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Quick Explainer on the Infrastructure Bills

I asked my readers on Instagram if they’d appreciate an explainer on the infrastructure bills and they overwhelmingly said yes. So let’s do this!

You’ve no doubt heard a variety of different price tags and lists of what is and isn’t in the bills. But the most important thing to remember is that there are TWO BILLS — the bipartisan bill and the reconciliation bill.

The bipartisan bill

A group of 5 Democrats and 5 Republicans worked together with the Biden administration to write this bill. The bipartisan bill is being passed in the Senate through regular order — that means it must pass the initial 60 vote threshold to bypass a potential filibuster before moving on to a final vote. And yesterday, the Senate passed this bill 69-30. Mitch McConnell and 18 other Republicans voted for it. It now must pass the House with a simple majority.

What’s in this historic $1.2 trillion bill:

The reconciliation bill

The second infrastructure bill is being driven by Democrats and will bypass the need for 60 votes in the Senate by using a process called reconciliation. It’s exempt from the filibuster rule because these are essentially budget bills. There are many rules regarding how to use reconciliation but an important one is that it can only be used once per fiscal year.

Republicans tend to talk about infrastructure in a very narrow sense, while the Democrats have a more expansive view. Biden likes to call it “human infrastructure.” I looked for a way to explain this idea and loved this from an Atlantic article:

“Technological systems like highways or electric grids cannot function without an educational system to train those who build and maintain them, or a labor market to keep them staffed. … Speaking of infrastructure merely as the physical components obscures all the other necessary ones.”

Although this $3 – 3.5 trillion bill has not been finalized yet, here are some of the items that have been in discussion:

As the pandemic has made clear, needing to take care of children or elderly parents or sick family members takes people — often women — out of the workforce. Investing in these “human infrastructure” projects creates jobs and helps put more people back to work, which boosts the economy.

What happens now?

The Senators passed the bipartisan bill and immediately got to work on the reconciliation bill. Expect zero Republicans to pass this second bill. Then, the House will need to pass the bills. Speaker Nancy Pelosi has insisted that the Senate send over both bills before she sets up a vote — i.e. she wants to pass both of these bills at the same time.

The thought there is that the progressives are less happy with the bipartisan bill but they do like the reconciliation bill, and similarly, moderate Democrats are a bit uneasy with the reconciliation bill but like the bipartisan bill. (Remember, they are all looking at their re-election campaigns coming up in a year’s time — they need to be able to explain their votes to their voters.) By passing them both together, it gives any flavor of Democrat a great narrative to sell to their voters.

So, yesterday was a great start and we should continue to have a pretty exciting August when it comes to infrastructure!


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