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Home Republicans introduce $400 billion transportation invoice

Kevin McCarthy (R-CA), leader of the U.S. minority, can be seen on Capitol Hill in Washington on May 13, 2021.

Evelyn Hockstein | Reuters

WASHINGTON – The Republicans of the House on Wednesday introduced a 5-year transportation bill of $ 400 billion, which sets the historical funding for highways, bridges and transit systems.

The bill comes as part of ongoing talks between the White House and Senate Republicans over their competing infrastructure plans this week.

The bill, unveiled on Wednesday, represents a potential third infrastructure funding option that is narrower than either the White House or the Senate Republicans’ plan.

“Our bill focuses on the core infrastructure that helps move people and goods through our communities every day, reduce bureaucracy that hinders project construction, and bring resources into the hands of our states and locals, with as few conditions as possible be knotted. ” said Rep. Sam Graves of Missouri, senior member of the House Committee on Transportation and Infrastructure and the main sponsor of the bill.

Contrary to the proposals of the Republicans of the White House and the Senate, Graves’ bill does not exist as a separate piece of legislation. Rather, it is a re-authorization of the current five-year transport finance bill, which expires on September 30th.

Graves’ legislation, known as the Surface Transportation Advanced Through Reform, Technology & Efficient Review Act, or STARTER Act, would add a third, or about $ 100 billion, to land transportation projects.

However, it would not address some of the other elements of infrastructure that the stand-alone plans of both Senate Democrats and Republicans refer to, such as broadband, mass transit, water projects, and airports.

In addition, Biden’s plan would include billions more to fund research and development, schools, and charging stations for electric vehicles.

The House Republicans’ plan is also to spend much less than Biden’s proposal, the US $ 2.3 trillion employment plan, or the Senate Republican counteroffer which is roughly $ 570 billion.

“As the process of reviewing infrastructure legislation progresses, I look forward to seeing these proposals become part of a solid bipartisan effort – as the president continues to urge,” said Graves.

Biden has said he wants to reach a compromise deal with the Republicans on infrastructure. To do this, he appears ready to bundle the “hard infrastructure” elements of his American employment plan into a separate bill, if that means it could be passed with the support of both parties.

But Republicans have resisted Biden’s infrastructure plan, deciphering both its price and the proposed increase in the corporate tax rate Biden would pay for it.

The GOP counter-offer plan would be limited to hard infrastructure and pay for a mix of usage fees, misappropriated coronavirus aid funds, and public-private partnerships.

After meeting with Biden last week, a small group of Republican Senators met with White House negotiators on Tuesday to continue working on a bipartisan infrastructure deal.

A White House spokesman later said Biden’s team had been “encouraged” by the talks and that the White House would be in touch with the senators later this week.

Republicans also said the closed session was productive. “We talked about how to get into some nontraditional revenue streams,” said Missouri Sen. Roy Blunt, who attended the talks. “How to do things like public-private partnerships, maybe some [vehicle] kilometers traveled and a type of vehicle charge for electric vehicles. “

The question of how electric vehicles can be included in traditional infrastructure financing turned out to be an unexpected sticking point in the talks this week.

Republicans insist that every bipartisan bill includes a tax or fee for electric vehicle drivers who do not pay the gas taxes that fund the Federal Highway Trust Fund.

However, Democrats insist that any final bill includes money to install hundreds of thousands of new EV charging stations across the country.

Biden spent Tuesday at a Ford Motors electric vehicle manufacturing facility in Michigan, the day before Ford officially launched its first all-electric F-150 pickup truck. The rollout marked a milestone in an effort to make electric vehicles more attractive to US consumers, who typically prefer larger cars than buyers in Europe and Asia.

Biden used the trip to announce the American employment plan.

“The American Jobs Plan is a blueprint for rebuilding America,” he said. “And we need automakers and other companies to keep investing here in America and not take advantage of our public investments and expand production of electric vehicles and batteries overseas.”

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Politics

Biden infrastructure plan consists of company tax hike, transportation cash

President Joe Biden unveiled more than $ 2 trillion in infrastructure on Wednesday as his administration shifts its focus to strengthening the post-pandemic economy.

The plan, which Biden outlined Wednesday, calls for around $ 2 trillion in spending over eight years and would raise the corporate tax rate to 28% to fund it. At a union hall in Pittsburgh, the president called it a vision of creating “the strongest, resilient, and innovative economy in the world” – and millions of “well-paying jobs” along the way.

The White House said the tax hike, combined with measures to prevent profit shifting, would fund the infrastructure plan within 15 years.

The suggestion would be:

  • Invest $ 621 billion in transportation infrastructures such as bridges, roads, public transportation, ports, airports and the development of electric vehicles
  • Directly $ 400 billion to care for elderly and disabled Americans
  • Spend more than $ 300 billion on improving drinking water infrastructure, expanding broadband access and modernizing power grids
  • Spend more than $ 300 billion building and retrofitting affordable housing, and building and upgrading schools
  • Invest $ 580 billion in American manufacturing, research and development, and training efforts

United States President Joe Biden speaks about his $ 2 trillion infrastructure plan during an event at Carpenters Pittsburgh Training Center in Pittsburgh, Pennsylvania on March 31, 2021.

Jonathan Ernst | Reuters

The announcement kicks off Biden’s second major initiative after passing a $ 1.9 trillion coronavirus relief plan earlier this month. With the new move, the government aims to approve an initial proposal to create jobs, upgrade U.S. infrastructure, and combat climate change before adopting a second plan to improve education and expand paid vacation and health insurance.

Biden said he would reveal the second part of his recovery package “in a couple of weeks”.

“These are investments that we need to make,” said Biden of the overhaul of the US infrastructure. “We can afford to make them. In other words, we can’t afford not to make them.”

While the Democrats closely control both houses of Congress, the party faces challenges as it passes the infrastructure plan. The GOP largely supports efforts to rebuild roads, bridges and airports and to expand broadband access. The Republicans, however, oppose tax increases as part of the process.

Senate Minority Chairman Mitch McConnell, R-Ky., Said Wednesday that he “probably won’t” endorse the proposal because of the tax hikes. Biden called McConnell Tuesday to inform him of the plan.

McConnell’s Democratic counterpart, New York Majority Leader Chuck Schumer, extolled the bill as a means of creating jobs while promoting clean energy and transportation. In a statement on Wednesday, he said, “I look forward to working with President Biden to adopt a great, bold plan that will propel America forward for decades to come.”

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Responding to criticism of proposed tax increases, the president said he would not increase the burden on anyone making less than $ 400,000 a year. He said he had no intention of punishing the rich.

“This is not intended to target those who made it. Not seeking retaliation,” he said. “This is about opening up opportunities for everyone else.”

The administration’s goals include renovating 20,000 miles of roads and highways and repairing 10,000 bridges. The proposal envisages building a national network of 500,000 chargers for electric vehicles by 2030 and replacing 50,000 diesel vehicles in local public transport.

The government hopes to build or renovate 500,000 homes for low- and middle-income Americans and replace all lead pipes in drinking water systems. The plan also aims to provide universal, affordable broadband service.

The White House wants to ensure the public transportation revitalization reaches color communities that have been harmed by previous projects such as highways built through neighborhoods. The administration also aims to focus efforts to increase the resilience of homes, schools, transportation and utilities in marginalized communities, which are more likely to bear the brunt of severe weather events.

Biden plans to fund the expenses by increasing the corporate tax rate to 28%. Republicans cut the tax under their 2017 tax bill from 35% to 21%.

The administration also wants to increase the global minimum tax for multinational companies and ensure that they pay at least 21% tax in each country. The White House wants to discourage companies from listing tax havens as an address and, among other things, writing off the costs associated with offshoring.

Biden hopes the package will create manufacturing jobs and save flawed American infrastructure as the country tries to get out of the shadow of Covid-19. He and the Congress Democrats also plan to tackle climate change and begin a transition to cleaner energy sources.

The president announced his plans in Pittsburgh, a city where the organized labor force is strong and the economy has transitioned from traditional manufacturing and mining to healthcare and technology. Biden, who has pledged to create union jobs as part of the infrastructure plan, launched his 2019 presidential campaign in a union hall in Pittsburgh.

Biden said he hoped to win Republican support for an infrastructure bill. If Democrats can’t get 10 GOP Senators on board, they’ll have to try to get the bill passed through a budget vote, which wouldn’t force Republicans to back the plan in a chamber 50-50 split by party.

Biden said he would hear GOP ideas on infrastructure.

“We will negotiate in good faith with any Republican who wants to help,” said Biden on Wednesday. “But we have to do it.”

United States President Joe Biden speaks about his $ 2 trillion infrastructure plan during an event at Carpenters Pittsburgh Training Center in Pittsburgh, Pennsylvania on March 31, 2021.

Jonathan Ernst | Reuters

Democrats also need to consider combining the physical infrastructure plans with other recovery efforts, including universal pre-K and extended paid vacation days. Republicans would likely stop supporting spending to bolster the social safety net, especially if Democrats try to raise taxes on the rich to fund programs.

Schumer also anticipated a possible sticking point within his party on Wednesday.

He said he wanted the infrastructure plan to lift the cap on state and local tax deductions – a change that would disproportionately help higher-income people in high-tax countries like New Jersey, Connecticut, and Schumer’s home state of New York.

Democrats want to pass the package this summer. House spokeswoman Nancy Pelosi told the Democratic caucus in the chamber that she would like it passed by July 4th, according to a source familiar with the matter. The source, who refused to be named because the comment was made private, added that it was not intended as a deadline.

Speaking to reporters on Tuesday night, an administrative official did not say whether Biden would attempt to pass the plan with the support of both parties.

“We will begin, and will have already begun, to fully reach our colleagues in Congress,” said the official.

When asked how the bill could be passed, White House press secretary Jen Psaki said Biden would “hand over the mechanism of the bill to Leader Schumer and other congressional leaders.”

As of now, Democrats will have two more shots on the budget vote before halfway through 2022. According to NBC News, Schumer hopes to convince the House MP to allow the Democrats to use the process at least one more time beyond these two options.

The party passed its $ 1.9 trillion coronavirus aid package without a Republican vote.

– CNBC’s Kevin Breuninger and Ylan Mui contributed to this report

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Health

Senate confirms Pete Buttigieg as Transportation secretary

Pete Buttigieg speaks at the Senate Commerce, Science, and Transportation nomination hearings to review his awaited nomination for Secretary of Transportation in Washington.

Ken Cedeno | Reuters

The U.S. Senate confirmed Pete Buttigieg as Secretary of Transportation on Tuesday, presenting the former presidential candidate with a myriad of challenges – from President Joe Biden’s environmental priorities to the Covid-19 pandemic.

Buttigieg, the former mayor of South Bend, Indiana, easily received approval from the Senate Committee on Commerce, Science, and Transportation last week after a largely amicable hearing. He was asked about issues related to Covid-19, the much-needed improvement in infrastructure, and strengthening the powers of the Federal Aviation Administration if he were to lead the DOT, which has 55,000 employees.

The Senate approved Buttigieg’s 86-13 nomination with an overwhelming majority.

In the first two weeks, Biden’s government has already taken strict measures regarding transportation measures to contain the spread of Covid-19. Biden extended an entry ban for most non-US citizens who have recently been to Brazil, the UK and much of Europe. On Tuesday, the US government asked passengers to wear masks on planes, trains, buses, ferries and other means of transport.

Buttigieg’s DOT could become a driving or limiting force in the adoption of new technologies, especially autonomous and electric vehicles.

Biden has already directed federal agencies to consider revising the Trump administration’s lowered fuel emission standards for vehicles. He also said he plans to replace the government’s fleet of cars and trucks with U.S.-assembled electric vehicles

The 39-year-old will be the first openly gay person to hold a cabinet position and one of the youngest ever.

– CNBC’s Michael Wayland contributed to this article.

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Politics

Joe Biden selects Pete Buttigieg as Transportation secretary

U.S. 2020 Democratic Presidential Candidates Mayor Pete Buttigieg, Former Vice President Joe Biden, pose on the second night of the first Democratic Presidential Candidate Debate in Miami, Florida on June 27, 2019.

Carlo Allegri | Reuters

President-elect Joe Biden has elected former South Bend, Indiana Mayor Pete Buttigieg to be his transportation secretary, three people familiar with the discussions told NBC News.

Buttigieg, who opposed Biden in the 2020 primary, is expected to play a central role in the future president’s plans to restore and repair roads and bridges in the United States

The president-elect has said for months that smart, climate-friendly infrastructure projects can help the US emerge stronger from the coronavirus recession and support thousands of jobs.

A spokesman for the Biden transition team did not immediately respond to CNBC’s request for comment.

The 38-year-old Buttigieg quickly became a household name in the 2020 elections as the younger but still moderate option for Democrats hoping to prevent a second term for President Donald Trump.

Although Buttigieg was eliminated from the race in March 2020 despite winning in Iowa, the openly gay politician soon approved of Biden as president.

The president-elect has often lauded Buttigieg as a symbol of the next generation of Democrats and was widely expected to be appointed to a senior administrative post.

A Biden business ally told CNBC that Buttigieg could have a huge impact on the government’s infrastructure proposal as it is not tied to stagnant talks in Congress about paying for such a plan.

“He’s not inhibited by the restrictions on Capitol Hill,” the person said. I “haven’t spoken to him yet, but I’ll be sure when it happens.”

This person declined to be named in order to speak freely.

Among the many proposals made by the Biden campaign was a $ 2 trillion plan that, coupled with its climate goals, would “build new American infrastructure and a clean energy economy.”

The expansive plan includes more general investments in roads and bridges, as well as more specific proposals like providing high-quality, zero-emission public transportation to any American city of 100,000 or more residents.

Buttigieg, a military veteran, is perhaps best known in politics for his two terms as Mayor of South Bend from 2012 to 2020.

During his tenure, the city embarked on extensive urban development and revitalization projects similar to those that Biden campaigned for to revitalize American infrastructure.

Critics of his time as mayor said his revitalization plans for South Bend did not necessarily have helped racist minorities as much as hoped.

For example, many were optimistic about his plans to demolish or repair almost all of the city’s vacant houses, a demanding initiative that experts believed was impossible. The program focused on the city’s low-income black and Hispanic neighborhoods, where homes were in disrepair.

And while many said they were glad that derelict structures were removed, they complained about the lack of planning of what would fill the space.

– CNBC’s Brian Schwartz contributed to the coverage.