The White House is casting doubt on Republican calls to redirect unspent COVID-19 funds to pay for some of President Joe Biden’s $1.7 trillion-plus infrastructure package.
There are not “hundreds of billions of dollars” in unused federal COVID-19 dollars that could be shifted, according to White House principal deputy press secretary Karine Jean-Pierre.
“As of the end of March, about 95% of the $3 trillion in pre-Rescue Plan COVID relief funding has either been obligated or is for PPP, unemployment insurance, or nutrition assistance, where the money is going out as planned to specific businesses and people,” she told reporters Wednesday during her first briefing from behind the podium. PPP stands for the Paycheck Protection Program, a federal loan program helping small businesses retain their employees.
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Unobligated funds accounted for the remaining 5%, of which the largest categories covered healthcare providers, rural health services, and small-business disaster loans, Jean-Pierre said.
Senate Republicans are expected to unveil their second counteroffer Thursday. Mississippi Sen. Roger Wicker hinted it will propose $1 trillion in spending, an increase from their $568 billion proposal. Senate Minority Leader Mitch McConnell had earlier suggested his conference was prepared to support up to $800 billion in infrastructure spending.
Jean-Pierre repeated Wednesday that Biden’s main nonnegotiable demand is that taxes not be raised for people earning less than $400,000 a year as the two sides discuss the scope of a possible bipartisan deal and how to pay for it.
The White House announced last week that it had repackaged its $2.3 trillion infrastructure proposal into a $1.7 trillion plan. It did so by shifting desired investments in research and development, supply chains, manufacturing, and small business to other bills, such as the Endless Frontier and CHIPS measures.
“The proposal also agreed to reduce the funding request for broadband to match the Republican offer and to reduce the proposed investment in roads, bridges, and major projects to come closer to the number proposed by the senators,” White House press secretary Jen Psaki said at the time.
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Some Democrats say they could back user fees as a potential pay-for, including Sens. Tom Carper of Delaware, Kyrsten Sinema of Arizona, and Mark Warner of Virginia. The White House, however, ruled out that option this month in favor of taxing the wealthy.
