White House Rejects GOP’s Second Infrastructure Proposal and Demands Tax Increases

The White House rejected Senate Republicans’ second infrastructure proposal, demanding tax increases and additional items.

 The White House proposal that costs $1.7 trillion with massive tax increases.

Senate Republicans countered at $928 billion over eight years without tax increases earlier on Thursday, partially paid for by using unspent coronavirus relief money.

.@PressSec responds to GOP infrastructure counter offer. She says "we remain concerned that their plan still provides no substantial new funds for critical job-creating needs" & argues how to pay for the plan remains unclear/ they're worried about major cuts in COVID relief funds pic.twitter.com/NzcZVCR6j1

— Alayna Treene (@alaynatreene) May 27, 2021

The Republican proposal included:

• $506 billion for roads, bridges, and major projects
• $89 billion for rail
• $21 billion for safety
• $22 billion for waterways
• $56 billion for airports
• $22 billion for water shortages
• $72 billion for water infrastructure
• $65 billion for broadband infrastructure
• $72 billion for financing infrastructure

Republican’s second infrastructure counter offer pic.twitter.com/24QVvwEhcc

— Wendell Husebø (@WendellHusebo) May 27, 2021

The future of the infrastructure package seems murky.

The White House’s statement said that President Joe Biden had spoken with Republicans and will follow up with them in the near future.

“We are also continuing to explore other proposals we hope will emerge,” the letter concluded, perhaps with a wink to the tactic of reconciliation in which the Senate would avoid the 60 votes needed to pass the legislation, bypassing Republicans.