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Biden admin to ‘expand the definition of infrastructure’ while seeking first major tax hike since 1993 to fund ‘Build Back Better’

(Reuters) – With a $1.9 trillion COVID relief package finally passed, U.S. President Joe Biden’s next big spending push is already on the horizon – repairing the nation’s ailing bridges, roads and airports and investing billions in new projects like broadband internet.

Biden may sketch the outline of the plan, promised on the campaign trail, in a joint address to Congress this month and provide details in April, giving lawmakers several months to work on the bill before an August recess, people familiar with the White House plans said.

The White House has added infrastructure experts to the administration in recent weeks, and called in lawmakers and companies to discuss the topic.

With a narrow majority in Congress, Biden and Democrats need to either move all or parts of the package through a budget process that would only require party-line votes known as reconciliation, or attract Republican votes and make it a bipartisan effort.

Either way, Reuters’ interviews with lobbyists, lawmakers, administration officials and company executives show broad questions still need to be answered before any bill can be written.


Biden and his fellow Democrats hope to expand the definition of infrastructure beyond existing transportation architecture to include items aimed at tackling climate change and its effects, echoing the $2 trillion, 10-year “Build Back Better” proposal floated during his campaign.

That includes investments in electric vehicle charging stations, zero-emission buses and zero-carbon electricity generation by 2035, and directing dollars to minority neighborhoods and contractors, part of a pledge to increase racial equity.

Democrats have signaled they want to invest billions in creating and refurbishing affordable housing in any package and expand broadband internet access to all Americans, particularly in rural communities.

U.S. House of Representatives Speaker Nancy Pelosi said on Friday that she had directed senior Democrats to begin working with Republicans on a “big, bold and transformational infrastructure package.”

Republicans and influential trade groups like the U.S. Chamber of Commerce support large-scale infrastructure spending, but not Democratic efforts to inject climate change or equality policy into a spending bill.

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Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, said in an interview his “tentative timeline” is for the committee to complete action on its portion of an infrastructure bill before the end of May.

He said a proposal could be divided between reconciliation to raise revenue and direct funds and traditional legislative procedures to set policy.


House Democrats passed a $1.5 trillion infrastructure package last year that died in the Senate, but could be a blueprint here. It was one-third funded from existing fuel taxes and budget transfers.

Leading Democrats suggest doing away with Trump’s 2017 tax cuts or imposing new taxes on the super wealthy – ideas that are a non-starter for most Republicans and some Democrats.

Some economists and business groups have suggested lawmakers should forget about finding new funding for the whole package and instead borrow some of the money given the historically low cost of debt and economic growth projections.

Others, including the U.S. Chamber of Commerce, suggest creating a federal infrastructure bank that can lend money at cheap rates to private companies.