White House says it takes inflation 'incredibly seriously' as spending ramps up

The White House on Tuesday said it takes inflation "incredibly seriously" after the Senate passed a $1 trillion bipartisan infrastructure spending package. 

White House press secretary Jen Psaki was asked Tuesday whether officials were concerned that the increased government spending could lead to inflation. 

SENATE APPROVES $1 TRILLION INFRASTRUCTURE PLAN

"We take inflation incredibly seriously; it is, of course, under the purview of the Federal Reserve," Psaki said, adding that there are provisions in the spending that would ask corporations and "the highest, wealthiest individuals to pay a bit more." 

"This is something…the vast majority of the American public supports," Psaki said, adding that it is also "in our interest to help pay for these vital investments." 

"But I would note we take it seriously, we watch it closely, and the Federal Reserve, who has a purview, has predicted, or put a forecast, that we expect to go up a bit this year," Psaki said. "We’ve long anticipated that, but to come back down to normal levels next and those are the projections." 

Psaki went on to say that the $1 trillion infrastructure investment is "vital," calling it "long overdue." 

"It’s important to modernize our infrastructure and make sure kids have access to clean drinking water," Psaki explained. "It’s also designed as a plan that would be implemented over the course of eight years—It wouldn't be a huge injection immediately into the economy." 

She added: "We are confident and comfortable with the strategic approach of Speaker Pelosi. The president, of course, looks forward to signing each of these pieces of legislation into law." 

The Senate passed the $1 trillion spending package Tuesday on a 69-30 vote, with 19 Republicans, including Senate Minority Leader Mitch McConnell, R-Ky., joining all Democrats to approve major investments to the nation’s roads, bridges, railways and more. 

"Big news, folks," President Biden tweeted immediately after the victory. "The Bipartisan Infrastructure Deal has officially passed the Senate. I hope Congress will send it to my desk as soon as possible so we can continue our work of building back better."

WHAT'S INCLUDED IN THE BIPARTISAN INFRASTRUCTURE BILL?

The final passage vote was a culmination of a monthslong rocky effort between a group of bipartisan senators and the White House intent on showing the country that Republicans and Democrats can still work together to fix the nation's crumbling infrastructure. 

The bill that passed Tuesday is dubbed the Infrastructure Investment and Jobs Act and it allocates spending for roads, bridges, rails, waterways, public transit, power systems, airports and broadband internet access. 

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The Congressional Budget Office (CBO) determined the legislation wouldn't be fully paid for – as its authors had originally said – and instead would add $256 billion to the deficit over the next 10 years.

Senate Majority Leader Chuck Schumer, D-N.Y., though, pivoted to advancing a massive $3.5 trillion budget bill, immediately calling a procedural vote to begin debate on the Democrats' budget plan, which passed along party lines: 50-49.

The final passage of the $3.5 trillion budget blueprint in the Senate in the coming days is critical because House Speaker Nancy Pelosi, D-Calif., said she would not allow a standalone vote on the narrower $1 trillion bipartisan infrastructure deal unless it's paired with the bigger package that liberals have demanded.

The House is currently in summer recess but is expected to take up infrastructure after members return to Washington in September. 

Fox News' Marisa Schultz and Thomas Barrabi contributed to this report.