TRG | The Bottom Line – 7/30

The U.S. Senate this week advanced a bipartisan framework for investing an incremental $550B over 5 years in traditional infrastructure, including $110B for roads and bridges (a ~49% increase over the FAST Act baseline funding). The Senate will now draft the full text hoping to avoid sensitive potholes, such as pay-fors, that could alienate precarious support.  Should the bill ultimately pass in the Senate, the often “one step forward two steps back” process faces headwinds in the U.S. House. Speaker Pelosi has warned she will not bring a traditional infrastructure bill the floor without the currently defined $3.5T human infrastructure bill having also passed the Senate. An August recess and the thought of cooler weather in September may allow for more agreeable conversation. But as the President himself said, “There is still plenty of work ahead to bring this deal home.”