Senate Democrats unveil $3.5 trillion infrastructure reconciliation plan, while progressive groups take aim at moderates

(Photo by Drew Angerer/Getty Images)

Senate Budget Committee Democrats unveiled a $3.5 trillion reconciliation plan Tuesday night that would fund every major program President Joe Biden wanted included in his original infrastructure plan. If Congress passes the proposed $579 billion bipartisan infrastructure deal and the Democrats’ reconciliation bill, the U.S. government would spend a total of $4.1 trillion on infrastructure, making it the largest spending push by Congress. 

Senate Budget Chair Sen. Bernie Sanders (I-Vt.) originally wanted a $6 trillion supplemental infrastructure plan, but welcomed the slimmed-down agreement that has a better chance of gaining all 50 necessary votes from Senate Democrats. 

“This is the most significant piece of legislation passed since the Great Depression, and I’m delighted to be part of having helped to put it together,” Sanders told some reporters during a press gaggle on Tuesday night.

In order for the reconciliation package to pass, all Senate Democrats will have to vote for the bill. Vice President Kamala Harris would then be able to cast the tie-breaking vote and pass the legislation. However, it isn’t assured that this package will have all 50 Democrats on board. 

Sens. Kyrsten Sinema (D-Ariz.), Joe Manchin (D-W.V.) and Jon Tester (D-Mont.) have expressed concern about the go-it-alone plan. Manchin said he supported what the plan entailed but was concerned about the price tag, and Sinema’s spokesperson said the senator would give the package “careful consideration.” Tester told CNN the price tag was a “big amount” but he wasn’t ruling anything out. 

Sinema and Manchin have drawn ire from the progressive Democratic base for defending the filibuster. Many Democratic senators have suggested killing the filibuster to move Democratic priorities, including voting rights and infrastructure, through the Senate without relying on Republican support. Now, some progressives are ready to use PACs to fund challengers to moderate Democrats. 

In February, POLITICO reported that three Democratic political operatives who helped start Rep. Alexandria Ocasio-Cortez’s (D-N.Y.) first campaign founded the No Excuses PAC. The PAC told supporters to “run ads” saying Sinema and Manchin would be “primaried” if they don’t do more to stand up to Republicans. The PAC hasn’t filed any finance reports yet with the Federal Election Commission. 

While the specific details of the reconciliation bill haven’t been released, Senate Majority Leader Chuck Schumer (D-N.Y.) said the bill will expand Medicare coverage to include vision, dental and hearing services. 

The bill is expected to deliver on many of Biden’s 2020 campaign promises such as free community college, paid family leave, expanding the child tax credit and helping families with child care costs. 

The plan will also establish a 2022 fiscal year budget resolution to achieve 80% clean electricity and cut carbon emissions by 50% by 2030, as well as support universal Pre-K.

It’s likely businesses under the “infrastructure” umbrella will spend millions on lobbying to direct some of the money in the bipartisan deal and the reconciliation deal toward their companies. Democrats plan to bring earmarks back this year, and those earmarks will allow provisions to be written into legislation dictating contractors for federal projects and stipulating where money can go. 

The deadline for registered lobbyists to file their quarterly activity reports, which will show how much has been spent on lobbying for infrastructure money (such as the transportation industry), for the second financial quarter is July 20.  

Schumer said he is hoping to bring the reconciliation plan to the floor in the next few weeks. 

“We are very proud of this plan,” Schumer said. “We know we have a long road to go but we are going to get this done for the sake of making average Americans’ lives a whole lot better. If we pass this, this is the most profound change to help American families in generations.” 

Sen. Mark Warner (D-Va.) told Business Insider that the multi-trillion dollar plan would be paid for by tax increases. The Biden administration and Senate Democrats have promised to not raise taxes on households earning under $400,000 a year. 

The package will be brought to the Senate floor as a budget resolution for fiscal year 2022, a move that would launch the reconciliation process — a process that directs multiple committees to turn the policy proposals into legislation. 

Democrats used the reconciliation process one other time this year: to pass Biden’s $1.9 trillion pandemic aid package.

If Democrats are able to pass the bill through reconciliation, they risk the passage of the  bipartisan infrastructure bill. When Biden first announced he expected Senate Democrats to simultaneously pass a reconciliation bill with the bipartisan infrastructure bill, Senate Minority Leader Mitch McConnell (R-Ky.) said Democrats were holding the bill “hostage.” And Sen. Lindsey Graham (R-S.C.) said he wouldn’t be “extorted” to pass bipartisan legislation. 

However, Biden remains optimistic. While on Capitol Hill on Wednesday, he told reporters “we’re going to get this done.” 

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