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Bipartisan Breakthrough Clears Way for Action on Infrastructure Deal

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The Senate voted on Wednesday to take up a $1 trillion bipartisan infrastructure bill that would make far-reaching investments in the nation’s public works system, as Republicans joined Democrats in clearing the way for action on a crucial piece of President Biden’s agenda, the New York Times reported. The 67-to-32 vote, which included 17 Republicans in favor, came just hours after centrist senators in both parties and the White House reached a long-sought compromise on the bill, which would provide about $550 billion in new federal money for roads, bridges, rail, transit, water and other physical infrastructure programs. Among those in support of moving forward was Senator Mitch McConnell (R-Ky.). McConnell’s backing signaled that his party was — at least for now — open to teaming with Democrats to enact the plan. The deal still faces several challenges to becoming law, including being turned into formal legislative text and clearing final votes in the closely divided Senate and House. If enacted, the measure would be the largest infusion of federal money into the public works system in more than a decade. The compromise, which was still being written on Wednesday, includes $110 billion for roads, bridges and major projects; $66 billion for passenger and freight rail; $39 billion for public transit; $65 billion for broadband; $17 billion for ports and waterways; and $46 billion to help states and cities prepare for droughts, wildfires, flooding and other consequences of climate change, according to a White House official who detailed it on the condition of anonymity.

House Judiciary Subcommittee Hearing Today to Examine Abuses of the Chapter 11 System

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The House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law will hold a hearing today at 10 a.m. EDT titled, "Oversight of the Bankruptcy Code, Part 1: Confronting Abuses of the Chapter 11 System." Click here to view a link to the live webcast.
 

Senate Braces for a Nasty Debt Ceiling Fight

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Republicans are digging in on the federal debt limit, warning Democrats that it will be up to them to avoid a default as President Biden pushes for trillions more in spending, The Hill reported. GOP senators are taking a firm line as Democrats plot a path for their $3.5 trillion spending measure, which the party plans to pass with budget reconciliation rules that will prevent the GOP from blocking it with a filibuster. Given those plans, GOP senators say they won’t lift a finger to help Democrats raise the debt ceiling. “I’m not sure why there’s much of an incentive right now given what the Democrats are doing, trying to run roughshod over the minority in the Senate, to help them,” said Sen. John Thune (S.D.). Thune added that if Democrats are going to use a go-it-alone approach to push through a sweeping spending package, which is expected to include other priorities like immigration reform, then Republicans believe "the debt limit can ride on it and they can own it all." The government will reach its spending limit on July 31, though the Treasury Department will be able to shuffle funds for an additional period to prevent the U.S. from breaking the ceiling. Actually doing so would cause a severe disruption to markets and the economy, as the U.S. government would be unable to meet demands from its creditors and pay its bills.
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Big Infrastructure Bill in Peril as GOP Threatens Filibuster

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The bipartisan infrastructure deal senators brokered with President Joe Biden is hanging precariously ahead of a crucial test vote as they struggle over how to pay for nearly $1 trillion in public works spending, the Associated Press reported. Tensions were rising as Republicans prepared to mount a filibuster over what they see as a rushed and misguided process. With Biden preparing to hit the road to rally support for his big infrastructure ideas — including some $3.5 trillion in a follow-up bill — restless Democrats say it’s time to at least start debate on this first phase of his proposals. “It is not a fish or cut bait moment,” Senate Majority Leader Chuck Schumer, D-N.Y., said, describing the procedural vote as just a first step to ”get the ball rolling” as bipartisan talks progress. Six months after Biden took office, his signature “Build Back Better” campaign promise is at a key moment that will test the presidency and his hopes for a new era of bipartisan cooperation in Washington. White House aides and the bipartisan group of senators have huddled privately since Sunday trying to wrap up the deal, which would be a first phase of an eventual $4 trillion-plus package of domestic outlays — not just for roads and bridges, but foundations of everyday life including child care, family tax breaks, education and an expansion of Medicare for seniors. Biden calls it a “blue-collar blueprint for building an American economy back.” He asserted that Americans are overwhelmingly in support of his plan and “that’s the part that a lot of our friends on the other team kind of miss.” The other team begs to differ.
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Klobuchar: Infrastructure Bill Could Include Voting Measures

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Congressional Democrats are exploring ways to include financial incentives for states to expand voting access as part of a multitrillion-dollar infrastructure bill, the Associated Press reported. Democrats have been struggling to get their marquee election reform bill passed in an evenly split Senate, where Republicans remain unified in their opposition and rules require 60 votes to advance most pieces of legislation. Sen. Amy Klobuchar (D-Minn.), who chairs the powerful Senate Rules Committee, said that the priority continues to be passing the legislation known as the For the People Act, which would usher in minimum voting standards in the U.S. such as automatic and same-day voter registration, early voting and no-excuse absentee voting. But Klobuchar noted that Democrats could also use the process known as reconciliation to advance financial incentives for states to adopt certain reforms. Election systems have been designated critical infrastructure on par with the nation’s power plants, banks and dams. “You can do election infrastructure in there because that is part of infrastructure,” Klobuchar said. “It’s no substitute for the For the People Act, but it is something we can start working on immediately and are working on right now.” Pushing election-related measures into the infrastructure bill would be a high-stakes gambit with no guarantee of success. Under the congressional budget process, certain measures regarding revenues, spending and the debt can be approved with a 51-vote threshold, which is why Democrats are pursuing it. The process allows them to bypass a near-certain filibuster from Republicans.
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Infrastructure Talks Stall Over Expanded IRS Powers

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Disagreements over expanding the Internal Revenue Service have snarled lawmakers’ efforts to firm up their roughly $1 trillion bipartisan infrastructure agreement before an initial vote next week gauging the deal’s support, the Wall Street Journal reported. In an hourslong meeting Thursday afternoon with White House officials, Republicans and Democrats who have spent weeks negotiating the deal again grappled with how to pay for it. Lawmakers and aides said the group may abandon an effort to raise revenue through enhanced enforcement at the IRS after some Republicans said they were concerned about granting the tax agency new power. Dropping that proposal would mean the group would need to find alternative ways to cover the full cost of the spending, roughly $600 billion of which is above projected future federal spending on roads, bridges, and water projects. Republicans had already questioned whether the plan would be fully paid for through a mix of repurposed federal funds, IRS enforcement, and public-private partnerships. “We’ve got a long way to go, payfors are still a big part of this that we really don’t have resolved yet,” said Sen. Mike Rounds (R-S.D.), one of the 11 Republicans who had previously endorsed the contours of the agreement. Eleven members of the Democratic caucus also have previously signed onto the deal, which a smaller group of lawmakers and President Biden first announced last month. Prodding the bipartisan lawmakers to close out their agreement, Senate Majority Leader Chuck Schumer (D-N.Y.) said yesterday that he would hold a procedural vote on the infrastructure agreement on Wednesday. Schumer also set a Wednesday deadline for Democrats to reach an agreement on a $3.5 trillion blueprint for approving much of President Biden’s legislative agenda, including investments in child care, education, and healthcare programs. Top Democrats have linked the two pieces of legislation, hoping to keep Democrats unified behind both efforts while attracting Republican support for the infrastructure plan.

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Judge Grants Another Delay in Getting Answers in Ohio House Bill 6 Case

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U.S. Bankruptcy Court Judge Alan Koschik gave Akron-based Energy Harbor a three-month delay in filing documents that detail how four hired guns intervened in Ohio Statehouse politics and House Bill 6, the Columbus Dispatch reported. Last year, Judge Koschik told four men at Akin Gump Strauss Hauer & Feld to give him answers about their involvement in legislative races and getting the energy bill passed. Energy Harbor hired Akin Gump, an international law firm, to help with its bankruptcy and lobbying efforts. In January, Judge Koschik agreed to a six-month delay to getting answers. Energy Harbor attorney Jonathan Streeter yesterday told Judge Koschik that the men completed the "declarations" but making those statements public while Energy Harbor cooperates with federal prosecutors would be detrimental. Energy Harbor needs more time to cooperate with federal prosecutors in secret, he argued. Energy Harbor, formerly known as FirstEnergy Solutions and owner of two nuclear power plants in northern Ohio, filed for chapter 11 bankruptcy in March 2018 and emerged in February 2020. During that time, state lawmakers passed a $1.3 billion bailout bill that would provide a subsidy to keep the nuclear plants operating as well as other perks to utilities.