By Jarrett Renshaw and Susan Cornwell
WASHINGTON (Reuters) – Democrats threaten to scrap plans to create an infrastructure bank in the $ 1.2 trillion bipartisan spending bill after Republicans opposed a provision aimed at raising wages for workers. workers, according to three people familiar with the discussions.
The decision to eliminate funding for the bank would aim to resolve a bottleneck over US President Joe Biden’s main legislative initiative as lawmakers rush to finalize key details of the plan ahead of the typical August Senate recess. .
The group of bipartisan lawmakers seeking to craft Biden’s infrastructure bill wants to include $ 20 billion for a newly created infrastructure bank that would attract investment through public-private partnerships.
But Republicans will not agree to the funding unless the bill does not meet the requirements to follow the Davis-Bacon Act, which requires contractors to pay prevailing wages, usually higher levels set by the unions.
The $ 20 billion in funding would attract significantly more from the private sector and could be used to pay for green energy projects, such as wind and solar, that the administration is counting on to help slow climate change and meet carbon targets. Biden’s zero net. .
A White House spokesman declined to comment.
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