Airport Alert: Infrastructure Negotiations with GOP Break Down —New Proposals Now Enter the Mix
June 9, 2021
Yesterday, bipartisan negotiations on infrastructure between the White House and a group of Senate Republicans led by Senator Shelley Moore Capito (R-WV) reached an impasse, with both sides pointing fingers at one another as to the reason negotiations broke down. President Biden is now focusing his negotiating efforts on a bipartisan group of senators known as the G-20, as well as members of the House Problem Solvers Caucus.
Late last night, the House Problem Solvers Caucus, a bipartisan group of 58 House members, released its eight-year, $1.25 trillion proposal, which includes $762 billion in new spending above the projected baseline. For context, President Biden's most recent offer to Senate Republicans included about $1 trillion in new spending, versus the Republican plan, which only contained about $300 billion in new spending.
For airports, the Problem Solvers' proposal includes $41 billion, which we understand assumes current, baseline spending for the Airport Improvement Program (AIP) over eight years totaling $31 billion, plus a one-time increase of $10 billion. This is significantly less than President Biden's American Jobs Plan and the Senate Republican Roadmap, which both proposed about $25 billion in new funding to upgrade airports.
The Problem Solvers are coordinating their efforts with the White House, as well as key members of the G-20, including Senators Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ), who continue to be the decisive votes for whether Democrats are able to proceed with the partisan, reconciliation process. It is expected that the G-20, who met again yesterday, will release its own, separate proposal, which has been reported to be around $900 billion over five years, including current baseline spending.
However, it is unclear how much longer President Biden is willing to negotiate given that there is limited time before Congress recesses in August. While the Problem Solvers have offered a topline that is closer than Senate Republicans to President Biden's proposal, their plan avoids addressing how the new spending will be paid for, an aspect that derailed the previous negotiations. As such, President Biden has already spoken to Senate Majority Leader Schumer (D-NY) about moving forward with budget reconciliation to pass his original, $2.3 trillion American Jobs Plan.
As we enter this new phase in the infrastructure negotiations, it is critical that airports continue to engage with their Congressional delegations, particularly as new proposals are introduced and negotiations evolve. AAAE will continue to advocate for additional airport funding – including increased federal support and an overdue adjustment to the federal cap on local PFCs – in whatever package ultimately is agreed upon.
Yesterday, bipartisan negotiations on infrastructure between the White House and a group of Senate Republicans led by Senator Shelley Moore Capito (R-WV) reached an impasse, with both sides pointing fingers at one another as to the reason negotiations broke down. President Biden is now focusing his negotiating efforts on a bipartisan group of senators known as the G-20, as well as members of the House Problem Solvers Caucus.
Late last night, the House Problem Solvers Caucus, a bipartisan group of 58 House members, released its eight-year, $1.25 trillion proposal, which includes $762 billion in new spending above the projected baseline. For context, President Biden's most recent offer to Senate Republicans included about $1 trillion in new spending, versus the Republican plan, which only contained about $300 billion in new spending.
For airports, the Problem Solvers' proposal includes $41 billion, which we understand assumes current, baseline spending for the Airport Improvement Program (AIP) over eight years totaling $31 billion, plus a one-time increase of $10 billion. This is significantly less than President Biden's American Jobs Plan and the Senate Republican Roadmap, which both proposed about $25 billion in new funding to upgrade airports.
The Problem Solvers are coordinating their efforts with the White House, as well as key members of the G-20, including Senators Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ), who continue to be the decisive votes for whether Democrats are able to proceed with the partisan, reconciliation process. It is expected that the G-20, who met again yesterday, will release its own, separate proposal, which has been reported to be around $900 billion over five years, including current baseline spending.
However, it is unclear how much longer President Biden is willing to negotiate given that there is limited time before Congress recesses in August. While the Problem Solvers have offered a topline that is closer than Senate Republicans to President Biden's proposal, their plan avoids addressing how the new spending will be paid for, an aspect that derailed the previous negotiations. As such, President Biden has already spoken to Senate Majority Leader Schumer (D-NY) about moving forward with budget reconciliation to pass his original, $2.3 trillion American Jobs Plan.
As we enter this new phase in the infrastructure negotiations, it is critical that airports continue to engage with their Congressional delegations, particularly as new proposals are introduced and negotiations evolve. AAAE will continue to advocate for additional airport funding – including increased federal support and an overdue adjustment to the federal cap on local PFCs – in whatever package ultimately is agreed upon.
