White House officials released an internal memo outlining the impact on growth and jobs ahead of Biden’s departure Tuesday for Wisconsin. The Associated Press obtained the memo. It notes that this total is four times as large as the infrastructure investment made a decade ago to respond to the Great Recession. This was the largest infrastructure package since Franklin Roosevelt’s New Deal.
The report also highlights an analysis that suggests that 90% of jobs created by spending could be to workers with no college degree. This is a significant shift considering the majority of net job growth before the pandemic was achieved by college graduates.
The memo states that this is a blueprint for rebuilding America from blue-collar workers.
The potential economic benefits were shared incentives for the Democratic and Republican senators that agreed to the deal. The process was briefly halted by Biden, who suggested that the deal be stopped until he received a separate package to support infrastructure, jobs and education. This would only be decided by Democrats in the budget reconciliation process.
Biden stated Saturday that this was not an ill-intentioned threat to his veto and the package had reverted to its original track by Monday.
Jen Psaki, White House Press Secretary, stated Monday that Biden is eager for both bills to pass Congress and will “work his heart out to make it happen.”
Psaki stated that the president intended to sign both pieces into law during her daily briefing.
The approval of both bills by Congress is still a long process with the first votes expected to be cast in July. Tuesday’s speech in Kentucky by Senator Republican Leader Mitch McConnell raised new questions about the legislative process and presented additional obstacles.
McConnell stated that he is not yet sure if he will support this bipartisan package. However, he wants Biden pressuring Nancy Pelosi, House Speaker, and Chuck Schumer to agree to allow the bipartisan arrangement pass without mandating the larger and more comprehensive follow-up bill.
McConnell stated that while he appreciated the president’s willingness to address infrastructure separately, he does not control Congress at a Louisville press conference.
Both bills were expected to move together, as Biden dropped his veto threat and reached across the aisle to support the $1 trillion bipartisan package. The Democratic leaders are pushing ahead with the larger bill that includes Biden’s family and climate change proposals, as well as their own investments into Medicare. It will eventually reach $6 trillion.
McConnell’s comments were not immediately addressed by the Democratic leaders.
Potential economic gains could be a way for Biden to gain public support and ease partisan tensions. Biden is also under pressure from Democrats like Alexandria Ocasio Cortez of New York, who said on NBC’s “Meet the Press,” that the amount spent is not as large as it seems because the money was spread over many years.
Brian Deese (director of the National Economic Council) and Anita Dunn (senior adviser) wrote the eight-page memo for White House. The memo states that $110 billion would be used to build roads and bridges, which would reduce congestion and traffic that causes economic losses of over $160 billion each year. This memo justifies $48.5 billion for public transit, citing studies linking light rail and buses with increased earnings and more employment for workers. The memo defends the $66billion for repairs and upgrades to rail lines, stating that delays and disruptions are a hindrance to growth.
This bipartisan agreement would also help to nurture the market for electric cars, improve broadband access and repair water lines, as well as create resilience against extreme weather events.
This report was contributed by Bruce Schreiner, Louisville, Ky. and Lisa Mascaro, Washington Associated Press writer.
