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US House progresses $3.5 trillion safety net bill

Economy
25 August 2021 17:59 (AEST)

US House speaker Nancy Pelosi. Source: Reuters

House Democrats have been cleared to progress a $3.5 trillion safety net bill to accompany President Biden’s senate approved trillion dollar infrastructure plans.

Earlier this month, the Democrats released details of a proposed companion bill they believe could transform the American social safety net.

The plan is estimated to cost $3.5 trillion over 10 years and will expand programs tied to climate, education and healthcare, while raising taxes on corporations and Americans making more than $400,000 a year.

The House voted 220 to 212 on this larger companion bill, which would outline the framework of the proposed bill, however, the social safety net will still need to pass both houses.

This further funding ties in with the $1 trillion Senate-passed infrastructure bill, as members of the Democrat party believe it is not enough.

House Speaker Nancy Pelosi also said her chamber would work with the Senate to nail down the details of the $3.5 trillion budget.

“Passing an infrastructure bill is always exciting for what it means in terms of jobs and commerce in our country,” Ms Pelosi said.

“Now more than ever, it also has to be a part of protecting our environment.”

But centrist Democrats, led by Representative Josh Gottheimer, had refused to go along, saying the House must first pass the infrastructure bill, which has already won approval by Republicans and Democrats in the Senate.

House Republican leader Kevin McCarthy blasted Pelosi and other Democrats for working on an agreement to secure Biden’s domestic spending priorities and voting legislation without addressing the crisis in Afghanistan.

“Maybe in your caucus, you think it is a great day for you and the Democrats,” Mr McCarthy said.

“It’s an embarrassing day to America, it’s an embarrassing day for this floor and it’s embarrassing that you would even move forward with it.”

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