Infrastructure Bill Finally Passes – What’s in it?

What’s in the $1.2 trillion bill?

The nearly 3,000 page bill contains $550 billion in new spending.  The total $1.2 trillion figure includes annual funding allocated to highways and various infrastructure projects.  

Late-night Friday, November 5th, the House finally passed the so-called bi-partisan infrastructure bill.  The final tally, 228-to-206, showed however that the bill could hardly be labeled bi-partisan.  

Back in August, the Senate passed the same infrastructure bill by a 69-to-30 vote – as 19 Republicans joined all Democrats.  At that time, the news media properly recognized the Senate’s vote as bi-partisan.   Now, two months later, only 13 House Republicans voted for the bill and all-but-6 Democrats.    

Nevertheless, the vote hands President Biden a much-needed victory.  But much like Biden’s 1.9 trillion coronavirus relief package passed in March, which did not attract a single House Republican vote, passage ultimately turned on an agreement between Democrats –  moderates and progressive – not on the accord between Democrats and Republicans.   

What’s in the $1.2 trillion bill?

The nearly 3,000-page bill contains $550 billion in new spending.  The total $1.2 trillion figure includes annual funding allocated to highways and various infrastructure projects.  

The new spending contains:

·       $110 billion for roads and bridges - $40 billion dedicated to bridge repair and replacement.

·       $66 billion for railroads – upgrades and maintenance of passenger rail and freight systems.

·       $65 billion for the power grid – modernize power lines and money to prevent hacking.

·       $65 billion for broadband – expands broadband in rural areas and in low-income communities.

·       $55 billion for water infrastructure – lead pipe replacement and chemical cleanups.

·       $47 billion for cybersecurity and climate change – addresses extreme weather events.

·       $39 billion for public transit – new bus routes and accessibility for seniors and disabled people.  

·       $25 billion for airports – expansion/upgrades including runways, terminals, and air traffic control towers.

·       $21 billion for the environment – clean up Superfund sites, abandoned mines, and old oil/gas wells.

·       $17 billion for ports – half to Army Corps of Engineers, additional funds to Coast Guard, ferry terminals, and truck emission reduction.  

·       $11 billion for safety – highway safety, pedestrian as well.

·       $8 billion for western water systems – investments in water storage and treatment.

·       $7.5 billion for electric vehicle charging stations across the nation.  

·       $7.5 billion for electric school buses – emphasis on fleet replacement in low-income and rural communities.  

How Congress pays for it

·       Repurposing of unused covid-19 relief funds.

·        Rescinding unobligated appropriations from several loan packages passed for covid relief.

·        Money from states that terminated pandemic unemployment benefits early.

·        New Superfund fees.

·       Money from a change in tax reporting requirements for cryptocurrencies.

·       Delaying changes in how drugs are paid for in Medicare and Medicaid until 2026.

·       Economic growth stimulated by the new infrastructure projects. 

Bottom Line

After passage, Biden boldly declared, 

“Generations from now, people will look back and know this is when America won the economic competition for the 21st Century.”   

Unlikely.  But we can excuse Biden’s inflated vision.  After all, the infrastructure bill was a big victory for his administration.    Yes, the bill does represent a large and historic investment in America’s infrastructure.  

However, it falls far short of Biden’s original proposal, which promised to reduce the climate impacts of transportation.  Likewise, it did not reach liberal Democrats’ lofty expectations.  Rather, in the end, this bill failed to achieve the levels of bi-partisan support typically observed in past infrastructure bills.  For example, Obama’s Fixing America’s Surface Transportation Act in 2015 attracted 178 House Republicans while Clinton’s Transportation Equity Act for the 21stCentury garnered 143.  

Biden’s infrastructure bill may well be the start of something important.  Yet the razor-thin margins in the House and Senate do not permit the type of groundbreaking legislation that future generations will recognize as significant.        

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