Critical US Infrastructure Deal Set to Vote on Thursday
It’s a big week for Biden. The House of Representatives is set to vote Thursday on the $1.2T infrastructure bill — which would unleash massive spending and even more debt into the US economy:
What’s the big deal? Two spending packages are circling through the White House:
- The $1.2T infrastructure bill — includes $110B for roads and bridges, $39B for public transit, $7.5B for zero-emission public transit, etc.
- The $3.5T social spending package — is expected to include funding for paid leave, universal pre-K, and Medicare expansion.
Only the infrastructure bill is being voted on this Thursday but several factors threaten to derail the vote:
- Disagreements on the total spending amounts and funding sources.
- Some progressive lawmakers want both bills to pass at the same time.
As expected, the infrastructure bill is much smaller than originally proposed, with the social spending package also likely to be smaller than its current $3.5T. If the bill passes the House this week, it’ll go to President Biden for signing.
Recent damages from Hurricane Ida only emphasized the need for better infrastructure and getting these bills passed is important for President Biden.
Not Biden’s only problem: This week is all about the White House — funding for the federal government is also expiring Friday. The US, which pays its bills by raising debt, hit its debt limit in July.
If the government fails to raise the spending limit, certain public services could be halted and the economy could go into a recession, according to analysts.