House Democrats are putting infrastructure on the back burner in plans for a fourth coronavirus relief bill, hoping instead to build on previous legislation that included several tax provisions.
House Speaker Nancy Pelosi, D-Calif., wants the next legislative action to be a second iteration of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), with infrastructure serving as the focus of a later recovery package.
“CARES 2” should include more direct payments for families and additional support for small businesses, Pelosi said in an April 3 statement.
“The acceleration of the coronavirus demands that we double down on the downpayment we made in CARES by passing a CARES 2 package,” Pelosi said. “We must extend and expand this bipartisan legislation to meet the needs of the American people.”
Pelosi said on CNBC's Squawk on the Street that an infrastructure proposal “may have to be for a bill beyond this.”
Her statements contrast with comments she made to reporters a day earlier, in which she doubled down on Democrats’ commitment to passing an infrastructure package once they’re back in session after April 20 — a priority echoed by Rep. Nita M. Lowey, D-N.Y., in an April 3 address.
“Right now, House Democrats are writing legislation to further support workers and foster a strong recovery,” Lowey said. “And we can build a more resilient economy with robust investments in smart, safe infrastructure.”
House Republicans have so far been opposed to a fourth stimulus bill of any kind, saying they’d prefer to focus on proper implementation of the CARES Act rather than rushing to draft another bill.
Analyst Approved
Some tax policy analysts took to Twitter to express their approval of Democrats taking the fourth bill in a different direction.
“It makes a lot of sense and is the right call,” said Nicole Kaeding of the National Taxpayers Union Foundation.
Kyle Pomerleau of the American Enterprise Institute said the move seemed to be a “positive development.” He suggested the next bill could fix bugs from the CARES Act, expand support for state and local governments, and increase support for small and medium-size businesses.