A Breakdown of Government Infrastructure Plan Spending
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Over the past few months, President Joe Biden has attempted to get an ambitious infrastructure plan passed through Congress. Improved charging infrastructure is especially important as America shifts to electric vehicles (EVs).
10 bipartisan senators introduced an infrastructure plan that only included $579 billion in new spending, as reported by Car and Driver. This is less than Biden’s $2 trillion plan, but the new plan means the group has reached a deal on the framework of the bill. The U.S. needs better infrastructure to accelerate the EV future
What’s covered in the infrastructure plan?
The plan will almost certainly change between now and when a version of it becomes law. But at the moment, it includes a trillion dollars worth of infrastructure spending over the next five years.
Approximately $312 billion of the $579 billion in new infrastructure spending is focused on transportation projects. The second part includes around $266 billion for things like water systems, broadband internet, and power grids.
According to Car and Driver, here are some of the potential funding amounts in the bipartisan deal:
- $109 billion for roads and bridges
- $66 billion for railroad improvements
- $49 billion for mass transit
- $15 billion on EV infrastructure and electric buses
This new spending will provide a short boost to the economy, and is also necessary for long-term economic growth. The Council on Foreign Relations has reported that the United States is lagging in infrastructure when compared to its peers.
What’s not included in the plan?
The new framework for the bill doesn’t include Biden’s “human infrastructure” priorities such as childcare, education, and eldercare. The proposed $100 billion for EV subsidies was also removed.
Other options are being discussed to encourage EV adoption. These proposals suggest either raising the tax credit for purchasing a new EV from $7,500 to $12,500 or including used EVs for tax credits. The plan also lacks any funding for the development and regulation of self-driving cars.
Will the bill be passed?
Republican Senate leader Mitch McConnell is concerned that the emerging bipartisan bill will add to the national debt. McConnell said that there would be a “hell of a fight” if the bill is moved forward as is, according to Reuters.
The infrastructure deal has the support of the “Problem Solvers Caucus,” a bipartisan group of 56 representatives with an equal amount of Democrats and Republicans. The deal will likely evolve before it becomes law, and party leaders will need to maintain the support of their members for this to happen.
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