While many Republicans will balk at the cost of the bipartisan infrastructure package, which the CBO said would add $256bn (1.1% of GDP) to the deficit over the next decade, that is unlikely to derail the entire package, which faces a crucial Senate vote later this weekend. Even though the impact on the deficit will be larger than we initially anticipated, the economic impact will still be modest because that spending will take a few years to ramp up and will in any case be spread over the rest of the decade.
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