While Congress was out of session this week for the Memorial Day break, talks between the White House and Senate Republicans on infrastructure continued. Both sides appear to be moving towards a price tag of $1T, but the stumbling block to an agreement may be how to pay for the programs.

West Virginia Senator Shelley Moore Capito has been designated by Leader McConnell to be the principal negotiator for Republicans. President Biden, an experienced pro in Senate negotiating, is personally leading the White House team. What is becoming obvious is that the President is more interested in a bipartisan deal than many Congressional Democrats and even some progressive White House staff members.

Another factor that emerged this week is the ruling by the Senate Parliamentarian that makes it very unlikely that Democrats in Congress will get a second bite at Reconciliation for the 2021 fiscal year that began on October 1, 2020. The massive American Rescue Plan, that passed on a party line vote, was approved under Budget Reconciliation for FY 2020. The Budget Act of 1974 allows for Congress to take a two-step budget process that avoids Senate filibusters. Under the Budget Act Congress first approves a budget and then a related Reconciliation Bill that makes changes in spending and rev...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free