- With President Joe Biden’s Covid stimulus package set to become law, the White House now turns its attention to a once-in-a-generation infrastructure bill.
- During the campaign, Biden pitched a $2 trillion plan that aims to achieve carbon-free power generation by 2035 and creates “millions” of union jobs.
- Infrastructure is a bipartisan issue, but divisions exist between progressive Democrats and a coalition of moderates and Republicans.
- “Do not think of the infrastructure bill as just roads and bridges. Democrats view an infrastructure bill as the ‘infrastructure’ necessary to build the economy of the future,” Raymond James told clients Monday.
With President Joe Biden’s Covid-19 stimulus package just a signature away from becoming law, the White House now turns its attention to assembling and passing a once-in-a-generation infrastructure bill.
It’s not clear what the legislation will include. Yet the new president has all but guaranteed a spectacular infrastructure overhaul as his next policy priority — and his legacy is riding on it. Democrats’ congressional majorities will also be at stake in next year’s midterm elections, which usually result in losses for a president’s party.
Even less clear is how Biden will persuade a Congress split between progressives, moderate Democrats and Republicans to back a potential recovery bill. The GOP uniformly opposed Biden’s $1.9 trillion stimulus plan.
There are even disagreements among Democrats who support a big infrastructure initiative, as labor unions and environmentalists, two key Democratic constituencies, jockey for top billing.
“The lack of specifics reflect how broad the potential issues at play are in the coming months,” Raymond James analyst Ed Mills wrote in an email on Tuesday.
During the campaign, Biden pitched a $2 trillion plan that aimed to achieve carbon-free power generation by 2035. His team said the plan would create “millions” of union jobs that pay at least $15 per hour and include billions in investments for climate-friendly infrastructure.
“Do not think of the infrastructure bill as just roads and bridges. Democrats view an infrastructure bill as the ‘infrastructure’ necessary to build the economy of the future,” Raymond James told clients Monday. “They believe that unless they deliver, they will suffer in the midterm election. Some may argue, even if they deliver, they will suffer in the midterm elections.”
The White House declined to comment on the details of its infrastructure plan and told CNBC it remains focused on finishing the coronavirus stimulus package, which Biden intends to sign this week.