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Key negotiators expect Senate Budget Committee to agree on roughly $ 3.5 trillion reconciliation package as the starting point for Democrats-only bill for ‘soft’ infrastructure people familiar with the matter told Axios.
Why is this important: That total is well below the $ 6 trillion that Senator Bernie Sanders – the Vermont independent who heads the committee – originally proposed. Adopting him would be a blow to his progressive colleagues.
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The emerging deal, however, will cover all of the Biden administration’s main proposals on intangible infrastructure, including the president’s families, climate and housing programs, according to a source familiar with discussions on the Senate budget resolution.
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While negotiators are still finalizing details, the proposal is about to be fully offset by new income, among other payments.
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The roughly $ 3.5 trillion could be further reduced once the Senate is complete – including centrists like Sens. Joe Manchin (DW.Va.), Kyrsten Sinema (D-Arizona) and Jon Tester (D-Mont.) – extract their own requirements.
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The package will need the support of all Senate Democrats to pass.
Driving the news: Sanders is still pushing for high numbers, telling The New York Times’ Maureen Dowd in an interview on Sunday that $ 2,000 billion to $ 3 trillion is “way too low.”
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Sanders will have to convince committee centrists such as Sen. Mark Warner (D-Va.), Who did not reveal his leading number but privately suggested that it was more in the 3-4,000 range. billions of dollars.
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After two weeks of negotiations with staff, senators on the budget committee are expected to meet on Monday evening to try to bridge differences over the total size of the package and how much it is to be paid for with new income.
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“A lot of work has gone into the effort and there is still a lot to do,” said Mike Casca, spokesperson for Sanders. “Senator Sanders has written a $ 6 trillion proposal to address the desperate needs of workers and the existential threat of climate change, and he is confident Democrats will come together around a reconciliation bill that does exactly that. “
The big picture: Senate Majority Leader Chuck Schumer (DN.Y.) has said he wants both the budget resolution and the bipartisan infrastructure package to be passed by the entire Senate before senators leave for their August vacation.
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This timeline will put pressure on senators worried about having part of their vacation canceled, which could complicate lawmakers’ fundraising plans.
Go further: Revenue is emerging as a key dividing line within the Democratic caucus, with centrists like Manchin arguing that the new spending will have to be paid for with new taxes.
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Other centrists are uncomfortable with too high an increase in corporate taxes, capital gains and personal income, which in turn caps any new spending.
Between the lines: The White House is taking a wait-and-see approach and wants to give Senate Democrats space to compromise.
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House centrists have no interest in voting for anything that cannot get through the Senate, including tax increases, putting most of the action in the Senate.
Editor’s Note: This story was updated with a comment from Mike Casca, spokesperson for Sanders.
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