Saturday, November 6th, 2021
Infrastructure package decided
Biden announces “Millions of Jobs”
After a long struggle, the US President brings his billion dollar infrastructure program through Congress. He celebrates his success as a “giant step forward”. But Biden still has to worry about another legislative package – because of wing battles in his own party.
US President Joe Biden has hailed Congress’ passage of his gigantic infrastructure investment program as a “giant step forward for the nation”. The program, decided by parliament in Washington after months of struggle, will create “millions of jobs,” said Biden in the White House. “It puts us on the path to win economic competition with China and other major countries in the 21st century.” He added, “For those at home who feel left behind and forgotten in a rapidly changing economy, this law is for you.” Biden announced that he would soon sign the law at a formal ceremony.
The infrastructure program is one of Biden’s core domestic political projects. The House of Representatives had approved the legislative package that night – weeks after the Senate, the other chamber in Congress. Around 550 billion US dollars (476 billion euros) of new investments are earmarked for the modernization of the infrastructure over the next few years. In total – including previously budgeted funds – the package is worth more than a trillion dollars.
A violent dispute among Biden’s democrats over a second billion dollar legislative package with investments in social benefits and climate protection had held up the infrastructure plans for a long time. Biden was optimistic that this second package will also be passed by Congress. He said he was confident that there would be enough votes. At the same time, he defended cuts to the original draft, the volume of which was slashed to 1.75 instead of the initially targeted 3.5 trillion US dollars in order to appease internal party critics. “You can’t have everything you want,” said Biden.
Majority is not considered certain
The Democrats hope to get this second package passed in the House of Representatives before Thanksgiving, a US holiday in late November. After that, however, the US Senate would also have to approve, where a majority is also not yet considered secured. A heavy defeat for the Democrats in the gubernatorial election in Virginia a few days ago had increased the pressure on the party to overcome the internal dispute. Even Democrats admitted that the wing battles over Biden’s investment plans were probably one of the reasons for the debacle.
Now, facing the defeat that people expected, Biden said, “We deliver. Last night we proved we can.” However, the Democrats in the House of Representatives were only able to get a majority in favor of the infrastructure package with the support of several Republicans. Six Democratic MPs voted against.
The nightly vote was preceded by turbulent hours on Friday. For much of the day it was unclear whether the vote would even come about – and until the last minute it was unclear whether a majority would be in favor of the package. Biden once more had to intervene personally on the issue to avert a dramatic setback in Congress.
The billions in infrastructure are to be used in the coming years for roads, bridges, ports, airports, local transport and rail. Some of the projects are also intended to benefit climate protection, which Biden gives top priority. In the coming years, around 110 billion dollars will flow into the expansion or renovation of roads and bridges. Around 39 billion dollars are budgeted for local public transport, and another 66 billion dollars for the rail network. Funds are also earmarked for expanding the charging stations for electric cars and for promoting electric buses. A total of 42 billion dollars is calculated for ports and airports. The package is also intended to finance the expansion of high-speed Internet connections and the improvement of the water supply, including the replacement of all lead pipes. Around 65 billion dollars are also to flow into the modernization of the electricity infrastructure.
Expansion of social benefits
When he took office, Biden had presented plans for billion dollar investments in both the country’s infrastructure and social security systems. The infrastructure package passed the Senate in August after long negotiations. But the final vote in the House of Representatives was still missing. This was delayed enormously, as left wing democrats used the vote as leverage in the negotiations on the second, even larger package of investments in social and climate protection, which met with some resistance within the party. In view of the very narrow majority of the Democrats in both chambers of Congress, Biden is dependent on unity in his own ranks in order to implement his plans. This was a problem for months.
The second trillion package provides for an expansion of social benefits in the country and large sums for the fight against the climate crisis – financed by tax increases for corporations and top earners as well as the more consistent collection of due duties. Moderate Democrats, however, had raised concerns about the high spending and called for the package to be cut. Left-wing democrats, who wanted to push through the largest possible investments in social and climate change, threatened to block the infrastructure package unless the larger second package was secured at the same time. The stalemate between the party wings dragged on for months.