Infrastructure Deadline Punted to Halloween
By Tom Kozlik, Head of Research of Analytics
The new target deadline for Democrats to vote on the $1.2 trillion bipartisan infrastructure plan is Oct. 31. This date coincides with the shifted Surface Transportation Authorization deadline, which was temporarily extended for 30 days over the weekend.
Progressive Democrats are still linking the passage of the bipartisan plan to their $3.5 trillion social spending Build Back Better agenda. The idea of potentially reducing spending to just over $2 trillion was floated Friday, despite West Virginia Senator Joe Manchin saying his ceiling is $1.5 trillion.
Now Democrats have a few more weeks to negotiate within their party. Lawmakers will need to decide if they will be required to drop lower priority programs, simply reduce the number of years for which they are effective, or make other changes to reduce their cost. Either way, it is possible the public finance related elements could be pared back.
Additionally, the Oct. 18 debt ceiling deadline remains, therefore lawmakers will need to act on this soon.