Senate GOP unveils its $928 billion infrastructure counteroffer to Biden — here's what's in it - CNBC

Senate Republicans unveiled their $928 billion infrastructure counteroffer to President Joe Biden on Thursday, as the sides see whether they can bridge an ideological gulf to strike a bipartisan deal.

The plan includes:

$506 billion for roads, bridges and major infrastructure projects, including $4 billion for electric vehicles
$98 billion for public transit
$72 billion for water systems
$65 billion for broadband
$56 billion for airports
$46 billion for passenger and freight rail systems
$22 billion for ports and waterways
$22 billion for water storage
$21 billion for safety efforts
$20 billion for infrastructure financing

Biden's latest offer to Republicans came in at $1.7 trillion — $600 billion less than his original plan. He has urged the GOP to put at least $1 trillion into an infrastructure package.

Senate Minority Leader Mitch McConnell, R-Ky., told CNBC the GOP could make additional offers after Thursday's proposal.

"We're going to keep talking, and I understand the president is willing to keep talking," he told "Squawk on the Street" on Thursday. "We'd like to get an outcome on a significant infrastructure package."

To reach a deal, the sides would have to resolve not only a gap in the price tag but also differing visions of how to offset the spending. In their counteroffer, Republicans again rejected Biden's call to raise corporate taxes, contending they could cover infrastructure costs with funds already allocated by Congress or with transportation user fees.

The White House did not immediately respond to a request to comment on the senators' offer. Sen. Elizabeth Warren, D-Mass., said it wasn't "a serious counteroffer."

"First of all, they don't have 'pay-fors' for this, it's not real," the progressive Democrat told MSNBC. "They have this illusory notion of how we're going to take money that's already been committed to other places and other spending."

The GOP proposal does not include Biden administration priorities such as $400 billion for home health care, $100 billion for electric vehicle consumer rebates or spending to upgrade housing and schools.

Republicans and the White House have moved closer to agreement on an infrastructure plan but still need to resolve fundamental issues about the scope of a package and how to pay for it, a GOP senator leading the talks said Thursday. Sen. Shelley Moore Capito said the sides are "inching closer" in negotiations ahead of Memorial Day, the date by which the White House wanted to see progress in bipartisan negotiations.

"We're still talking. I'm optimistic, we still have a big gap," the West Virginia Republican told CNBC's "Squawk Box." "I think where we're really falling short is we can't seem to get the White House to agree on a definition or a scope of infrastructure that matches where we think it is, and that's physical, core infrastructure."

"The White House is still bringing their human infrastructure into this package and that's just a nonstarter for us," she continued, referring to Biden's plans to put money into programs including care for elderly and disabled Americans.

It is unclear if the two parties can overcome broad ideological differences over what constitutes infrastructure, and how to pay for improvements to it, to strike a bipartisan deal. If negotiations do not show promise, Democrats will have to decide whether to try to pass an infrastructure bill on their own using special budget rules.

From left, Sen. John Barrasso, R-Wyo., Sen. Shelley Moore Capito, R-W.Va., and Sen. Roy Blunt, R-Mo., hold their news conference in the Capitol to announce the GOP infrastructure counteroffer on Thursday, May 27, 2021.

Bill Clark | CQ-Roll Call, Inc. | Getty Images

The process would bring its own headaches. Senate Democrats would have to keep all 50 members of their caucus on board and comply with strict rules about what can go into a budget reconciliation bill.

The GOP senators who crafted the offer to Biden mentioned that lawmakers could redirect unused coronavirus relief funds for state and local governments to infrastructure, or implement user fees on transportation like electric vehicles. Those Republican solutions could put Biden in a bind.

The president has promised not to raise taxes on anyone who makes less than $400,000 per year. User fees or an increase to the gas tax would put an extra burden on many Americans whose incomes falls under the threshold.