Bidens Infrastructure Bill
10 November 2021
10 November 2021
Just before midnight on November 5, the House of Representatives approved a $1.2 trillion infrastructure bill. President Biden has announced that he will sign the bill, officially titled the Bipartisan Infrastructure Framework (BIF), into law after Congress returns from recess on November 15.
As the name suggests, the House passed the bill after 13 Republicans joined 205 Democrats to pass the biggest infrastructure investment in decades. The finalized bill closes the loop on a process that began when the President released his initial proposal in April.
The BIF is a close cousin of that first plan. It includes funding for almost all of the same infrastructure categories, and its price tag is not far off from the $621 billion in new spending originally proposed. The major difference is that the original package also included an additional $1 trillion of social spending that disappeared after the bill was negotiated in the Senate. That proposal, which includes funding for housing, healthcare, and education, was moved to a separate bill, and will be voted on later this month.
We are still making our way through the 2,702-page bill, but it is evident that the BIF presents an array of opportunities for private sector involvement, including the opportunity for public-private partnerships to magnify the funding sources and receive the benefit of an even further stabilized asset class.
In particular, we note that:
The following is intended to be a non-exhaustive list of some of the key aspects of the BIF:
|BRIDGES, ROADS AND HIGHWAYS|
Fix the most economically significant large bridges in need of reconstruction, along with the repair of 10,000 smaller bridges.
Modernize 20,000 miles of highways and roads.
Roads, bridges, and major projects - $110bn
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 - $39bn
|AIRPORTS, PORTS AND WATERWAYS|
Airports - $25bn
Waterways and ports - $17bn
|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.
Power infrastructure including grid authority - $73bn
Water infrastructure - $55bn
Other infrastructure financing - $20bn
Western water storage - $3bn
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