Biden’s next target for spending: $2 trillion on infrastructure upgrades?

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Reporter | An Jing: After the U.S. House of Representatives approved a $1.9 trillion COVID-19 relief package, President Biden plans to unveil the next phase of measures to address the pandemic on the evening of March 11 local time. Although the White House has not revealed the details of the new plan, U.S. media and agencies predict that the next round of stimulus measures is likely to focus on infrastructure, with a scale exceeding the $1.9 trillion of this current round. Some media outlets also predict that the next stimulus package Biden aims to introduce is related to strengthening America’s manufacturing sector and supply chains, covering chip manufacturing and the development of 5G networks, with the goal of countering competitors. A new plan is being launched. According to a CNBC report on March 10, hours after the House of Representatives approved the plan that day, Biden announced he would deliver a speech to American audiences during prime time on Thursday night. In his speech, he will look back at the United States’ efforts to combat the COVID-19 pandemic over the past year, “and more importantly, I will talk about what needs to be done next.” ” “I will launch the next phase of the COVID-19 response plan, explaining **what will be done, and what the American people need to do. ” Biden said that the United States is now seeing light at the end of the tunnel, but it should not relax its vigilance and assume that victory is within reach. Earlier on Wednesday, the United States **announced the purchase of an additional 100 million doses of Johnson & Johnson vaccines. Previously, the United States had signed a contract with Johnson & Johnson, which pledged to provide 100 million doses of vaccine by June this year. Currently, about 62.4 million people in the United States have received at least one dose of the COVID-19 vaccine. The White House declined to comment on the details of the measures Biden will introduce in the next phase. In response to widespread speculation about infrastructure plans, White House spokesperson Psaki said on Tuesday that there is no infrastructure bill at present, and it is not known whether one will be introduced. Strengthen infrastructure? During last year’s election, upgrading infrastructure was one of Biden’s key priorities. He pledged to invest $2 trillion over 10 years to improve America’s infrastructure, expand broadband access, and promote the development of clean energy. Biden hopes to create more jobs by upgrading infrastructure, boost America’s competitiveness, and better address the impacts of climate change. Last week, Goldman Sachs predicted that Biden’s next major initiative would be related to infrastructure, with an investment of $2 trillion expected over 10 years. The plan covers areas such as infrastructure, green energy, and climate change that were mentioned earlier, and may also extend to child welfare and education. Goldman Sachs predicts that to cover part of the 2 trillion in expenditures, **party members may call for higher taxes, particularly on corporations and capital gains. The tax increases might offset $1 trillion. In the vote on the $1.9 trillion bailout package, all Republicans in the House and Senate voted against it. Since infrastructure is also one of the key issues for the Republicans, some **party members believe that an infrastructure plan is the most likely to gain bipartisan consensus. On Tuesday, Senate Majority Leader Dick Durbin said that, based on past experience, bills related to infrastructure are those that receive the most bipartisan support in Congress. If Biden wants to find a solution that can gain consensus, “it should be infrastructure.” Dubin said that regarding the scale of the infrastructure plan, he has heard figures of 6 trillion dollars. Last month, Biden met with members of both parties in the White House Oval Office to discuss infrastructure development. After the meeting, some Republican lawmakers said the talks went well, but warned their party members not to cross boundaries, stating that \"infrastructure projects are huge investments.\" Although Republicans are also willing to increase investment in infrastructure, their views on the direction of infrastructure development differ from those of the **Party. Republicans believe that Biden’s linkage of infrastructure development with green energy will weaken the traditional fossil fuel industry. Apart from Republicans, **there are also disagreements within the party regarding the scale and details of the infrastructure plan. West Virginia Democrat Senator Joe Manchin has said that if Biden’s next proposal relates to infrastructure, he will oppose the Senate using the \"budget reconciliation\" process to vote on it. After invoking budget reconciliation procedures, Senate Republicans can bypass the requirement of 60 votes to pass a bill; they only need the full support of 50 Republicans, plus one vote from the Senate President and Vice President Harris, in order to pass the bill. The approval of this round of rescue plan was achieved by using that procedure. Mancin believes that another massive stimulus package will further increase **debt, creating serious risks. When the Senate voted on the $1.9 trillion bailout package, Manchin opposed the amount of unemployment benefits provided under the plan, which led to a deadlock in the voting process. In addition to infrastructure, The Washington Post predicts that Biden’s next major initiative might be to strengthen America’s manufacturing sector and supply chains in order to counter its rival countries. Senate **Party Leader Schumer is drafting bills related to countering competitors, covering the expansion of America’s supply chains, enhancing chip manufacturing capabilities, establishing 5G networks across the country, and increasing investment in American manufacturing companies. Schumer said last month that Congress needs to pass the relevant legislation as soon as possible to protect America’s long-term economic interests and **security. The Washington Post believes that, compared to a infrastructure bill that could spark much controversy, stimulus measures aimed at manufacturing and supply chains are more likely to gain bipartisan consensus. U.S. infrastructure rating: C- The American Society of Civil Engineers assigned a new rating to U.S. infrastructure at the beginning of this month: C-. This is the highest score awarded in the association’s 20-year rating system, but out of the 17 evaluation categories, 11—including roads, aviation, and public transportation—received a D grade. Among them, public transportation is the lowest, at only D-. The report states that an overall rating of C indicates that the country’s infrastructure is average, has deficiencies, and requires **attention**. Among various aspects, although the infrastructure in areas such as energy, ports, and aviation has improved, roads, bridges, and public transportation still score poorly. The bridge’s rating dropped from C+ to C, becoming the only project whose rating declined. The report shows that currently 42% of bridges across the United States are over 50 years old, and the design lifespan of most of these bridges is indeed 50 years. In terms of roads, 40% of the road systems across the United States are in a “poor or mediocre” condition ； Due to road conditions, drivers spend at least $1,000 per year on wasted time and fuel. Public transportation has the lowest infrastructure rating; its existing facilities are outdated, and as high as 45% of Americans are unable to use public transportation. Over the 10-year period, 19% of public transportation vehicles and 6% of fixed guideways, including tracks and tunnels, were in a “poor” condition. The report states that the United States invests only half of what is needed in infrastructure. Over the next 10 years, the shortage in infrastructure funding could reach $2.59 trillion. The Society of Civil Engineers warns that if the United States does not address its infrastructure shortcomings, its economic growth could be reduced by $10 trillion by 2039, with 3 million jobs lost. Every year, each family will incur an invisible cost of $3,300 as a result of this. Source: Jiemian News