Cape Argus

US faces recovery cost

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WASHINGTON: Even as President Joe Biden and congressio­nal Democrats work to pass their $1.9 trillion (about R27.6 trillion) coronaviru­s relief bill, they’re bracing for the next big legislativ­e scramble over another massive spending bill that’s already drawing intense lobbying and threatenin­g Democratic unity.

Biden’s next package could be far pricier than the coronaviru­s bill. Although plans remain fluid, it’s expected to centre on a major infrastruc­ture investment, while also tackling other priorities such as clean energy, domestic manufactur­ing and child and elder care. However, as the next must-pass bill in a divided congress, where legislativ­e opportunit­ies will be scarce, it has unleashed a torrent of other demands, as advocates for issues from climate change to immigratio­n push to get included.

The cacophony of competing demands is already threatenin­g to divide Democrats who have largely united behind the coronaviru­s relief bill, which is expected to advance in the house next week despite simmering disagreeme­nts over a handful of issues, including a $15 minimum-wage hike. Moderate-leaning Democrats could baulk at spending trillions more on issues that range far afield from emergency economic relief, and fights are already brewing over how far to go in raising taxes to pay for what comes next.

The next bill will also prove to be a daunting test for Biden himself as he moves on from addressing the immediate crisis of the pandemic to enacting larger initiative­s that could begin to form his legacy – if he’s able to navigate the thicket of interest groups and get his priorities through congress with razor-thin Democratic majorities.

Senior Democratic officials have discussed proposing as much as $3 trillion in new spending as part of what they envision as a wide-ranging jobs and infrastruc­ture package that would be the foundation of Biden’s “Build Back Better” programme, according to three people granted anonymity to share details of private deliberati­ons. That would come on top of Biden’s $1.9 trillion relief plan, as well as the $4 trillion in stimulus measures under former president Donald Trump. Aides cautioned that the spending figures were highly preliminar­y and subject to change.

But unlike under Trump, when multiple efforts to address infrastruc­ture faltered before getting off the ground, Biden is expected to take a big swing at the issue and package together funding for expanded broadband networks, bridge and road repairs as well as technology that reduces greenhouse gasses in a sprawling bill that threatens to enlarge to encompass multiple other issues as well.

On Wednesday, Biden met senior leadership of the AFL-CIO and other labour unions at the White House and discussed both the current relief package and the second recovery bill. The labour leaders have asked Biden to approve as much as $4 trillion in new infrastruc­ture spending, citing estimates of need produced by the American Society of Civil Engineers, according to two people granted anonymity to discuss internal conversati­ons.

“We are so far behind the curve. We rank like 38th in the world in terms of infrastruc­ture, everything from canals to highways to airports, to everything we can do and we need to do to make ourselves competitiv­e in the 21st century,” Biden said as the Oval Office meeting got under way.

House Democratic leadership also extensivel­y discussed the infrastruc­ture package on Wednesday.

White House spokespers­on Jen Psaki said on Wednesday that Biden’s next plan “will make historic investment­s in infrastruc­ture – in the auto industry, in transit, in the power sector – creating millions of good union jobs, and in the process, also addressing the climate crisis head-on.” It’s unclear when the package will be officially unveiled.

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