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Biden infrastructure plan would minimize U.S. debt, add to GDP: Wharton research

Biden infrastructure plan would cut U.S. debt, add to GDP: Wharton study

U.S. President Joe Biden stops at La Crosse Municipal Transit Utility in La Crosse, Wisconsin, the United States, on Jan.

Kevin Lemarque | Reuters

A bipartisan infrastructure deal by President Joe Biden and a group of senators would not only help economic growth but also reduce national debt, according to a new study by the University of Pennsylvania’s Wharton School.

Wharton School researchers said the additional $ 579 billion in new infrastructure spending would increase domestic production by 0.1% and reduce US debt by 0.9% by 2050.

“Over time, as new spending declines, IRS enforcement continues, and revenue increases from increased production, national debt will decrease 0.4 percent from baseline, and 0.9 percent in 2040 and 2050, respectively “Wrote the Wharton team.

Speaking to CNBC Tuesday, Wharton’s chief economist Jon Huntley said that improvements in public capital (roads, bridges, and other physical infrastructure) make private capital (trucks and trains moving goods for businesses) more productive over time .

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Fewer potholes and disruptions in rail traffic add up to US economic activity over the years and encourage further private sector investment.

The projected increase in GDP and the simultaneous reduction in national debt, albeit modest, is likely welcome news for the Democrats and Republicans who brokered the deal with the White House.

The entire package, approved by the bipartisan senatorial group and the Biden administration, approves spending of $ 1.2 trillion over the next five years. The additional $ 579 billion includes more than $ 300 billion for transportation projects, while $ 266 billion would be allocated to investments in digital, disaster, environmental and energy infrastructure.

Biden is in the middle of a road show promoting the plan and told the Wisconsin crowds Tuesday that it will “change the world for families” in Badger State.

The deal will “ensure” [high speed broadband] is available in every American household, including the 35% of rural families who currently forego it, “he added. The president is expected to travel to Michigan this weekend to further praise the deal.

Still, Biden’s transnational mission to generate support for the measure underscores the fragility of even bipartisan efforts to repair the country’s transport infrastructure. The president himself nearly doomed the deal last week when he said he would veto the infrastructure bill if it were not passed along with a larger bill backed entirely by Democrats.

He later withdrew from that promise when it became clear that the comments had angered Republicans.

The latest Wharton study comes months after the school analyzed the Biden government’s first infrastructure proposal, called the American Jobs Plan. This original plan included spending approximately $ 2 trillion over eight years and was estimated by Wharton to reduce economic output by 0.8% in 2050.

When asked why the bipartisan plan would increase GDP over the next 29 years while the original Biden plan would not, Huntley stated that the latest legislation does not include changes to the corporate tax rate and no minimum tax on book income.

By removing corporate tax hikes in the bipartisan plan, legislators have reduced negative tax distortions that would ultimately have reduced corporate investment incentives and household savings incentives.

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Biden Heads to Wisconsin to Promote His Infrastructure Deal

Biden Heads to Wisconsin to Sell His Infrastructure Deal

President Biden began a national tour in Wisconsin Tuesday to educate voters about the bipartisan infrastructure deal announced by the President and Middle Senators last week.

Mr Biden used his speech in La Crosse, Wisconsin, to highlight several aspects of the deal – which would increase federal spending on physical infrastructure by $ 579 billion, the largest such increase in decades. He portrayed the deal as a deal that would improve the quality of life for Wisconsin residents, including by increasing the use of broadband internet in rural areas, where about 35 percent of families lack reliable internet, according to the White House.

“This bipartisan breakthrough is a big deal for the American people,” Biden said, predicting the deal would create jobs that did not require a college degree. “This is a blueprint for rebuilding America.”

Mr Biden pledged to replace the nearly 80,000 lead water pipes in Milwaukee, and cited spending on road and bridge repairs to reduce traffic for drivers across the country, the equivalent of an annual loss of $ 1,000 for the average American because of lost time.

The president and his staff have argued aggressively over the past few days that the deal would be a huge step forward for the nation in key infrastructure areas, as part of a delicate effort to sell Democrats in the House and Senate for the merits of a deal fell well short of Mr. Biden’s initial $ 2.3 trillion US employment plan. The deal leaves out entire categories of spending on climate change and investing in home nursing for the elderly and disabled.

The president called the deal the largest federal infrastructure move since President Dwight D. Eisenhower signed the law to create the interstate highway system 65 years ago. “This is a generational investment – a generational investment – to modernize our infrastructure,” he said, “to create millions of well-paid jobs.”

The tour is also designed to reassure Republicans that Mr Biden is committed to the agreement. Mr Biden told reporters Thursday that he would not sign the bipartisan agreement unless it was accompanied by a second, partisan bill that includes much of Mr Biden’s remaining $ 4 trillion economic agenda, which is a hectic weekend for the White House sparked some Republicans questioning whether the deal could survive.

On Sunday, Mr Biden released a statement saying he did not mean to imply that he would veto the bipartisan agreement and pledged to campaign aggressively to get it passed. This worried the progressives, who are counting on the second passage of the party law.

Alluding to the intricate politics of the two economic laws, Mr. Biden also used the Wisconsin speech to highlight much of the second half of his agenda that was excluded from the deal, including investments in housing, childcare, tax loans for parents, child poverty aim to combat, and invest heavily in public education.

“I will continue to point out that critical investments are still needed,” he said.

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Moody’s on influence of Covid-led disruptions on India’s infrastructure corporations

Moody's on impact of Covid-led disruptions on India's infrastructure firms

A container ship has docked in the Indian Adani Port Special Economic Zone (APSEZ) in Mundra, India.

Sam Panthaky | AFP | Getty Images

India’s second wave of the coronavirus outbreak will affect the country’s infrastructure companies to varying degrees, according to Moody’s Investors Service.

Energy companies and ports are expected to withstand the effects of pandemic disruption compared to airports and toll road operators, the rating agency said in a recently released report.

The South Asian country suffered a devastating second wave as reported coronavirus cases rose sharply between February and early May. As a result, the hospitals were overwhelmed and medical supplies such as oxygen and medication were scarce.

While the central government was reluctant to issue another nationwide lockdown, as it did last year, state authorities tightened local restrictions – including regional lockdowns – to curb the spread of the virus.

“The lockdowns, along with changes in public behavior, are holding back economic activity and mobility, which will affect infrastructure companies in different ways,” said Abhishek Tyagi, vice president and senior credit officer at Moody’s, in a statement.

India’s regional lockdowns resulted in lower electricity demand as well as lower traffic for transportation companies. However, the availability of labor has not yet been significantly affected.

Here’s what Moody’s says about the country’s infrastructure companies:

power

The business models of rated utility companies enable them to handle the current decline in demand and withstand a moderate increase in the cash conversion cycle, which refers to the number of days it takes a company to convert its investments into cash flows from sales. This is because Indian power companies are dependent on state distribution companies, which are likely to find themselves in financial distress due to lower demand.

In the event that demand remains low for longer and there is a subsequent liquidity bottleneck, the electricity companies have good access to liquidity and support, according to Moody’s.

Airports and toll road operators

Moody’s believes that the recovery of Indian airports, some of which are undergoing debt-financed expansion plans, will be further dampened by the second wave and subsequent regional lockdowns. International travel is expected to take even longer to recover due to border closings.

Although domestic and international traffic will increase between October this year and March 2022 – the second half of India’s current fiscal year – Moody’s said the disruption caused by the second wave “will likely result in lower traffic and revenue in fiscal 2022, and potentially for fiscal 2023 compared to our previous projections. “

The rating agency downgraded Delhi International Airport to a B1 rating this month – which is viewed as speculative and high credit risk – and said the airport is likely to need additional debt to complete its expansion due to lower operating cash flow .

An increase in Covid vaccination rates in India could be an important driver for an airport recovery, according to Moody’s.

Prolonged restrictions on movement or repeated blocks will continue to have a negative impact on toll road operators and put their credit quality under pressure, according to the rating agency.

Ports

India’s rated ports performed well in the past financial year despite the economic downturn due to the pandemic and, according to Moody’s, were able to improve their market shares.

Port operators have remained largely unaffected by the regional lockdowns as “goods traffic has remained normal across the country and both ports also have sufficient buffers in their financial profiles to accommodate temporary disruptions,” Moody’s said.

Road to economic recovery

The daily reported Covid-19 cases in India have been on a downward trend since their peak in early May. As the situation gradually improves, many states are easing restrictions to reopen the economy, but experts are warning of an inevitable third wave of infections.

Moody’s pointed out that if vaccination rates are still relatively low, the risk of subsequent waves of infection remains open, which could lead states to introduce further bans.

“The government’s ability to contain the spread of the virus and significantly step up its vaccination campaign will have a direct impact on economic recovery,” the rating agency said.

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Biden reiterates assist for bipartisan infrastructure plan, didn’t threaten veto

Biden reiterates support for bipartisan infrastructure plan, did not threaten veto

President Joe Biden on Saturday said he doesn’t plan to veto a bipartisan infrastructure bill if it comes without a reconciliation package, walking back a declaration last week that he would refuse to sign it unless the two bills came in tandem.

The comment angered some Republican lawmakers, including Senate Minority Leader Mitch McConnell, who said the president was threatening to veto the bipartisan deal in remarks on the Senate floor on Thursday.

“That statement understandably upset some Republicans, who do not see the two plans as linked,” the president said in a statement.

“My comments also created the impression that I was issuing a veto threat on the very plan I had just agreed to, which was certainly not my intent,” the president said.

A bipartisan group of lawmakers closed a deal on an infrastructure initiative Thursday following weeks of negotiations to craft a package that could get through Congress with Republican and Democratic support. The framework will include $579 billion in new spending to improve the country’s roads, bridges and broadband.

The second bill would include funding for Democrat-backed issues like climate change, childcare, health care and education, issues that administration officials have called “human infrastructure.” It would be passed through a Senate process called reconciliation, which doesn’t require Republican votes.

House Speaker Nancy Pelosi, D-Calif., on Thursday morning said the House would not take up either piece of legislation until both are passed through the Senate. Democrats can’t lose a single vote on a reconciliation bill in the evenly split chamber.

Biden said he will ask Senate Majority Leader Chuck Schumer, D-N.Y., to schedule the infrastructure plan and the reconciliation bill for action in the Senate and expects them both to go to the House.

“Ultimately, I am confident that Congress will get both to my desk, so I can sign each bill promptly,” Biden said.

Read the president’s full statement here:

On Thursday, I reached a historic agreement with a bipartisan group of Senators on a $1.2 trillion plan to transform our physical infrastructure. The plan would make the largest investment in infrastructure in history, the biggest investment in rail since the creation of Amtrak, and the largest investment in transit ever. It would fix roads and bridges, make critical investments in our clean energy future, and help this country compete with China and other economic rivals. It would replace lead water pipes in our schools and houses, and connect every American to high-speed internet. It would create millions of high-paying jobs that could not be outsourced.

In the days since, the primary focus in Washington has not been about the Plan’s scope, scale or provisions—but rather, how it relates to other legislation before Congress: my American Families Plan. The American Families Plan—which would make historic investments in education, health care, child care, and tax cuts for families, coupled with other investments in care for our seniors, housing, and clean energy—has broad support with the American people, but not among Republicans in Congress.

I have been clear from the start that it was my hope that the infrastructure plan could be one that Democrats and Republicans would work on together, while I would seek to pass my Families Plan and other provisions through the process known as reconciliation. There has been no doubt or ambiguity about my intention to proceed this way.

At a press conference after announcing the bipartisan agreement, I indicated that I would refuse to sign the infrastructure bill if it was sent to me without my Families Plan and other priorities, including clean energy. That statement understandably upset some Republicans, who do not see the two plans as linked; they are hoping to defeat my Families Plan—and do not want their support for the infrastructure plan to be seen as aiding passage of the Families Plan. 

My comments also created the impression that I was issuing a veto threat on the very plan I had just agreed to, which was certainly not my intent. So to be clear: our bipartisan agreement does not preclude Republicans from attempting to defeat my Families Plan; likewise, they should have no objections to my devoted efforts to pass that Families Plan and other proposals in tandem. We will let the American people—and the Congress—decide. 

The bottom line is this: I gave my word to support the Infrastructure Plan, and that’s what I intend to do. I intend to pursue the passage of that plan, which Democrats and Republicans agreed to on Thursday, with vigor. It would be good for the economy, good for our country, good for our people. I fully stand behind it without reservation or hesitation. 

Some other Democrats have said they might oppose the Infrastructure Plan because it omits items they think are important: that is a mistake, in my view. Some Republicans now say that they might oppose the infrastructure plan because I am also trying to pass the American Families Plan: that is also a mistake, in my view. I intend to work hard to get both of them passed, because our country needs both—and I ran a winning campaign for President that promised to deliver on both. No one should be surprised that that is precisely what I am doing. 

I will ask Leader Schumer to schedule both the infrastructure plan and the reconciliation bill for action in the Senate. I expect both to go to the House, where I will work with Speaker Pelosi on the path forward after Senate action. Ultimately, I am confident that Congress will get both to my desk, so I can sign each bill promptly.

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Bipartisan Senate infrastructure deal would value about $1 trillion

Bipartisan Senate infrastructure deal would cost about $1 trillion

(L-R) U.S. Sens. Mark Warner (D-VA), Joe Manchin (D-WV), Mitt Romney (R-UT), Jeanne Shaheen (D-NH), Susan Collins (R-ME) and Kyrsten Sinema (D-AZ) take a break from a meeting on infrastructure for going to a vote at the U.S. Capitol June 8, 2021 in Washington, DC.

Alex Wong | Getty Images

An infrastructure plan crafted by a group of Senate Democrats and Republicans would cost roughly $1 trillion, a price tag that leaves the senators with work to do to win over members of both parties.

The proposal, which aims to upgrade physical infrastructure such as transportation and water systems, would cost $974 billion over five years or $1.2 trillion over eight years, a source familiar with the plan told CNBC. It would include $579 billion in new spending above the baseline already set by Congress. Biden asked for about $600 billion in new money, according to Sen. Bill Cassidy, R-La.

Senators have not announced how they plan to pay for the investments. The proposal “would be fully paid for and not include tax increases,” the 10 lawmakers who reached the deal said in a statement Thursday.

The group framed their proposal as a compromise to upgrade U.S. infrastructure with bipartisan support in Congress. The senators still need to win backing from President Joe Biden and congressional leaders for their plan to gain traction.

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In a statement responding to the plan Thursday night, White House spokesman Andrew Bates said “questions need to be addressed, particularly around the details of both policy and pay fors, among other matters.”

“Senior White House staff and the Jobs Cabinet will work with the Senate group in the days ahead to get answers to those questions, as we also consult with other Members in both the House and the Senate on the path forward,” he said.

The White House let senators know it would not agree to pay for a bill by either indexing the gas tax to inflation or implementing an electric vehicle mileage tax, NBC News reported Thursday. The measures would break Biden’s promise not to raise taxes on anyone making less than $400,000 per year.

It is also unclear if the spending will be broad enough to win over Senate Majority Leader Chuck Schumer, D-N.Y., House Speaker Nancy Pelosi, D-Calif., or progressives who have grown impatient with Biden’s efforts to reach a bipartisan deal. While Senate Minority Leader Mitch McConnell, R-Ky., has said he wants to pass a bipartisan infrastructure bill, he has also signaled he aims to block major pieces of Biden’s economic agenda.

Schumer’s and Pelosi’s offices did not immediately respond to requests to comment. A spokesman for McConnell did not immediately comment.

Democrats are working on more than one front to pass an infrastructure bill and implement the first piece of Biden’s economic recovery agenda. While the White House considers the bipartisan proposal, Democrats have started to set the groundwork to pass pieces of the president’s $2.3 trillion American Jobs Plan by other means.

One tool is the five-year, $547 billion surface transportation funding bill advanced by the House Transportation and Infrastructure Committee this week. Democrats could use the measure, which the House could vote on as soon as the end of the month, to approve parts of Biden’s agenda.

Biden has also urged Schumer and Pelosi to move forward with a budget resolution to set up the reconciliation process. By doing so, Democrats could pass an infrastructure bill without Republican support.

The path appears blocked for now. Sen. Joe Manchin, the West Virginia Democrat whose vote the party would need to approve legislation in a Senate split 50-50 by party, has stressed he wants to pass a bipartisan bill.

Manchin is one of the 10 negotiators in the Senate group.

It is unclear whether Democratic leaders would accept the bipartisan plan’s lack of spending on so-called human infrastructure, such as Biden’s plan to expand care for elderly and disabled Americans. The party could potentially weave those proposals into a separate bill based around Biden’s American Families Plan. The proposal focuses on child care, education and health care.

Democrats have argued the country needs to improve care programs alongside physical infrastructure because both would help Americans get back to work.

Biden has also called to hike the corporate tax rate to at least 25% to pay for the first piece of his recovery plan. However, Republicans said they would not alter their 2017 tax law, which cut the corporate rate to 21% from 35%.

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Bipartisan Group of Senators Say They Reached Settlement on Infrastructure Plan

Bipartisan Group of Senators Say They Reached Agreement on Infrastructure Plan

But the bipartisan group of senators are part of a broader coalition of moderates who have quietly met since Mr. Biden took office, in an effort to explore avenues of compromise on a number of issues. Moderate Democrats in particular have been resistant to immediately bypassing the need for Republican votes on an infrastructure package, long seen as a particularly ripe area for a bipartisan agreement.

The five Republicans are Senators Rob Portman of Ohio, Mitt Romney of Utah, Lisa Murkowski of Alaska, Susan Collins of Maine and Bill Cassidy of Louisiana. The Democrats are key moderates: Senators Kyrsten Sinema of Arizona, Joe Manchin III of West Virginia, Mark Warner of Virginia, Jeanne Shaheen of New Hampshire and Jon Tester of Montana.

“I think it’s important that there is this initiative, that again is a bipartisan initiative,” Ms. Murkowski said before the announcement. “What is happening now is as Republicans and Democrats, we are going out to folks within our respective conferences, talking about the contours of what we put together to see what that level of support might be.”

With razor-thin margins in both chambers, Democratic leaders have begun to quietly work on the legislation needed to use the fast-track budget reconciliation process, which would allow them to move a sweeping infrastructure package with a simple majority. But the maneuver would require near unanimity from the caucus and promises to be challenging, given the strict budgetary rules that govern the process.

“We either need to do it in a bipartisan fashion that gets 60 votes, which shows no sign of occurring given the substance of the ongoing bipartisan negotiations, or we need to be prepared to use the reconciliation process,” said Senator Sheldon Whitehouse, Democrat of Rhode Island and one of the most vocal proponents for the preservation of the climate provisions. “It’s got to happen.”

Senator Chuck Schumer of New York, the Democratic leader, refused to comment on the details from the bipartisan group as he left the Capitol on Thursday, telling reporters, “We continue to proceed on two tracks — a bipartisan track and a reconciliation track — and both are moving forward.”

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Biden rejects new GOP infrastructure provide

Progress in talks with GOP senators

U.S. President Joe Biden gestures toward Senator Shelley Capito (R-WV) during an infrastructure meeting with Republican Senators at the White House in Washington, May 13, 2021.

Kevin Lamarque | Reuters

President Joe Biden rejected a new Republican infrastructure counteroffer on Friday, but will continue talks with Republicans next week as the White House considers whether it should abandon hopes for a bipartisan deal.

During a conversation with the president Friday, Sen. Shelley Moore Capito, R-W.V., proposed adding about $50 billion in spending to the GOP’s framework, White House press secretary Jen Psaki said in a statement. Republicans last put forward a $928 billion plan. Biden most recently proposed a $1.7 trillion package.

Biden signaled the “current offer did not meet his objectives to grow the economy, tackle the climate crisis, and create new jobs,” she added. Though he shot down the latest proposal, Biden will meet with Capito again Monday and plans to engage with senators from both parties about a “more substantial package,” according to Psaki.

As the talks continue, Democrats have also moved ahead with a surface transportation bill in the House. The legislation could serve as the means to approve major pieces of Biden’s $2.3 trillion infrastructure package through a series of must-pass spending bills.

House Transportation Committee Chair Rep. Peter DeFazio, D-Ore., unveiled the bill on Friday. It would invest $547 billion over five years in roads and bridges, as well as rail and other public transport.

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DeFazio has scheduled a committee mark up the bill Wednesday, a date which could serve as the closest thing to a real deadline for Biden and Senate Republicans to reach a deal on infrastructure. Biden separately spoke to DeFazio to “offer his support” for the hearing on the legislation.

The parties have tried to forge a compromise for weeks but appear far from agreement on how much money to spend on infrastructure and how to pay for the investments. Monday marks the date by which Transportation Secretary Pete Buttigieg said the White House wanted to see a “clear direction” in the talks.

Biden could have to decide whether to pursue a massive infrastructure package with only Democratic votes. Members of his own party could complicate the process: Democratic Sen. Joe Manchin of West Virginia on Thursday expressed doubts about using special budget rules to pass a bill as he holds out hope for a bipartisan deal. Biden would need every Democratic vote in the Senate if a plan lacks GOP support.

Biden has told Capito he wants a bill to include at least $1 trillion in new money — or increases to the spending set out under existing policy. The Republican plan would allocate only about $250 billion in new funds.

The president also floated alternatives to his proposal to pay for a bill by hiking the corporate tax rate to at least 25%, a move Republicans oppose. Biden mentioned the possibility of implementing a 15% minimum corporate tax as some profitable companies manage to pay little or no taxes. (The White House stressed that Biden still supports hiking the corporate rate).

However, it is unclear if Republicans will accept Biden’s concession.

The talks have underscored fundamental differences in what the parties consider infrastructure and what they see as the federal government’s role in a changing economy. The White House wants a plan to include not only upgrades to transportation, broadband and water systems, but also investments in clean energy, care for dependent family members, housing and schools.

The GOP wants a more narrow focus on areas including roads, bridges, airports, broadband and water systems.

Whether Biden chooses to craft a bipartisan agreement or pass a bill with only Democratic support, he could face backlash from Democrats. Some progressive lawmakers, including Rep. Jamaal Bowman, D-N.Y., have grown wary of the president’s efforts to cut his original $2.3 trillion proposal in order to win Republican votes.

“If what we’ve read is true, I would have a very difficult time voting yes on this bill,” he said in a statement Thursday. “$2 trillion was already the compromise. President Biden can’t expect us to vote for an infrastructure deal dictated by the Republican Party.”

Still, Psaki signaled Friday that the administration has not shut the door on a bipartisan deal. She told reporters “there’s runway left” on the talks.

However, she suggested the White House would put a cap on how long it negotiates with Republicans.

“There are some realities of timelines” on the talks, she said, “including the fact that Congressman DeFazio is leading the markup of key components of the American Jobs Plan next week.”

Senate Majority Leader Chuck Schumer, D-N.Y., has told his caucus he wants to pass an infrastructure bill by July.

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Infrastructure talks can’t go on endlessly, want course by subsequent week

Infrastructure talks can’t go on forever, need direction by next week

WASHINGTON, DC – FEBRUARY 05: U.S. Secretary of Transportation Pete Buttigieg speaks to Amtrak employees during a visit at Union Station February 5, 2021 in Washington, DC.

Alex Wong | Getty Images News | Getty Images

Transportation Secretary Pete Buttigieg said Sunday that Senate Democrats and Republicans must establish a clear direction on infrastructure negotiations when Congress returns to Washington after the Memorial Day break, signaling that the White House is losing patience with bipartisan talks.

“By the time that they return, which is June 7 just a week from tomorrow, we need a clear direction,” Buttigieg said during an interview on CNN’s “State of the Union.” “The President keeps saying, ‘inaction is not an option’ and time is not unlimited here. The American people expect us to do something.”

Senate Democrats plan to move forward with crafting a sweeping infrastructure package next month with or without Republican support in order to pass a bill this summer.

The two parties are in ongoing talks but are not close to an agreement on what the plan would include and how the government would pay for the much-needed investments.

Buttigieg said he believes the White House is “getting pretty close to a fish or cut bait moment” on bipartisan negotiations.

“This can’t go on in terms of the condition of our infrastructure, therefore, the negotiations can’t go on forever either,” he said.

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Republicans on Thursday provided President Joe Biden with a $928 billion counteroffer on infrastructure, amounting to roughly half of the $1.7 trillion proposal the administration previously offered. The White House originally put forward a $2.3 trillion infrastructure proposal.

Democrats and Republicans have disagreed on what constitutes infrastructure and how best to pay for the plan.

Democrats have rejected a GOP offer to fund the plan through user fees, arguing that doing so could cause a tax hike for middle-class Americans who drive. Republicans have opposed the Democrats’ proposal to raise the corporate tax rate to at least 25% to pay for the plan.

Democrats could ultimately pass the legislation without GOP support through the process of budget reconciliation, which would require a simple majority vote in the Senate.

Sen. Shelley Moore Capito, the West Virginia Republican leading negotiations with the White House, said that during a Friday phone call with the president, Biden said “let’s get this done” with respect to negotiations.

“We have had some back and forth with his staff to sort of pull back a little bit, but I think we’re smoothing out those edges,” Capito said during an interview on “Fox News Sunday.”

“I think we can get to real compromise, absolutely, because we’re both still in the game,” she said. “We realize this is not easy.”

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AT&T employed ally of Commerce Secretary Raimondo to foyer Biden infrastructure plan

AT&T hired ally of Commerce Secretary Raimondo to lobby Biden infrastructure plan

John Stankey, CEO of AT&T

Mike Segar | Reuters

Telecom giant AT&T hired an ally of Commerce Secretary Gina Raimondo to lobby officials over President Joe Biden’s infrastructure plan.

A lobbying registration report shows that AT&T hired Jon Duffy, the president of Rhode Island-based marketing firm Duffy & Shanley, in April. The document doesn’t say whether he will lobby congressional lawmakers or administration officials.

Duffy was a co-chair of Raimondo’s transition team after she was first elected in 2014 to be governor of Rhode Island. Records show that Duffy had never registered to lobby until his recent agreement with AT&T.

The lobbying report says that AT&T hired Duffy to focus on “issues related to broadband and The American Jobs Plan.”

Biden’s $2 trillion infrastructure proposal includes a $100 billion investment in expanding broadband access. The Senate Republicans’ most recent counteroffer included $65 billion for broadband.

The infrastructure lobbying comes during a pivotal time for AT&T. The company announced a $43 billion deal this month to merge its WarnerMedia division with Discovery.

AT&T so far in 2021 has spent just over $2.6 million on lobbying expenditures, according to the nonpartisan Center for Responsive Politics. AT&T lobbyists have engaged with the Commerce Department, the Executive Office of the President and the Vice President’s Office, among other agencies.

In response to questions about the Duffy hire, AT&T told CNBC on Friday that it plans to focus lobbying efforts in part on working toward “accessible, affordable and sustainable broadband connectivity.”

“During the pandemic, U.S. networks performed much better than other countries,” a company spokesman said. “The country’s broadband networks rose to the challenge due to policies that promoted private sector investment in multiple technologies and networks. Americans are paying less and getting more.”  

Duffy’s public relations company already lists AT&T as a client on its website. Other corporate clients listed include Intel, Dunkin’ Donuts, Hallmark and Staples. Duffy did not respond to a request for comment.

AT&T announced in April a $2 billion commitment to help make broadband more affordable.

Raimondo has been a fierce advocate for investments into expanding broadband access.

“We need transformational investments in broadband to ensure that all Americans finally have access to affordable, reliable, high-speed Internet service. During the pandemic we have seen that high-speed broadband service is not a luxury, but a necessity for jobs, education, and health care,” Raimondo said at an April hearing in front of the Senate Committee on Appropriations.

The Commerce Department’s National Telecommunications and Information Administration announced earlier this month a $288 million grant program for wide-scale broadband infrastructure.

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Biden infrastructure plan: Senate Republicans make counteroffer

Biden infrastructure plan: Senate Republicans make counteroffer

Senate Republicans unveiled their $928 billion infrastructure counteroffer to President Joe Biden on Thursday, as the sides see whether they can bridge an ideological gulf to strike a bipartisan deal.

The plan includes:

  • $506 billion for roads, bridges and major infrastructure projects, including $4 billion for electric vehicles
  • $98 billion for public transit
  • $72 billion for water systems
  • $65 billion for broadband
  • $56 billion for airports
  • $46 billion for passenger and freight rail systems
  • $22 billion for ports and waterways
  • $22 billion for water storage
  • $21 billion for safety efforts
  • $20 billion for infrastructure financing

Biden’s latest offer to Republicans came in at $1.7 trillion — $600 billion less than his original plan. He has urged the GOP to put at least $1 trillion into an infrastructure package.

The White House did not immediately respond to a request to comment on the senators’ offer.

Republicans and the White House have moved closer to agreement on an infrastructure plan but still need to resolve fundamental issues about the scope of a package and how to pay for it, a GOP senator leading the effort said Thursday. Sen. Shelley Moore Capito said the sides are “inching closer” in negotiations ahead of Memorial Day, the date by which the White House wanted to see progress in bipartisan talks.

“We’re still talking. I’m optimistic, we still have a big gap,” Capito told CNBC’s “Squawk Box.” “I think where we’re really falling short is we can’t seem to get the White House to agree on a definition or a scope of infrastructure that matches where we think it is, and that’s physical, core infrastructure.”

“The White House is still bringing their human infrastructure into this package and that’s just a nonstarter for us,” she continued, referencing Biden’s plans to put money into programs including care for elderly and disabled Americans.

U.S. Sen. Shelley Moore Capito (R-W.Va.) asks questions during a Senate Appropriations Subcommittee hearing to examine the FY 2022 budget request for the Centers for Disease Control and Prevention in the Dirksen Senate Office Building in Washington, May 19, 2021.

Greg Nash | Pool | Reuters

It is unclear if the two parties can overcome broad ideological differences over what constitutes infrastructure, and how to pay for improvements to it, to strike a bipartisan deal. If negotiations do not show promise, Democrats will have to decide whether to try to pass an infrastructure bill on their own using special budget rules.

The process would bring its own headaches, as Senate Democrats would have to both keep all 50 members of their caucus on board and comply with strict rules about what can go into a budget reconciliation bill.

Republicans have said they do not want to raise taxes to cover the costs of improving transportation, broadband and water systems. Biden has called to hike the corporate tax rate from 21% — the level set by the GOP after it cut taxes in 2017 — to at least 25%.

“We can do this without touching … those tax cuts,” Capito told CNBC.

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She mentioned that lawmakers could redirect unused coronavirus relief funds to state and local governments to infrastructure, or implement user fees on transportation like electric vehicles. Those Republican solutions could put Biden in a bind.

The president has promised not to raise taxes on anyone who makes less than $400,000 per year. User fees or an increase to the gas tax would put an extra burden on many Americans whose incomes falls under the threshold.

Capito said she sees the potential for bipartisan agreement on transportation spending. She noted that the Senate’s Environment and Public Works Committee — where she sits as ranking member — advanced a roughly $300 billion surface transportation bill that she thinks could guide a broader infrastructure deal.

In trimming his original $2.3 trillion plan, Biden cut out funding for research and development and supply chain enhancements. He also reduced proposed spending on broadband, roads and bridges.

Biden did not cut down the proposed $400 billion for home-based health care. Republicans have criticized that spending as part of an infrastructure package.

This story is developing. Please check back for updates.

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