The White House’s $ 1.7 million infrastructure offer coincides with Republican resistance

The White House reduced the size of the infrastructure package proposed by Joe Biden from 2.25 million euros to 1.7 million euros on Friday, but the Republicans’ quick rejection of the counter-proposal called into question the possibility of a two-party agreement.

White House press secretary Jen Psaki said the Biden administration’s latest proposal was a “senseless counter-offer” with the “spirit of finding common ground.”

But Republicans quickly turned down the offer, saying “there are still significant differences between the definition of infrastructure between the White House and Senate Republicans, the magnitude of the proposed spending and how to pay for it.”

Biden, who spent decades in the U.S. Senate before being Barack Obama’s vice president and campaigning to get through the political corridor, has repeatedly said he wants the support of both parties in his favor. ambitious infrastructure agenda.

However, Friday’s developments seem increasingly unlikely as Biden and Democrats will be able to reach an agreement with Republicans, who proposed a much smaller $ 568 million plan last month and rejected Democratic proposals. raise taxes to pay the bill to corporations and the wealthiest Americans.

Biden administration officials made a conference call Friday afternoon with a select group of Republican senators.

Spokesman Shelley Moore UnderstoodThe West Virginia Republican senator, who has led GOP lawmakers in the White House negotiations, said the administration’s latest counter-offer is “far above what Congress can overcome with the support of both parties.”

“The group appears to be further away from meetings with President Biden after two meetings with White House staff,” the spokesman said, adding that Senate Republicans will “examine more details” in the final counter offer and “continue to participate.” in conversations with the administration ”.

A White House note obtained by the FT detailed the administration’s reviews of the initial $ 2.25 million proposal, excluding investments in manufacturing and research and development, including a proposed $ 65 billion reduction in proposed funding for broadband investments.

The statement said the president reduced the proposal for extra funding for roads, bridges and major infrastructure projects from $ 159 billion to $ 120 billion. Republicans initially proposed an additional $ 48 billion for such initiatives.

“This proposal shows a willingness to downsize by giving us some areas that are important to the President – otherwise they would not be in the proposal – keeping the future firmly in the areas that are key to rebuilding our infrastructure and industries,” Psaki told White House reporters.

Democrats and Republicans have been divided over the weeks over how to pay for Biden’s broad spending proposals.

A White House statement said the president “basically disagrees with the approach of increasing the burden on workers by raising gas taxes and user fees,” and that Biden “intends to comply” with his “commitment” to raise taxes on Americans who do not earn less. $ 400,000 a year.

“Major corporations are among the largest users of transportation infrastructure in our country,” the statement said. “Moreover, they have been paying the lowest level of taxes as part of our economy since the 1930s. Our vision is to make sure that corporations pay their fair share. ”

Earlier in the day, Senate Majority Republican Mitch McConnell vowed to thwart democratic efforts to raise taxes.

“This will slow the economy down to crawl, and I think the chances we have of stopping that… Are pretty good,” he told Fox News. “We may move forward, but I think it’s going to be very tough, and we’re going to fight all the way.”