Biden s Bipartisan Infrastructure Deal
30 June 2021
30 June 2021
The Compromise Plan is more a statement of bipartisan collaboration than a concrete policy agenda. Its authors have yet to decide on many significant points, including funding sources. It will likely be overhauled as its winds its way through the Senate and House, as legislators of both parties who did not work on the Compromise Plan demand further compromise. Biden himself has said that he will not sign it unless it is passed alongside a human infrastructure bill. However, none of these obstacles are expected to prevent the eventual passage of a bill, because both parties are invested in passing infrastructure spending.
Despite the upcoming challenges, the Compromise Plan is a win for the private sector. Initially, it seemed that Biden's infrastructure plan would proceed with zero Republican involvement using the reconciliation process. Democrats had planned to fund the bill with a mix of loans and a raise in the corporate tax rate. Now that Republicans are cooperating, it is expected that they will want to minimize any raise in taxes and include alternative financing.
The Compromise Plan mentions several potential private sector sources, including public-private partnerships, private activity bonds, direct pay bonds, 5G spectrum auction proceeds, and asset recycling. Like everything else in the proposal, it is subject to change, but it is likely that Republicans will demand private sector funding in the final bill. Shelley Moore Capito, a Republican senator who led the compromise talks, has said that she has a strong preference for private sector investment over measures like a raised gas tax.
The following is intended to be a non-exhaustive list of some of the key proposals contained in the Compromise Plan:
|BRIDGES, ROADS AND HIGHWAYS
Roads, bridges, and major projects - $109bn
Improve road safety - $11bn
|PUBLIC TRANSIT AND FREIGHT
Modernization of existing public transit and investment to meet rider demand, and funding in order to:
Passenger/freight railways - $66bn
Public transit - $49bn
|AIRPORTS, PORTS AND WATERWAYS
Airport proposal includes funding for:
Airports - $25bn
Waterways and ports - $16bn
|ELECTRIC VEHICLES AND TECHNOLOGY
Tax incentives for both automakers and consumers
Grant and incentive programs for state and local governments and the private sector to build a national network of 500,000 EV chargers.
Electrification of school and transit buses.
Electric buses / transit - $7.5bn
EV Infrastructure - $7.5bn
|BROADBAND AND DIGITAL INFRASTRUCTURE
Affordable, "future proof", high-speed broadband infrastructure with 100 percent coverage, including in unserved and underserved areas.
Broadband Infrastructure- $65bn
|BUILDINGS AND UTILITIES
Build a more resilient electric transmission system.
Spur jobs modernizing power generation and delivering clean electricity, moving toward 100 percent carbon pollution-free power by 2035.
Replace all lead pipes.
Power infrastructure including grid authority - $73bn
Water infrastructure - $55bn
Other infrastructure financing - $20bn
Western water storage - $5bn
Reconnecting communities - $1bn
Increase resilience in essential services, including the electric grid, food systems, urban infrastructure, community health and hospitals, and roads, rail and other transportation assets.
Remediate and redevelop critical physical, social and civic infrastructure.
Resilience - $47bn
Environmental Remediation - $21bn
Betty Cerini, Partner and Co-Head of Projects, Americas – Admitted only in New York
Anna Hermelin, Office Managing Partner (Los Angeles) and Co-Head of Projects, Americas – Admitted only in California and England & Wales
Andrew Smith, Partner – Admitted only in New York and England & Wales
Michael Lyndon-James, Senior Associate – Admitted only in New York and Western Australia
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