Biden administration officials say they continue to support distributing the full $350 billion in state, local and tribal aid that was contained in the $1.9 trillion economic assistance package that Mr. Biden signed in March. How to pay for any new spending is a primary hurdle in the talks, with Mr. Biden pushing to raise taxes on corporations and Republicans preferring increased user fees like the gas tax. Repurposing unspent funds could help advance an agreement, particularly given Republican opposition to bankrolling state aid in previous rescue packages. Democrats pushed hard to include lucrative financial assistance for states, cities and tribes in Mr. Biden’s rescue bill. Republicans fought those efforts, warning they would serve as a “bailout” to high-tax, high-spend liberal states.

Source: New York Times May 25, 2021 07:00 UTC