NAfter months of arguing, the U.S. Congress has one of the president’s core domestic policy items Joe Biden Decided. A few weeks after the Senate, on Friday night (local time), the House of Representatives finally passed a major investment plan aimed at modernizing the country’s infrastructure. In the next few years, approximately 550 billion U.S. dollars (476 billion euros) of new investment in infrastructure are planned. Including funds from the previous budget, the total value of the plan is more than one trillion U.S. dollars. Biden’s Democrats have a fierce dispute over the second set of investment plans and have long delayed infrastructure plans.
In the next few years, billions of infrastructure will be used for roads, bridges, ports, airports, local transportation and railways. Biden ranks climate protection as a top priority and should also benefit from some projects.
Pressure from the left in the party
In the next few years, about 110 billion U.S. dollars will flow into the expansion or transformation of roads and bridges. Approximately US$39 billion is spent on local public transportation, and another US$66 billion is spent on the rail network. Funds have also been earmarked for the expansion of electric vehicle charging stations and the promotion of electric buses. Calculate the total amount of ports and airports to be 42 billion U.S. dollars. The package also aims to fund the expansion of high-speed Internet connections and the improvement of water supply, including the replacement of all lead pipes. Approximately 65 billion U.S. dollars will also flow into the modernization of power infrastructure.
When Biden took office, he proposed a plan to invest billions of dollars in the country’s infrastructure and welfare system. After long negotiations, the infrastructure package was passed in the Senate in August. But the final vote in the House of Representatives has not passed. This was greatly delayed because the left-wing Democrats of the party used voting as a bargaining chip in internal negotiations to conduct internal negotiations on a second and even larger social and climate protection investment package. This was met within the Democratic Party. There was some resistance. Given the majority of Democrats in both houses of Congress, Biden relied on the unity of his team to implement his plan. This is a matter of months.
Financing social welfare through tax increases
The second trillion-dollar package provides for the expansion of social welfare in the country and the provision of large sums of money for the response to the climate crisis-funded by increased taxes for businesses and high-income earners and more consistent collection of taxes payable. Moderate Democrats expressed concern about high spending and called for cuts in the package. Left-wing democrats want to push for the largest possible investment in society and climate change, and they threaten to block the infrastructure package unless a larger second package is also obtained. The stalemate between the parties dragged on for several months.
At the end of October, Biden finally put forward a proposal for a streamlined social and climate program-the amount is 1.75, instead of the original target of 3.5 trillion US dollars. This has brought new trends to disputes within the party. However, Biden has to continue to worry about his social affairs and climate package.
