FIRST LOOK: President Biden Rolls Out $2.25 Trillion Infrastructure Plan
Washington D.C. – President Joe Biden is rolling out his infrastructure plan in two parts, and today, the White House unveiled the first installment which comes with a more than $2 trillion price tag.
The first installment of President Biden’s infrastructure proposal is an eight-year $2.25 trillion spending plan funded with business tax hikes over 15 years.
In a Fact Sheet released by the White House, the Biden Administration is billing the proposal as the “American Jobs Plan,” saying it represents an “historic and overdue investment in our roads, bridges, rail, ports, airports, and transit systems.”
However, the proposal is filled with much more than what Americans have commonly understood to be infrastructure-related projects.
Let’s take a more in-depth look at just some of what President Biden is proposing.
Bridges and Interstates
The President is proposing $115 billion to “modernize” 20,000 miles of bridges, highways, roads, and main streets.
“It will fix the most economically significant large bridges in the country in need of reconstruction, and it will repair the worst 10,000 smaller bridges, including bridges that provide critical connections to rural and tribal communities,” the White House said. “The plan includes $20 billion to improve road safety for all users, including increases to existing safety programs and a new Safe Streets for All program to fund state and local ‘vision zero’ plans and other improvements to reduce crashes and fatalities, especially for cyclists and pedestrians.”
In addition, the proposal calls for $20 billion for a new program to “redress historic inequities” in the interstate highway system the White House says will “ensure new projects increase opportunity, advance racial equity and environmental justice, and promote affordable access.”
The plan calls for doubling federal funding for public transit and investing $85 billion to “modernize existing transit and help agencies expand their systems to meet rider demand.”
President Biden is also calling on Congress to invest $80 billion to address Amtrak’s repair backlog; modernize the high traffic Northeast Corridor; improve existing corridors and connect new city pairs; and “enhance grant and loan programs that support passenger and freight rail safety.”
Ports and Waterways
President Biden is calling on Congress to invest $25 billion in U.S. airports, $17 billion in inland waterways, coastal ports, land ports of entry, and ferries.
Mr. Biden is proposing a $174 billion investment in the electric vehicle EV market and pledging to achieve a goal of net-zero carbon emissions of the federal vehicle fleet by 2050.
Specifically, the proposal will give consumers point of sale rebates and tax incentives to buy American-made EVs.
It will establish grant and incentive programs for state and local governments and the private sector to build a national network of 500,000 EV chargers by 2030.
The plan also will replace 50,000 diesel transit vehicles and electrify at least 20 percent of our yellow school bus fleet through a new Clean Buses for Kids Program at the Environmental Protection Agency.
The President is calling on Congress to put $400 billion toward expanding access to “quality, affordable home- or community-based care” for aging relatives and people with disabilities.
“These investments will help hundreds of thousands of Americans finally obtain the long-term services and support they need, while creating new jobs and offering caregiving workers a long-overdue raise, stronger benefits, and an opportunity to organize or join a union and collectively bargain,” the White House said.
President Biden’s plan would provide $25 billion to “help upgrade child care facilities and expanded tax credit to encourage businesses to build child care facilities at places of work.”
Employers would receive 50 percent of the first $1 million of construction costs per facility.
Mr. Biden’s plan calls for $300 billion for America’s electric grid along with a $35 billion investment in “clean energy technology” and “climate research” on such initiatives as utility-scale energy storage, carbon capture and storage, hydrogen, advanced nuclear, rare earth element separations, floating offshore wind, biofuel/bioproducts, quantum computing, and electric vehicles.
Further, the proposal would provide $213 billion to “produce, preserve, and retrofit more than two million homes and commercial buildings” in order to improve energy efficiency.
It also includes $400 billion in clean energy credits on top of the more than $2 trillion of new spending.
The proposal calls for offering $20 billion in Neighborhood Homes Investment Act (NHIA) tax credits to “rehabilitate more than 500,000 homes for low- and middle-income homebuyers.”
The proposal calls for $100 billion in “proven workforce development programs” targeted at “underserved groups and getting our students on paths to careers before they graduate from high school.”
Specifically, Mr. Biden is calling for a $40 billion investment in a new Dislocated Workers Program and sector-based training.
“Sector-based training programs will be focused on growing, high demand sectors such as clean energy, manufacturing, and caregiving, helping workers of all kinds to find good-quality jobs,” the White House said.
President Biden’s plan invests $111 billion to replace 100 percent of the nation’s lead pipes and service lines which the White House says will create many “good-paying union jobs.”
Low-Cost Loan Program
The President’s plan includes $56 billion in grants and low-cost flexible loans to states, Tribes, territories, and disadvantaged communities across the country.
Mr. Biden’s plan would dedicate $100 billion to build high-speed broadband infrastructure with the goal of reaching “100 percent coverage.”
The President’s plan calls for $100 billion to upgrade and build new public schools through $50 billion in direct grants and an additional $50 billion leveraged through bonds.
It also dedicates $12 billion for community college facilities and technology, improving energy efficiency and resilience, and “narrow funding inequities in the short-term.”
President Biden is also calling on Congress to deploy $180 billion for artificial intelligence research and development, biotechnology and computing.
The plan calls for $50 billion in funding for the National Science Foundation and $40 billion to upgrade research infrastructure in laboratories across the country.
Half of those funds will be reserved for Historically Black College and Universities (HBCUs) and other Minority Serving Institutions, including the creation of a new national lab focused on climate that will be affiliated with an HBCU, the White House said.
Further, the plan calls for $25 billion to “eliminate racial and gender inequities in research and development and science, technology, engineering, and math.”
President Biden’s plan also provides $18 billion for the modernization of Veterans Affairs hospitals and clinics.
The President’s plan would reverse much of the Trump tax cuts for businesses and increase the corporate tax rate from 21% to 28%.
It would also close a series of business tax loopholes such as the rule that allows U.S. companies to pay zero taxes on the first 10% of return when they locate investments in foreign countries.
The plan would also eliminate billions of dollars in subsidies, loopholes, and special foreign tax credits for the fossil fuel industry.
In all, the Biden Administration says the changes will raise over $2 trillion over the next 15 years.
TransportationNation.com will soon have much more on the reaction around the trucking industry.