PRESS RELEASE: CAPITO INFRASTRUCTURE TALKS COLLAPSING UNDER WEIGHT OF UNREASONABLE GOP DEMANDS, LEAVING RECONCILIATION AS ONLY VIABLE OPTION

FOR IMMEDIATE RELEASE
June 8, 2021

Contact: 
Maddy McDaniel, Communications Director

[email protected] or 914-471-7716

CAPITO INFRASTRUCTURE TALKS COLLAPSING UNDER WEIGHT OF UNREASONABLE GOP DEMANDS, LEAVING RECONCILIATION AS ONLY VIABLE OPTION


[@samjmintz]

Key Sticking Points:

  1. GOP Wants To Shift Costs From Corporations To Working FamiliesProtecting Tax Breaks For Companies That Ship Jobs Overseas While Cutting COVID Relief Funding For Essential Workers & Imposing User Fees
  2. GOP Wants To Cut Job Creating Investments: Demanding Deep Cuts To Job Creating Investments In US Manufacturing, Clean Energy, Caregiving, School Construction
  3. GOP Refusing To Budge: For Every $20 President Offered To Drop In Annual Investments, Republicans Only Offered To Increase By $1
POLLING: 50% Of Voters, Including 53% of Independents, Blame Republicans in Congress, Not President Biden, For Inability to Reach A Bipartisan Deal on the American Jobs Plan

51% of Voters Would Prefer to Pass the American Jobs and Families Plans Together Over Republicans’ Counter-Proposal

REMINDER: Senate Minority Leader Mitch McConnell At The Beginning of Infrastructure Negotiations: “100% of my focus is on stopping this new administration”

WASHINGTON, D.C. — Negotiations being led by Senator Shelley Moore Capito are collapsing after Republicans refused to come to the negotiating table with a reasonable counter-offer that walked back some of their unreasonable demands. While President Biden extended countless opportunities to meet Republicans in the middle, Senate Republicans refused to reconsider their demands to shift the costs onto working families, protect corporations that ship U.S. jobs overseas, and leave millions of jobs on the table.
Zac Petkanas, senior advisor for Invest in America Action, released the following statement: 
“While President Biden has proven he’s serious about striking a bipartisan deal, Senator Capito has effectively walked away from negotiations with her refusal to engage in further compromise or budge on her unreasonable demands.

“It is not reasonable for Republicans to require that an infrastructure bill raise taxes on working families through user fees, protect corporate tax breaks that encourage companies to ship jobs overseas, raid Covid relief funding needed to keep firefighters, police officers, and teachers on the job, and leave millions unemployed through deep cuts to clean energy, school construction, and caregiving investments.

“Millions of Americans are waiting for the job-creating investments in the American Jobs and Families Plans, and Senate Republicans have wasted enough of their time. By walking away from infrastructure negotiations, they’ve left President Biden and Democrats no choice but to move forward with reconciliation to pass a public investment package that will create millions of good-paying jobs and ensure our economic recovery.” 

BACKGROUND ON THE GOP COUNTER-PROPOSAL
The Republican plan would have shortchanged economic recovery in the states by raiding the American Rescue Plan funding that was meant to keep essential workers on the job. 
  • Underfunding the economic recovery in the states would put a drag on the country’s economy. In 2009, Republicans cut billions of dollars of state and local aid from the American Recovery and Reinvestment Act, and the results were devastating: 
    • States were forced to make disastrous cuts to education. Ten years after the great recession, state financial spending for higher education was still down 13%. In 2016, funding for K-12 education was lower in 29 states than it had been in 2008 — down at least 10% in nine of those states.
    • In the wake of the recession, state aid to localities was down by 5.3% — putting a strain on local budgets and exposing cities to greater risk of financial problems.
    • Overall, it took nearly a decade for state and local governments to return to pre-crisis employment levels. 
  • Repurposing covid relief funding would result in a massive loss of revenue for large and small communities alike, at precisely the moment they need to be doing everything to get our economy going again
    • Funding from the Plan is enabling large cities, small towns and rural communities alike to get back on their feet despite significantly lower tax revenues.
    • These funds are keeping police, teachers, and firefighters on the job, addressing cyber security and technology challenges exposed by the pandemic, and keeping programs and systems in place that Americans across the country rely on. 
The GOP’s counter-proposal would have stripped the funding in President Biden’s plan for job-creating investments in schools, caregiving, manufacturing, and clean energy, potentially preventing the creation of at least 1 million jobs and hurting American competitiveness.

Schools

  • The GOP plan cuts $137 billion in funding to upgrade and build new public schools, community college infrastructure, and child-care facilities.
  • Meanwhile, the American Society of Civil Engineers rated school infrastructure in the U.S. with a “D+” rating — and 28 million American students attend schools nationwide that need one or more building extensively repaired, overhauled, or replaced.
  • Research has shown “there is strong evidence that high-quality infrastructure facilitates better instruction, improves student outcomes, and reduces dropout rates.” Our school buildings’ structural faults “are significantly related to worse student achievement.” As such, proposals to eliminate school infrastructure investment are proposals to stunt our children’s educational growth and development.
Caregiving
Clean Energy: 
  • The American Jobs Plan would create between 1 million and 1.2 million jobs per year through investments in clean energy, according to Robert Polling, economics professor and co-director of the Political Economy Research Institute (PERI) at the University of Massachusetts-Amherst.
  • Experts have applauded the American Jobs Plan’s clean energy investments as “a significant step in meeting our collective clean energy goals.” Eliminating these investments would only worsen climate change and prevent us from achieving the clean environmental future we need.
  • By stripping investments in clean energy, the GOP plan would forfeit more than 1 million jobs and inhibit our fight against climate change. 
A multi-trillion dollar investment in infrastructure will create jobs and turbocharge the economy.
  • S&P Global estimates that $2 trillion investment in public infrastructure over 10 years would create 2.3 million jobs, grow personal income by $2,400, boost household spending by $3.5 trillion, and inject $5.7 trillion to the U.S economy — that’s 10 times what was lost during the Great Recession.
  • More than half of the millions of jobs created by infrastructure investments would go to blue collar workers without a college degree.
  • The time is right for a big investment — a $2 trillion infrastructure investment now could mean that each dollar spent will have a return of $2.70, according to S&P.
  • In 2017, the Georgetown University Center on Education and the Workforce estimated that a $1 trillion investment in infrastructure could create 11 million jobs.

“Infrastructure pays for itself if it’s done wisely. It’s the grease that keeps the economy moving along.” 

— Beth Ann Bovino, Chief U.S. Economist
at S&P Global 

About Invest in America

Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.

The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.

Learn more at InvestInAmericaNow.com and @InvestNowUSA, and InvestinAmericaProject.com.

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