White House Makes Infrastructure Counteroffer, Republicans Quickly Reject It

The Biden administration Friday made a counteroffer to Republican senators for a bipartisan infrastructure deal, reducing the initial proposal by $600 billion.

The Senate Republicans, however, immediately rejected the discounted proposal.

In order to reach a compromise on President Joe Biden‘s American Jobs Plan, the White House offered concessions for R&D, supply chains, manufacturing and small businesses funding. However, the offer still included corporate tax increases, which is a non-starter with Republicans.

“In our view, this is the art of seeking common ground,” White House press secretary Jen Psaki said in a press conference Friday. “This proposal exhibits a willingness to come down in size, giving on some areas that are important to the president, while also staying firm in areas that are most vital to building our infrastructure and industries of the future.”

The proposed plan, if passed Congress, would grant billions for caregiving for seniors and disabled people, incentives to buy electric vehicles and other investments on top of existing transportation infrastructure spending.

As Biden’s counteroffer is unlikely to convince Republicans, some Democrats are saying that Biden should end negotiations with Republicans and seek to pass the bill without bipartisan support.

If the Biden administration pushes the American Jobs Plan forward without the support of the Senate Republicans, it would only need a simple majority in the 51 to 50 Senate using budget reconciliation.