Congress returned this week but it was slow on plotting next steps on the big issue of infrastructure and corporate taxes. On the sidelines of Congress there have been a few discussions continuing the elusive effort to find a bipartisan way forward on infrastructure.

Delaware Senator Chris Coons, who is very close to President Biden, floated the idea of breaking the infrastructure package into two baskets: one the more traditional definition of infrastructure and a second that might include ideas from progressive Democrats such as housing and childcare facilities. The thought is that the more traditional roads and bridges could get bipartisan support and pass under regular order; while the new ideas related to social structure would be hammered out among Democrats and considered under the narrower Budget Reconciliation process.

While the idea has not been widely embraced, it has also not been immediately rejected. For many Democrats it would increase the chances that at least some large infrastructure bill would be approved even if some of the ideas on the progressive agenda have to wait. The more progressive ideas were always going to have a problem getting the support of the moderate Democrats led by West Virginia Senator Joe Manchin, and a two-tier approach could deliver a nearly trillion dollar package in the fall and lay the groundwork for Democratic campaigns in 2022.

Democrats Narrowing Majority

The return of Congress saw the swearing in of the newest House Member Louisiana Republican Julia Letlow who was elected to replace her husband who died on December 29, 2020. Letlow brings the Republican numbers up to 212 Members, and with the death of Democrat Alcee Hastings and vacancies created by Members joining the Biden Administration, Pelosi’s caucus is down to just 218 Members or a margin of just six votes.

Japan and US

Under the radar screen this week the President hosted his first foreign leader, Japanese Prime Minister Yoshihide Suga. The two leaders had talks that focused on China and the global supply chain issue. While former Japanese Prime Minister Abe had a good personal relationship with President Trump, built on their mutual love of golf, it didn’t stop threats against Japan, especially their auto industry. The visit of PM Suga is welcomed by the Japanese as a hopeful return to more normal relations based on the mutual values both nations have shared since the end of WWII.

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