on this double track of “linked” projects: on the one hand l agreement between Republicans and Democrats on infrastructure, and on the other a complex parliamentary path that would allow Democrats to adopt, with their only narrow majority in the Senate, the other component. Schumer plans to hold the first plenary procedural votes on the infrastructure deal as soon as senators return in July. The session will be adjourned in the upper house Thursday evening until July 12.