President Joe Biden shot down the Republican counter-proposal which was nearly $50 billion more than their last $257 billion proposal.

The proposal from the main Republican negotiator on infrastructure, Senator Shelley Moore Capito was straight on rejected by the president saying that the offer "did not meet his objectives to grow the economy, tackle the climate crisis, and create new jobs."

The two sides have agreed to continue the talks on Monday, while the White House has made it clear that the president will continue to discuss the plan with the lawmakers from both parties.

"He indicated to Senator Capito that he would continue to engage a number of Senators in both parties in the hopes of achieving a more substantial package," White House spokeswoman Jen Psaki said in a statement.

Up until now, Capito has been Biden's primary negotiating partner. Monday's conversation will be their third in a week.

Biden is eager to show that he made a good-faith effort at a bipartisan deal, sources said, but he risks creating division among Democrats, some of who believe he is giving up too much to Republicans. Democrats hold narrow majorities in both the House of Representatives and Senate.

A Capito spokesperson offered scant detail of what was discussed on the call, saying that they "continued negotiating" and discussed both sides' views.