President Joe Biden’s infrastructure czar warns that popular projects will be jeopardized if the US government defaults or if the debt-limit standoff with Congress results in changes to funding sources.
(Bloomberg) — President Joe Biden’s infrastructure czar warns that popular projects will be jeopardized if the US government defaults or if the debt-limit standoff with Congress results in changes to funding sources.
“It could absolutely get in the way,” Mitch Landrieu, the White House infrastructure coordinator, told reporters at a Thursday briefing.
In a default, federal officials would be directed to stop working on the projects, Landrieu said. “The ripple effect to the economy is going to be dramatic.”
A meeting between Biden and House Speaker Kevin McCarthy and other congressional leaders set for Friday was postponed as their aides continued negotiations toward a deal to raise the US debt ceiling and avoid a default.
Biden signed a bipartisan $550 billion infrastructure measure in November 2021 with a promise that it would improve Americans’ lives and keep the American economy moving forward. In the 18 months since, $220 billion has been awarded for about 32,000 projects.
“We’re pushing the money out of the door very aggressively,” Landrieu said.
Starting Monday, the White House will begin “Infrastructure Week” to mark the 18-month anniversary of the law, which provided new spending on roads and bridges, ports and airports, drinking water, broadband access and electric charging stations across the country.
Biden, who officially announced his 2024 reelection campaign last month, has traveled across the country this year to highlight infrastructure improvements. During a visit to New York City in January, he heralded work on the Gateway tunnel project intended to improve travel for workers crossing the Hudson River between New York and New Jersey.
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The infrastructure law invested $66 billion in passenger and freight rail, according to the White House. The administration has made $9 billion available for Northeast Corridor rail projects.
Overall, projects have been announced in 4,500 communities, according to the White House, but very few have been completed so far. More projects, including work on the Hudson tunnel project, will begin this summer.
And where work is taking place, passersby will be greeted by signs underscoring the Biden administration’s role in creating it.
“You’ll start to see signs on all these projects across the country that say this is part of Investing in America,” Landrieu said, calling it an effort to boost “transparency and accountability.”
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