On June 24, President Biden and a bipartisan group of 21 U.S. senators announced that after weeks of negotiations, they had agreed to a framework to spend $1.2 trillion over eight years on traditional infrastructure such as roads, bridges, the electrical grid, and digital infrastructure. While only about $580 billion of that is new spending above and beyond what Congress is already penciled in to spend, the bipartisan agreement is nevertheless a significant accomplishment for a deeply polarized Washington. The bill would be “paid for” by a combination of previously appropriated CARES Act money, 5G spectrum sales, and narrowing the tax gap.
But, but, but …
Note, however, that a framework is very different from legislative text, and while the support of 21 senators is a strong start, it takes the votes of 60 senators and 218 representatives in a narrowly divided House to send a final bill to President Biden’s desk. While observers and legislators on both the progressive left and the conservative right are voicing concerns, we believe the infrastructure framework has a lot going for it politically:
It does not include any poison pills for either the left (e.g., no gas tax) or the
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