$550 Billion Infrastructure Deal
The President and his team have debated over finding resolutions for the country’s issues on infrastructure and came to a decision at the end of the summer. This decision has an enormous impact on the country’s economic development and overall prosperity.
How Did Lawmakers Come To An Agreement Over Infrastructure?
What was once theorized to include an infrastructure deal consisting of $550 Billion dollars jumped to over a trillion-dollar deal a few months later. This summer, the Senate voted to move ahead with a plan along with support from the majority of the lawmakers.
Senators GOP leader Mitch McConnell, Senator Roy Blunt of Missouri, and Senator Shelley Moore Capito of West Virginia were early supporters of the President’s infrastructure bill. They were some of the first lawmakers who voted to move ahead with the plan. The hope of this new infrastructure plan is to create higher-paying jobs without increasing taxes. The initial projected plan of $550 billion dollars was allocated as follows:
- $110 billion dedicated for building roads, bridges and major projects
- $73 billion for updating electric power grids.
- $66 billion for enhancing the rail and Amtrak systems.
- $65 billion set aside for expanding broadband technology.
- Investing $55 billion for clean drinking water for all.
- An additional $39 billion for the transit department
- $17 billion going towards maritime ports
- $25 billion for airports
- $7.5 billion for increasing the presence of electric vehicle chargers
But several Republicans like Rick Scott of Florida and Ted Cruz of Texas were reported earlier this summer not in support of the President’s plan. They criticized the plan and stated that “Congress can’t keep spending trillions of dollars we don’t have. The infrastructure package announced today continues the trend in Congress of insane deficit spending.
What Does The New Infrastructure Deal Entail?
Despite months of negotiations and deficit concerns, the bipartisan bill was passed on August 10, 2021, with the majority in support at 69 in support and 30 members against. The plan is to divide $550 billion dollars over the next 5 years into transit operations and other areas of infrastructure. The bill includes the following plans to allocate the spending:
- Roads, bridges, major projects: $110 billion
- Passenger and freight rail: $66 billion
- Public transit: $39 billion
- Airports: $25 billion
- Port infrastructure: $17 billion
- Transportation safety programs: $11 billion
- Electric vehicles: $7.5 billion
- Zero and low-emission buses and ferries: $7.5 billion
- Revitalization of communities: $1 billion
- Broadband: $65 billion
- Power infrastructure: $73 billion
- Clean drinking water: $55 billion
- Resilience and Western water storage: $50 billion
- Removal of pollution from water and soil: $21 billion
Where Will This Money Come From?
President Biden’s intent is that the infrastructure plan will help America compete within the global economy throughout the 21st century. Funding for the new plan would come from 5 various sources:
- Repurposed COVID-19 Relief Funds
- Sales from the Strategic Petroleum reserve
- Increased customs user fees
- Government-sponsored enterprise fees
- Increased reporting requirements on cryptocurrency transactions
Funding sources which reference things called “gimmicks.” These gimmicks are anticipatory earnings from future economic revenue growth. This also includes cuts to Medicare spending, deferred pensions, and tax increases.
How Does This New Plan Impact You and How Trifecta Can Help?
Passenger and freight rail will receive $66 billion over the next 5 years. This will help with Amtrak route expansion, repairs, and railway improvements. Though the rail freight sector does not receive federal funding because they are publicly traded companies, they still will benefit from his funding. Freight shipping companies will gain indirect benefits from the funding through enhanced freight electrification, rail safety, and efficiency. The plans will also help indirectly alleviate maritime port congestion and the capacity crisis that is slowing the intermodal railroad system.
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Contact Trifecta Transport Today
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