The infrastructure proposal being negotiated with the White House by a group of bipartisan Senators gained traction earlier this week, with 21 Senators now supporting the framework of an infrastructure deal that President Biden’s Chief of Staff said has “room” for an agreement.
[Bipartisan Infrastructure Pitch Gains Steam on Capitol Hill as President Weighs in From Europe]
The bipartisan Senate plan, led by Senators Mitt Romney (R-Utah), Kyrsten Sinema (D-Ariz.) and Rob Portman (R-Ohio), calls for about $974 billion in infrastructure spending over five years, according to published reports, and amounts to $579 billion in new spending.
An official infrastructure framework has yet to be released. But leaked copies released by Politico outline a variety of potential pay-for’s, including infrastructure financing authority to leverage private investment; public-private partnerships, private activity bonds and asset recycling; direct-pay municipal bonds for infrastructure investment and reducing the IRS tax gap.
NATSO opposed asset recycling, which funds new infrastructure and revitalizes existing infrastructure through the sale or lease of public assets, when it was previously proposed by the Trump Administration because it could easily lead to tolling and commercial rest areas. Politico specified in its report that the leaked pay-for list was “not the precise” version that was shared with the White House. Democratic lawmakers have also said that details of how to pay for the plan have not been settled.
Additional pay-for’s listed in the leaked documents included an annual surcharge on electric vehicles and indexing the gas tax to inflation. The White House has previously rejected this idea as Democrats have pledged they won’t raise taxes on Americans making under $400,000 a year.
Additional pay-for options included redirecting unused UI relief funds; repurposing unused COVID relief funds for infrastructure; expanding eligible uses of COVID state and local funds; and allowing the use of toll credit balances for infrastructure.
The White House is negotiating its infrastructure deal simultaneously as both the House and the Senate are advancing surface transportation reauthorization legislation. Current surface transportation law expires Sept. 30.
The Senate Commerce, Science and Transportation Committee marked the second of four Senate authorizing panels to advance its portion of a highway bill on June 16, voting 25 to 3 in favor of the Surface Transportation Investment Act of 2021.
[Senate Commerce Committee Advances Safety Title of Highway Bill]
The Senate Environment and Public Works Committee (EPW) unanimously advanced its “Surface Transportation Reauthorization Act of 2021” in May. The Banking, Housing and Urban Affairs Committee has yet to propose its legislation on transit, and the Finance Committee has jurisdiction over funding the overall bill.
The House Transportation and Infrastructure Committee advanced its surface transportation reauthorization earlier this month and is expected to hold a floor vote before the July recess. Any bill passed by the House ultimately would need to be conferenced with the Senate.
[House Committee Advances Surface Transportation Reauthorization]
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