Yellen Warns Against Neglecting Biden’s Spending Plans

The United States Secretary of the Treasury, Janet Yellen, is warning against partisan disagreements over the huge infrastructure investment plan, proposed by President Joe Biden.

A copy of Yellen’s remarks was obtained earlier today by CNBC, ahead of a speech that she will give on Wednesday in Atlanta.

Yellen reportedly wants to rally the public behind the bipartisan infrastructure bill, as well as the Democrats’ proposal for a $3.5 trillion budget.

She views the investments in infrastructure, job creation, and other areas as essential for America to maintain leadership among global economies.

“My largest concern is not: What are the risks if we make these big investments? It is: What is the cost if we don’t?”

Yellen told Congress that the Treasury is taking extra steps to ensure avoid default after Congress failed to extend the suspension of the debt ceiling, expressing in a written letter to lawmakers that resolving the issue would be the better choice.

Yellen is urging Congress to act as soon as possible on the debt ceiling after the two-year suspension expired on August 1.

The Treasury Department has lowered the estimates of public borrowing during the third quarter of the year to $673 billion. The estimated amount is lower by $148 billion compared with previous estimates, due to lower public expenditure, with an estimated cash balance of $750 billion by the end of September. In the fourth and final quarter of the year, the Treasury expects borrowing $703 billion and a cash balance of $800 billion.

The U.S. Treasury Department could theoretically run out of cash to pay bills in October or November, if the debt limit is not increased, according to estimates by the Congressional Budget Office.

Last week, the Senate voted on a large bipartisan infrastructure bill, at an estimated cost of around $550 billion in investments.

A total of 67 Senators approved the bill, while 32 opposed it, in the first procedural step to debate the proposed plan by President Joe Biden.

Despite the recent bipartisan negotiations, sponsored by the Biden administration, only 17 Republican Senators voted in favor of the draft bill that aims to allocate huge investments in renovating infrastructure, utilities, and other services, creating millions of jobs for the American economy.

Nonetheless, Democrats need the support of only 10 Republicans to pass the bill.

Under the bill, spending on roads and bridges is estimated at $110 billion, with $73 billion on the electric grid, railway development will get about $66 billion, while $39 billion will be allocated to public transportation and another 25 billion for airports.

Meanwhile, expanding broadband services will see investments of $65 billion, while drinking water and environmental projects will obtain $55 billion and $50 billion, respectively.

Another plan worth about $3.5 trillion remains in place and could be discussed following the passing of the infrastructure bill, and will focus on providing social care, which will likely be passed through the reconciliation option with a simple majority in the Senate.

Chairman of the Senate Budget Committee, Bernie Sanders, said the Democrats could pass the budget resolution soon. The plan will tackle tax and immigration reforms, health care, and climate change.