President Biden is still unhappy with the Republican infrastructure offer after another session, this one by phone, with Senator Shelley Capito on Friday, White House press secretary Jen Psaki said.
Psaki said the West Virginia Republican, the GOP’s top Senate negotiator, had made a new offer with a $ 50 billion raise.
“The President expressed her gratitude for her efforts and goodwill, but also indicated that the current offer did not meet her objectives of economic growth, tackling the climate crisis and creating new jobs,” said the press officer in a press release. “He told Senator Capito that he would continue to engage a number of senators from both sides in the hope of reaching a more substantial package. They agreed to speak again on Monday.”
Republicans initially proposed $ 568 billion in infrastructure spending while the White House proposed $ 2.25 trillion. The White House fell to $ 1.7 trillion and Republicans to $ 928 billion, and differences still remained on how to pay for the proposal.
CAPITO AND BIDEN WILL REPAIR MONDAY
Biden and Capito already had a “constructive“Oval Office meeting on Wednesday, which prompted the follow-up phone call Friday afternoon.
Biden had previously offered to pay for the new infrastructure spending by raising corporate tax rates from 21% to 28%, which was a red line for Republicans. But he has since abandoned those plans and instead proposed a minimum tax of 15% for companies that pay very little.
Republicans had also offered to use reallocated Covid funds to pay a large chunk of their bill, but the White House said there was not enough funds that had not been spent to do so.
Biden has since agreed to use $ 75 billion in reallocated COVID funding for infrastructure and also wanted stronger IRS enforcement of current tax laws to generate more revenue. In return, Biden wanted $ 1,000 billion in new spending from Republicans. The GOP’s previous offer was only about $ 250 billion in new spending, and Republicans instead wanted to reprogram about $ 700 billion in current funds for coronaviruses.
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Biden has indicated he wants a bipartisan compromise on infrastructure, especially since he has campaigned on his ability to work with Republicans and build on his decades of Senate relations. But the Biden administration has also indicated that it will not wait indefinitely for Republicans to come to an agreement before trying to go it alone in a budget process that would allow it to bypass the obstruction at 60. vote and only require the support of the Democrats.
Fox News’ Marisa Schultz contributed to this report.