Senators Release Bipartisan Infrastructure Framework

A group of 10 Republican and 10 Democratic senators (the “G20”) released their bipartisan framework on June 16, nearly a week after announcing they had reached an agreement. The framework details $579 billion in new spending across major infrastructure categories. With mandatory baseline funding, the framework proposes a total of $973 billion over five years.

President Joe Biden remains open to negotiating with the bipartisan group. The White House said this week that it has not set a deadline for reaching a deal, but House Democrats continue to push President Biden to move forward on a more expansive package through the reconciliation process absent Republican support. Progressive Democrats in the Senate are also concerned by the framework, which lacks significant investments in climate change.

The following members signed onto the framework: Sens. Richard Burr (R-NC), Bill Cassidy (R-LA), Susan Collins (R-ME), Chris Coons (D-DE), Lindsey Graham (R-SC) Maggie Hassan (D-NH), John Hickenlooper (D-CO), Mark Kelly (D-AZ), Angus King (I-ME), Joe Manchin (D-WV), Lisa Murkowski (R-AK), Rob Portman (R-OH), Mitt Romney (R-UT), Mike Rounds (R-SD) Jeanne Shaheen (D-NH) Kyrsten Sinema (D-AZ), Jon Tester (D-MT), Thom Tillis (R-NC), Mark Warner (D-VA) and Todd Young (R-IN).

*President Biden’s American Jobs Plan totals $2.3 trillion, but he decreased his proposal to $1.7 trillion in May and has said he will not support a bill that authorizes less than $1 trillion in funding.

Pay-Fors

Disagreements over how and the degree to which infrastructure should be financed were key sources of conflict in negotiations between Senate Republicans and the White House. The bipartisan framework proposes eleven sources of financing to fully cover the cost of the framework:

• Creating an infrastructure financing authority;
• Using public-private partnerships, private activity bonds (PABs), direct-pay municipal bonds for infrastructure and asset recycling;
• Increasing funding for the Internal Revenue Service to reduce the tax gap;
• Reallocating unused unemployment insurance funds;
• Repurposing unspent COVID-19 relief funds;
• Expanding the eligible uses of state and local COVID-19 relief funds;
• Authorizing the use of toll credit balances;
• Establishing an annual surcharge on electric vehicles; and
• Adjusting customs user fees.

The framework also proposes indexing the gas tax to inflation but clarifies that the policy is a placeholder for an alternative non-tax offset to be identified by the Biden administration, which opposes indexing the gas tax. The administration may also take issue with repurposing COVID-19 and unemployment insurance funds, suggestions President Biden was resistant to in past negotiations. However, other proposals such as PABs, public-private partnerships, reducing the tax gap and creating an infrastructure financing authority have the potential to garner bipartisan support.

A group of 10 Republican and 10 Democratic senators (the “G20”) released their bipartisan framework on June 16, nearly a week after announcing they had reached an agreement. The framework details $579 billion in new spending across major infrastructure categories. With mandatory baseline funding, the framework proposes a total of $973 billion over five years.

President Joe Biden remains open to negotiating with the bipartisan group. The White House said this week that it has not set a deadline for reaching a deal, but House Democrats continue to push President Biden to move forward on a more expansive package through the reconciliation process absent Republican support. Progressive Democrats in the Senate are also concerned by the framework, which lacks significant investments in climate change.

The following members signed onto the framework: Sens. Richard Burr (R-NC), Bill Cassidy (R-LA), Susan Collins (R-ME), Chris Coons (D-DE), Lindsey Graham (R-SC) Maggie Hassan (D-NH), John Hickenlooper (D-CO), Mark Kelly (D-AZ), Angus King (I-ME), Joe Manchin (D-WV), Lisa Murkowski (R-AK), Rob Portman (R-OH), Mitt Romney (R-UT), Mike Rounds (R-SD) Jeanne Shaheen (D-NH) Kyrsten Sinema (D-AZ), Jon Tester (D-MT), Thom Tillis (R-NC), Mark Warner (D-VA) and Todd Young (R-IN).

*President Biden’s American Jobs Plan totals $2.3 trillion, but he decreased his proposal to $1.7 trillion in May and has said he will not support a bill that authorizes less than $1 trillion in funding.

Pay-Fors

Disagreements over how and the degree to which infrastructure should be financed were key sources of conflict in negotiations between Senate Republicans and the White House. The bipartisan framework proposes eleven sources of financing to fully cover the cost of the framework:

• Creating an infrastructure financing authority;
• Using public-private partnerships, private activity bonds (PABs), direct-pay municipal bonds for infrastructure and asset recycling;
• Increasing funding for the Internal Revenue Service to reduce the tax gap;
• Reallocating unused unemployment insurance funds;
• Repurposing unspent COVID-19 relief funds;
• Expanding the eligible uses of state and local COVID-19 relief funds;
• Authorizing the use of toll credit balances;
• Establishing an annual surcharge on electric vehicles; and
• Adjusting customs user fees.

The framework also proposes indexing the gas tax to inflation but clarifies that the policy is a placeholder for an alternative non-tax offset to be identified by the Biden administration, which opposes indexing the gas tax. The administration may also take issue with repurposing COVID-19 and unemployment insurance funds, suggestions President Biden was resistant to in past negotiations. However, other proposals such as PABs, public-private partnerships, reducing the tax gap and creating an infrastructure financing authority have the potential to garner bipartisan support.