Senators Release Bipartisan Infrastructure Framework

Brownstein Hyatt Farber Schreck

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).

Category

Bipartisan
Framework

Roads, Bridges and Major Projects

$110 billion

Passenger and Freight Rail

$66 billion

Power Infrastructure

$65 billion

Water Infrastructure

$55 billion

Public Transit

$48.5 billion

Resiliency

$47.2 billion

Airports

$25 billion

Infrastructure Financing Authority

$20 billion

Ports and Waterways

$16.3 billion

Orphan Wells and Abandoned Mines

$16 billion

Electric Vehicles (Infrastructure, Buses and Transit)

$15 billion

Safety

$11 billion

Western Water Storage

$5 billion

Remediation of Superfund Sites

$5 billion

Reconnecting Communities

$1 billion

New Spending

$579 billion

Topline Spending

(Baseline + New Spending)

$973 billion

Group

White House

Senate Republicans

Bipartisan Framework

Proposed Topline Spending

$1 trillion minimum*

$978 billion

$973 billion

*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.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Brownstein Hyatt Farber Schreck | Attorney Advertising

Written by:

Brownstein Hyatt Farber Schreck
Contact
more
less

Brownstein Hyatt Farber Schreck on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.