- Senate Democrats have agreed on a $3.5 trillion reconciliation package.
- The package would stand at $4.1 trillion with new infrastructure spending.
Senate Democrats on Tuesday announced they'd struck a deal on a $3.5 trillion price tag for an infrastructure package to expand Medicare and strengthen social-safety-net programs — and skirt Republicans staunchly opposed to more federal spending.
Combined with a $579 billion bipartisan infrastructure deal, the party-line agreement would amount to $4.1 trillion in fresh spending. It would be among the largest spending bills ever taken up by Congress, as Democrats aim to wield their slim majorities and level the playing field within the economy.
—Steven Dennis (@StevenTDennis) July 14, 2021
"This is the most significant piece of legislation passed since the Great Depression, and I'm delighted to be part of having helped to put it together," Sen. Bernie Sanders, the chair of the Senate Budget Committee, told reporters on Tuesday evening. He's pushed for a party-line package larger than $3 trillion in recent days.
The plan is poised to undergo an arduous reconciliation process, a legislative tactic requiring only a simple majority to pass a bill. In a 50-50 Senate, that means Democratic senators must stick together for the plan to succeed over united Republican opposition.
The agreement didn't include many specifics on which policies would ultimately be included. Senate Majority Leader Chuck Schumer said it would expand Medicare to cover vision, dental, and hearing services. The Congressional Budget Office projected in 2019 that that would cost $358 billion over 10 years.
Democrats leaving the negotiations expressed confidence about the top-line agreement and said they would turn it into a bill in the coming weeks. "We are very proud of this plan. We know we have a long road to go," Schumer told reporters.
A Senate Democratic aide granted anonymity to speak candidly said Democrats recognized that they face an arduous process. "We don't know what's happening with the bipartisan deal," the aide said. "This is the first baby step."
Sen. Mark Warner of Virginia said that the spending would be "fully paid for" with tax increases. Democrats have labored to avoid tax hikes on households earning under $400,000, in keeping with President Joe Biden's campaign pledge.
Democrats now face a complex balancing act. The bipartisan infrastructure bill focused on roads and bridges could face greater Republican opposition, given that its passage could pave the way for a Democratic spending bill topping $3.5 trillion. House Speaker Nancy Pelosi has been firm in her insistence that a bipartisan bill wouldn't get a vote until the Senate clears the reconciliation package.
"Schumer and Pelosi are still talking linkage, and I think that's problematic for a lot of our members," said Sen. John Thune of South Dakota, the top GOP vote-counter.