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Biden’s Agenda: Defining Fall Policy Sprint—

Infrastructure, Fiscal Cliffs, and America’s Global Role

Ed Mills, Managing Director, Washington Policy Analyst, Equity Research

Passing the bipartisan infrastructure deal, negotiating a
budget reconciliation package, funding the government We believe the most likely final outcome
for the next fiscal year, raising the U.S. statutory borrowing remains passage of an overall economic package
limit (‘debt ceiling’), and settling key defence and foreign between $2 trillion and $3 trillion, with tax
increases and other revenue changes to offset a
policy decisions top a long list of priorities in DC. Add in significant portion of the new funding.
a variety of must-pass deadlines creating a series of fiscal
cliffs, and we could see a fairly volatile several months in
DC. infrastructure and domestic priorities, faces a series of critical tests
in the coming weeks. The process is likely to be complicated by
The market impact will depend upon the overall success or failure political negotiations and various fiscal cliff deadlines. However, we
of these efforts, with a debt limit being a top near-term concern. believe the most likely final outcome remains passage of an overall
Longer term, the market will be closely watching the tax and economic package between $2 trillion and $3 trillion, with tax
spending decisions of the reconciliation bill. Overall, we expect increases and other revenue changes to offset a significant portion
2021 to end with the finalisation and passage of Biden’s ‘Build Back of the new funding.
Better’ infrastructure and domestic agenda before DC transitions The portion with the greatest clarity and highest probability of
to a midterm election year that will determine control of the House passage is the bipartisan infrastructure package that has already
and Senate for the remainder of Biden’s term.
cleared the U.S. Senate and includes approximately $550 billion in
new infrastructure spending. The bipartisan portion broadly targets
LEADING THE CHARGE: FINALISING AND PASSING new funding for roads and bridges, rail, transit, ports, airports,
BIDEN’S ‘BUILD BACK BETTER’ ECONOMIC PACKAGE water systems, power and grid, electric vehicles, and broadband.
President Biden’s ‘Build Back Better’ plan, aimed at funding

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