Senate Democrats intend to reveal a $1 trillion infrastructure spending plan and back President Donald Trump if he supports it, according to The New York Times.
The proposal is to be presented by Senate Minority Leader Chuck Schumer, who will argue that communities across America are struggling with “ageing infrastructure” that needs repair.
Trump also promised $1 trillion in infrastructure spending while he was campaigning for president.
Trump’s plan was part of his “America first” vision — in this case, it prioritised spending on American highways, bridges and airports over “the Obama-Clinton globalization agenda.” The plan did not call for an increase in taxes that could help fund the projects. It promised tax credits to private companies that would provide financing, and expected that jobs created through the developments will generate new tax revenues.
Both parties agree on the need for more infrastructure spending. But during President Barack Obama’s term, Republicans pushed back on bigger government spending that would have driven up the federal deficit. It’s still unclear how much support congressional Republicans will throw behind a wider deficit, and how they will respond to the counter-proposal from the Democrats.
As The Times noted, the Congressional Budget Office will update its budget outlook on Tuesday morning in Washington DC. It’s expected to signal an expansion in the federal deficit if the growth of programs on healthcare and Social Security services is not contained.
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