Biden Administration Rolls Out American Jobs Plan Infrastructure Package

April 5, 2021

The proposed $2 trillion infrastructure and jobs package seeks to address aging roads and bridges, overhaul water infrastructure, and more.

President Joe Biden announced last week a far-reaching $2 trillion infrastructure and jobs package that the administration hopes will be next on the docket for Congress. It’s the first of a two-part proposal to rebuild the nation’s economy as it continues to recover from the coronavirus pandemic.

The package seeks to build on the relief provided by the recently passed American Rescue Plan Act by providing resources to create new jobs and rebuild the country’s infrastructure. The proposal is paid for in part by increasing the corporate tax rate and close certain tax loopholes.

What’s included in the proposal

While a large portion of the resources called for in the proposal would address transportation infrastructure to invest in roadways, railways, and bridges, the sweeping proposal goes far beyond what is contained in traditional infrastructure packages. The following details are included in the American Jobs Plan infrastructure package:

  • $621 billion in transportation infrastructure funding, which includes:
    • $174 billion for electric vehicle stations, funding for electric bus fleets, and tax incentives for switching to electric vehicles.
    • $115 billion to fix roads and bridges that are most in need of repair.
    • $85 billion to modernize public transit.
    • $50 billion for infrastructure resiliency to better prepare infrastructure for climate-related issues and $20 billion to improve road safety.
    • $25 billion to provide upgrades for airports.
    • $20 billion to help connect neighborhoods historically cut off by federal investments.
    • $17 billion to provide upgrades for inland waterways, coastal ports, land ports of entry, and ferries.
  • $650 billion to address school buildings, underground water infrastructure, and broadband expansion, which includes:
    • $213 billion for the preservation of both commercial buildings and affordable homes, including the construction and rehabilitation of 500,000 affordable homes.
    • $11 billion to address water infrastructure, including the replacement of all lead pipes and service lines.
    • $100 billion to modernize public schools,
    • $100 billion to make broadband access universal throughout the country and reduce the cost of access.
    • $40 billion for public housing improvements.
    • $18 million for Veterans Affairs hospitals.
    • $12 billion for community college infrastructure.
    • $16 million to address unused oil and gas wells and clean up abandoned mines.
  • $400 billion to assist with access to community-based and home care for elderly and disabled.
  • $300 billion for manufacturing investment to bolster domestic production of technology products and other goods, which includes:
    • $100 billion for workforce training.
    • $180 billion for research and development on clean energy and climate change research.

Access a more detailed overview of all provisions in the American Jobs Plan infrastructure package

What’s next?

The Biden administration is likely to try to attract bipartisan support for the package. However, it is also possible the package could be passed via the budget reconciliation process which would require just 51 votes rather than 60.

It is important to remember that unless stated otherwise by the Senate parliamentarian, the Senate likely can only use the budget reconciliation process once more. Expect infrastructure to dominate the conversations in Washington during the coming months.

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