Secretary Pete on Biden’s remark that his infrastructure plan will create 19 million jobs – it’s more like 2.7 million

Pete Buttigieg
Secretary of Transportation Pete Buttigieg.

    • President Joe Biden said April 2 that his new infrastructure package could create 19 million jobs.
    • Transportation Sec. Pete Buttigieg clarified on Sunday that it will probably directly create 2.7 million jobs.
    • The stat came from a Moody’s report projecting 16.3 million jobs from natural growth and the $1.9 trillion stimulus.

President Joe Biden said on April 2 that his new American Jobs Plan – the first of a two-part package – could lead to the creation of 19 million new jobs.

But Secretary of Transportation Pete Buttigieg clarified on Sunday that the plan would create 2.7 million jobs – not 19 million.

In a Fox News interview with Chris Wallace, Buttigieg said he and the Biden administration “should have been more precise” when saying that the infrastructure plan would create 19 million new jobs, given that the economy was already on track to add millions of new jobs from natural job growth and the $1.9 trillion stimulus package.

“It will create 2.7 million more jobs than if we don’t do it, and that’s very important because there are people on this network and others saying with a straight face that this would somehow reduce the number of jobs,” Buttigieg said.

According to Bloomberg, Biden seemed to be citing a recent Moody’s Analytics report that projects 19 million jobs could be added over the next decade if the infrastructure plan passes; however, it also estimates that 16.3 million jobs would be added over the next decade from a combination of organic job growth jobs and the already-passed American Rescue Plan.

In his remarks, Biden also said that almost 90% of the infrastructure jobs could be filled by people without a college degree.

A March analysis from Morning Consult found that, during the coronavirus pandemic, more educated Americans saw their confidence rebound and grow. The same could not be said for lower-wage, less-educated workers, who feared for their ability to hold onto a job. Higher-educated Americans felt confident enough to ask for pay increases, the analysis showed.

Biden’s remarks were tied to the prior jobs report, which saw the economy add 916,000 jobs, far outpacing economists’ expectations of 660,000.

While different unemployment measures dropped amidst the good jobs news, the country still has a long way to go before returning to pre-pandemic levels. In a blog post, Cecilia Rouse, the chair of the Council of Economic Advisers, said there were still 8.4 million fewer jobs in March 2021 than in February 2020.

Insider’s Andy Kiersz wrote that, if the March growth rate continues, employment could reach pre-pandemic levels by January 2022. Areas like movie theaters and hotels still have a long way to go, as they continue to lag in recovery.

Read the original article on Business Insider

Amtrak’s $80 billion plan to connect the US is the latest step in a rail revolution but has a glaring omission: high-speed rail

Amtrak Acela
Amtrak’s Acela service runs between Washington D.C., New York City, and Boston.

  • Amtrak has unveiled a plan to further connect the US by rail but it doesn’t include high-speed rail.
  • New routes will be added and current routes will be upgraded as Amtrak aims to repair its network.
  • Private companies and states have taken up the costly task of building high-speed rail on their own.
  • See more stories on Insider’s business page.

Americans are all-aboard for high-speed rail but Amtrak’s new rail plan is putting the brakes on bullet train dreams.

Amtrak is getting ready to spend $80 billion of the federal government’s money as part of President Joe Biden’s planned $4 trillion infrastructure bills. The “Amtrak Connects US” plan calls for greater rail connectivity across the US with the addition of new routes and improvement of old ones in a major step forward for America’s rail system.

But one phrase is notably missing from Amtrak’s proposal: high-speed rail. Amtrak’s fact sheet doesn’t mention the phrase even once.

Rather, Amtrak is using the billions to give service to rail-strapped cities like Phoenix, Las Vegas, and Nashville, Tennessee, and upgrade existing lines. Not one penny will be spent towards building a clean-slate high-speed rail line even though getting America’s high-speed rail network in line with those in Europe and Asia is a desire for many Americans.

Jim Mathews, president and CEO of the Rail Passengers Association, told Insider that Amtrak may still be decades away from true high-speed rail and is still readjusting from an era of extreme cost-cutting.

“As recently as three years ago, Amtrak senior leadership was out talking about how routes have to make a profit and long-distance routes shouldn’t exist,” Mathews said, referring to the tenure of former Delta Air Lines chief executive officer Richard Anderson that saw Amtrak’s most nostalgic offerings cut in a bid to save costs.

Read More: Here are 9 hurdles Biden’s infrastructure plan would have to overcome in Congress before it can become law

Before Amtrak can even consider a brand-new high-speed rail network, there’s still a backlog of repairs to work through on its existing lines. And unlike regional transit authorities, Amtrak’s network stretches from sea to shining sea, leaving a lot to maintain and update.

“There’s all these sort of boring infrastructure investments that you got to do,” Mathews said.

On the Northeast Corridor, where Amtrak has its only high-speed service with the Acela, Mathews said that it would cost around $50 billion just to get the line to a “state of good repair.” That’s 62.5% of Amtrak’s proposed $80 billion funding from the infrastructure bill in just repairs alone and not even laying the foundation for true high-speed rail in the Northeast.

True high-speed rail would require new infrastructure, including straight lines of track so trains can achieve their top speeds. In congested regions like the Northeast, that means spending millions if not billions just to purchase property along the line’s planned route.

“Politically, high-speed has a different ring to it and I think Amtrak is probably unwilling to step into that,” Mathews said. “From their point of view, they’re like, ‘Hey, we just want to run our trains. We want to run more trains and we want them to be on time.'”

Amtrak is already spread thin in its languishing nationwide network. Existing infrastructure across the US has fallen into disrepair and battles with freight railroads prohibit Amtrak from being competitive on existing lines.

Private companies have instead spearheaded the effort to bring high-speed rail to the US. Brightline built a high-speed line to connect West Palm Beach and Miami in Florida that will soon be connected all the way to Orlando. In Texas, the Texas Central Railroad is developing a high-speed rail line that will connect Dallas and Houston in only 90 minutes.

California has even taken up the mantle with a new high-speed rail line between Los Angeles and San Francisco. Construction is currently underway with the 800-mile line taking at least 14 years to complete at an estimated cost of at least $68 billion, according to Architect Magazine.

Amtrak is introducing new trains to the Acela line but those will only travel slightly faster than the current train sets. And pre-pandemic non-stop service between New York and Washington still took two hours and 30 minutes, despite being a comparable distance to the planned route between Dallas and Houston.

“What about grandma?”

Critics of Amtrak and its money-losing ways look too much at the big picture, according to Mathews, and not at the smaller journeys that are more in line with Amtrak’s original congressional charter. Only around 10% of riders take the full length of a long-distance service like the Empire Builder between Chicago and Seattle, for example, whereas most customers are taking the train between intermediary stops.

“The vast majority of trips take place in between,” Mathews said. And those short-distance trips between say Staples, Minnesota and Wolf Point, Montana, where convenient air service is a distant dream, is Amtrak’s bread and butter. Fares are comparatively lower than flying and trains can better accommodate passengers that face issues when flying, whether it be because they require medical devices or the nearest airport is hours away.

Keeping those smaller cities connected is also the reason why Amtrak rushed to get long-distance trains back to daily service after they were reduced to three-times-weekly service during the pandemic. Restoring them to daily service may have seemed counter-intuitive from a revenue perspective but the move ensures more Americans that rely on the rails have access to it.

When Amtrak does eventually enter the high-speed rail realm, it may be relegated to the lines that private companies haven’t already scooped up. But Mathews believes that’s alright because the rail corporation’s purview, after all, is to serve the entire country – profitable or not.

Read the original article on Business Insider

Rep. Katie Porter calls Biden’s move to split up his infrastructure package ‘a big mistake’

katie porter
Representative Katie Porter (D-CA).

  • Rep. Katie Porter of California called Biden’s move to split his infrastructure plan ‘a big mistake.’
  • She argued Democrats should merge family policies into a large infrastructure plan.
  • Last month, Biden noted that 2 millions women had left the workforce since the pandemic started.
  • See more stories on Insider’s business page.

Democratic Rep. Katie Porter of California called President Joe Biden’s decision to split up his infrastructure plan into separate jobs and family components a major error.

“This idea that there are two separate buckets, a bucket of American Jobs Plan … and this idea he has a second plan coming soon that he’s called the American Families Plan. I told the White House, ‘I think this is a big mistake,'” she said in an Axios interview published Friday.

She continued: “I think it’s mislabeling what you know as president to be true, which is that all of this is about our economy and economic recovery.”

“Strong family policy is strong jobs policy,” she said. Porter previously expressed a fear that women could be left behind in the Biden plan, CNBC reported.

Biden recently unveiled a $2.3 trillion public-works plan, the first of two plans aimed at upgrading the nation’s infrastructure. The plan contains new funds to repair deteriorating roads and bridges, eliminate lead pipes from water systems, and widen the reach of broadband networks.

The second part will be known as the American Family Plan, a package expected to contain a multi-trillion investment into childcare and education. Republicans are strongly critical of the Democratic infrastructure push, arguing that its tax hikes would slam into the economy.

Last month, Biden noted that 2 millions women had left the workforce since the pandemic started.

“A lot of that is because so much extra weight of caregiving and responsibility is falling on their shoulders,” he said at a White House event. “It causes women to miss work, cut hours, and leave their jobs and care for their children and aging loved ones.”

“How many men are staying home and doing it, and the woman’s staying in the workforce?” he asked.

Read the original article on Business Insider

2 Democratic Senators are already saying Biden’s infrastructure plan probably needs to change

Joe Manchin
Sen. Joe Manchin (D-WV).

  • Democrats in the Senate are already voicing their concerns with the infrastructure package.
  • Sen. Joe Manchin says he’s concerned about the increase to the corporate tax rate.
  • And Sen. Mark Warner has “already expressed some concerns” and wants more input.
  • See more stories on Insider’s business page.

Two Democratic senators have already voiced concerns about President Joe Biden’s $2 trillion infrastructure plan.

One of them is Sen. Joe Manchin, a moderate Democrat from West Virginia who has already proven himself to be an outsized presence in the razor-thin Democratic majority. He was also a pivotal voice against the inclusion of a $15 minimum wage in the American Rescue Plan.

Now, he’s expressed his concerns with the infrastructure package. In an interview with Talkline, a West Virginia radio show, Manchin said that, “as the bill exists today, it needs to be changed.”

Regarding Biden’s proposed increase of the corporate tax rate from 21% to 28%, Manchin indicated that he doesn’t support the 28% figure and stressed that the international average is a few percentage points lower. The rate “should have never been under 25%,” he said. “That’s the worldwide average. And that’s what basically every corporation would have told you was fair.”

When asked if he would not support a bill that raises the corporate tax rate from 21% to 28%, Manchin said: “Well, the bill basically is not going to end up that way”

Manchin also said the bill wouldn’t be passed by reconciliation “unless we vote to get on it.” When radio host Hoppy Kercheval said “they” could pass the bill by reconciliation.

“No, they can’t. Not unless we vote to get on it,” Manchin said in response. “And if I don’t vote to get on it, it’s not going anywhere.”

Meanwhile, in a briefing on Monday, Biden said he was “not at all” worried that raising that rate would drive corporations to different countries. Treasury Secretary Janet Yellen also argued in support of a global minimum tax rate today.

As Politico reports, Manchin isn’t alone: Another Democratic senator, Mark Warner of Virginia, has also expressed concerns.

“I’ve had some outreach from the White House, but it was more heads-up than input into the development of the package,” he said, according to Politico. “So I’ve already expressed some concerns.”

Getting Democrats on board with the infrastructure package will be key to its passage, as Senate Minority Mitch McConnell has already said that it won’t get any GOP votes in the Senate. That means Democrats will likely have to compromise internally amongst themselves,

Read the original article on Business Insider

Biden says his new infrastructure plan could create 19 million new jobs

joe biden amtrak
President Joe Biden.

  • President Joe Biden said Friday that his new infrastructure package could create 19 million jobs.
  • He was citing a Moody’s report that projected 16.3 million jobs from natural job growth and the $1.9 trillion stimulus.
  • He also commented on March’s jobs report, a strong sign of recovery, but still with far to go.
  • See more stories on Insider’s business page.

President Joe Biden said Friday that his new American Jobs Plan – the first of a two-part package – could lead to the creation of 19 million new jobs.

According to Bloomberg, Biden seemed to be citing a recent Moody’s Analytics report that projects 19 million jobs could be added over the next decade if the infrastructure plan passes; however, it also estimates that 16.3 million jobs would be added over the next decade from a combination of organic job growth jobs and the already-passed American Rescue Plan.

In his Friday remarks, Biden also said that almost 90% of the infrastructure jobs could be filled by people without a college degree.

A March analysis from Morning Consult found that, during the coronavirus pandemic, more educated Americans saw their confidence rebound and grow. The same could not be said for lower-wage, less-educated workers, who feared for their ability to hold onto a job. Higher-educated Americans felt confident enough to ask for pay increases, the analysis showed.

Biden’s remarks were tied to Friday’s jobs report, which saw the economy add 916,000 jobs, far outpacing economists’ expectations of 660,000.

While different unemployment measures dropped amidst the good jobs news, the country still has a long way to go before returning to pre-pandemic levels. In a blog post, Cecilia Rouse, the chair of the Council of Economic Advisers, said there were still 8.4 million fewer jobs in March 2021 than in February 2020.

Insider’s Andy Kiersz wrote that, if the March growth rate continues, employment could reach pre-pandemic levels by January 2022. Areas like movie theaters and hotels still have a long way to go, as they continue to lag in recovery.

Read the original article on Business Insider

What Biden’s $2 trillion infrastructure plan means for you

2011 02 08T120000Z_1641923879_GM1E7281QJQ01_RTRMADP_3_BIDEN.JPG
President Joe Biden speaking on an Amtrak train in February 2011.

  • President Joe Biden announced the first part of his infrastructure package on Wednesday.
  • It’s called the American Jobs Plan, and it would have wide-reaching impacts on millions of Americans.
  • Here’s how some of its provisions – like technology and transportation – could impact you.
  • See more stories on Insider’s business page.

President Joe Biden is willing to spend big.

Just the first part of his next sweeping economic package – focused on various types of infrastructure spending – has a price tag of $2 trillion. Taken together with the second part of the package, to be announced in coming weeks, it could result in around $4 trillion of spending.

In his Wednesday announcement of the American Jobs Plan, Biden emphasized the importance of rebuilding not just crumbling roads and bridges, but the middle class as a whole.

“Even before the crisis we’re now facing, those at the very top in America were doing very well, which is fine,” Biden said. “They were doing great. But everyone else was falling behind.”

He added: “We all will do better when we all do well. It’s time to build our economy from the bottom up and from the middle out, not the top down.”

The package certainly faces a long, rocky road before anything becomes law. But if all of its provisions get passed, here’s how the current plan could impact you.

Anyone who commutes – whether by train, bus, or car – could feel the impact of the infrastructure package

Broadly, transportation infrastructure would get a $621 billion investment. The biggest expenditures go towards modernizing roads, bridges, and highways; electric vehicles; public transit; and Amtrak.

“The American Jobs Plan will build new rail corridors and transit lines, easing congestion, cutting pollution, slashing commute times, and opening up investment in communities that can be connected to the cities, and cities to the outskirts, where a lot of jobs are these days,” Biden said. “It’ll reduce the bottlenecks of commerce at our ports and our airports.”

Electric-vehicle ports would see heavy investments, and Americans would have beefed-up incentives for buying clean-energy cars. They’ll be able to drive them on 20,000 modernized miles of roads and highways, or hop on a revamped Amtrak route.

“Imagine what we can do, what’s within our reach, when we modernize those highways,” Biden said. “You and your family could travel coast to coast without a single tank of gas onboard a high-speed train. “

Students of color and researchers would get more funding

Biden would allocate $180 billion to research and development. That includes yet more funding for climate causes, with $35 billion for climate research and development alone. It’s part of his efforts to reverse a long trend of declining federal money going to R&D.

“Decades ago, the United States government used to spend 2% of its GDP – its gross domestic product – on research and development,” Biden said. “Today, we spend less than 1%. I think it’s seven-tenths of 1%.”

Notably, the plan has special carve-outs targeted at students of color. Half of the $40 billion allocated for upgrading research infrastructure would go to Historically Black College and Universities (HBCUs), as well as Minority Serving Institutions (MSIs). HBCUs and MSIs would also get $10 billion – and an additional $15 billion for creating over 200 centers at them to serve as research incubators.

“The American Jobs Plan is the biggest increase in our federal non-defense research and development spending on record,” Biden said.

Workers, especially in the care industries, would get new benefits (like childcare at work)

Care workers and the people who rely on them stand to see big infusions of cash. The package would direct $400 billion towards home and community care for the elderly and disabled, expanding both access to services and benefits for workers in the space.

“For too long, caregivers – who are disproportionately women, and women of color, and immigrants – have been unseen, underpaid, and undervalued,” Biden said.

Childcare facilities would get $25 billion for upgrades; there would also be a tax credit incentivizing employers to build childcare facilities.

Biden is also calling for an end to sub-minimum wage provisions, where employers can pay disabled workers less than the federal minimum wage.

Unions were also a big topic throughout his speech, with Biden self-identifying as a “union guy.” He called for the passage of the Protecting the Right to Organize (PRO) Act.

“Unions built the middle class,” Biden said. “It’s about time they start to get a piece of the action.”

Everyone would get access to (affordable) broadband Internet

Technology overhauls worth more than $300 billion could mean more affordable and equitable internet access across the country.

Biden proposed a $100 billion investment in broadband to ensure it reaches 100% coverage across the country while promoting price transparency.

In his speech on Wednesday, Biden said that more than 35% of rural Americans lack access to high-speed Internet, and the disparity has only worsened during the pandemic. His infrastructure plan would help with that.

“When I say ‘affordable,’ I mean it,” Biden said. “Americans pay too much for Internet service. We’re going to drive down the price for families who have service now, and make it easier for families who don’t have affordable service to be able to get it now.”

Small businesses and out-of-work Americans would benefit from new programs

On top of the aid for small businesses and American manufacturers in the stimulus package, Biden wants to invest $400 billion to strengthen and protect American businesses. The infrastructure bill builds on the president’s “buy American” executive order in January and would encourage and promote domestic production of goods.

“Not a contract will go out, that I control, that will not go to a company that is an American company with American products, all the way down the line, and American workers,” Biden said.

Workers can also expect to see investments in job creation and job training efforts, and workforce protections would be strengthened, as well, including efforts to prevent workplace discrimination and supporting the right to unionize.

More affordable housing would get built

The housing sector can expect massive improvements from Biden’s $300 billion investment to revamp homes, schools, and federal buildings across the country. 500,000 homes would be built and rehabilitated for low- and middle-income homebuyers, and jobs would be created to build 1 million affordable and accessible housing options.

“We’ll build, upgrade, and weatherize affordable, energy-efficient housing and commercial buildings for millions of Americans,” Biden said.

Along with building affordable housing, Biden’s plan would update community college infrastructure and invest $28 billion to modernize Veterans Affairs clinics and hospitals and promote more sustainable federal buildings.

Read the original article on Business Insider

Mitch McConnell says the GOP won’t support the infrastructure plan, report says

McConnell Portrait
Senate Minority Leader Mitch McConnell.

  • Senate Minority Leader Mitch McConnell said the infrastructure package won’t get GOP votes, per Politico.
  • McConnell had already criticized the package, calling it a “missed opportunity.”
  • Lack of GOP support would mean that Democrats may have to use reconciliation to pass it.
  • See more stories on Insider’s business page.

Senate Minority Leader Mitch McConnell said President Joe Biden’s new infrastructure package won’t get any Republican votes in the Senate, Politico reports.

At a Kentucky event, McConnell reportedly criticized the package for the impact it could have on debt, and the accompanying proposal to hike taxes on corporations.

“That package that they’re putting together now, as much as we would like to address infrastructure, is not going to get support from our side,” McConnell said, per Politico. “Because I think the last thing the economy needs right now is a big, whopping tax increase.”

McConnell already released a statement slamming the package, calling it a “Trojan horse” for tax hikes.

“Our nation could use a serious, targeted infrastructure plan,” he said. “There would be bipartisan support for a smart proposal. Unfortunately, the latest liberal wish list the White House has decided to label ‘infrastructure’ is a major missed opportunity by this Administration.”

When reached for comment, McConnell’s team directed Insider to a series of statements from Senate Republicans as well as his prior statement.

Setting the stage for more reconciliation

If no GOP members vote for the bill – as happened with the $1.9 trillion American Rescue Plan – Democrats may have to try to pass it via party-line reconciliation yet again. That could get thorny, as moderate Democrat Sen. Joe Manchin has said he wants any infrastructure package to be bipartisan and not passed via reconciliation – yet he wanted it to include tax hikes.

Democrats are also limited in how many times they can use reconciliation to pass bills ina given fiscal year, but that may be more flexible than previously assumed.

Senate Majority Leader Chuck Schumer has been looking into a potential loophole that would trigger multiple reconciliation bills in a given year, leaving Democrats with potentially multiple opportunities to pass one. And this week’s infrastructure package will be followed by another in mid-April, and Republicans’ track record indicates they won’t support that one, either.

Read the original article on Business Insider

AOC says Biden’s infrastructure plan is way too small – she wants a $10 trillion package

alexandria ocasio-cortez aoc
Rep. Alexandria Ocasio-Cortez (D-NY).

  • An ideal infrastructure plan would spend $10 trillion, Rep. Alexandria Ocasio-Cortez said.
  • The plan Biden unveiled Wednesday is “encouraging” in scope but can be bigger, she said on MSNBC’s “Rachel Maddow Show.”
  • A larger plan could create tens of millions of jobs and vastly improve housing and health care, she said.
  • See more stories on Insider’s business page.

President Joe Biden has repeatedly said he aims to “go big” with plans to revitalize the US economy. For Rep. Alexandria Ocasio-Cortez, the administration’s $2 trillion infrastructure plan isn’t big enough.

The president unveiled the American Jobs Plan on Wednesday as a follow-up to the $1.9 trillion stimulus approved in March. The package includes spending on traditional infrastructure projects like roads and bridges as well as measures to cut down on carbon emissions and address the country’s housing shortage. The bill’s massive price tag is meant to be spread out over eight years, completely paid for over 15 years by tax hikes for corporations.

“It’s big, yes. It’s bold, yes. And we can get it done,” Biden said in a speech announcing the plan.

More progressive members of the Democratic party see room to be even more ambitious. The package’s scope is “really encouraging,” she said, but to really get to a plan that tackles America’s challenges, “we’re talking about realistically $10 trillion over 10 years.” That would cover the “ideals” sought by progressive lawmakers, Ocasio-Cortez said Wednesday on MSNBC’s The Rachel Maddow Show.

“I know that may be an eye-popping figure for some people, but we need to understand that we are in a devastating economic moment,” she said. “We have a truly crippled health-care system and a planetary crisis on our hands, and we’re the wealthiest nation in the history of the world.”

Such a plan would create tens of millions of “good union jobs,” improve the country’s health care, revamp infrastructure, shore up housing supply, and bring carbon emissions in line with standards set by the Intergovernmental Panel on Climate Change, the representative from New York added.

To be sure, the American Jobs Plan is only half of Biden’s latest spending push. The White House plans to unveil a package aimed at upgrading care facilities and education, named the American Families Plan. The proposal will likely include measures for universal pre-K, free community college, and extending child tax credits included in the March stimulus bill.

The White House is reportedly willing to spend $4 trillion across the two packages, a sum that would bring recovery spending under his term to nearly $6 trillion. Democrats so far have accepted the plan.

Democratic Sen. Joe Manchin of West Virginia – a moderate member of the party with a huge influence on Senate agenda – backed $4 trillion in infrastructure spending in January, saying such spending is necessary to bring back the nearly 10 million jobs still lost to the pandemic.

Manchin’s support marks a shift from the intraparty disagreements seen just years ago. More moderate members of the party increasingly support economic policy that centers working-class Americans, Ocasio-Cortez said.

“People really are starting to understand that these issues are no longer fringe progressive demands, but they are consensus builders,” she added.

Read the original article on Business Insider

Here’s exactly how Biden’s $2 trillion of infrastructure spending breaks down

AP President Joe Biden Amtrak Train Boarding
President Joe Biden and his wife, First Lady Jill Biden, board an Amtrak train during the 2020 presidential campaign.

  • President Joe Biden will officially announce his $2 trillion American Jobs Plan today.
  • The bill contains major investments in transportation, housing, and climate change policies.
  • Biden plans to offset the spending in the plan with a corporate tax increase.
  • See more stories on Insider’s business page.

President Joe Biden is set to announce the first part of his two-part infrastructure package this afternoon. It’s called the American Jobs Plan, and it will cost about $2 trillion.

The package is focused on job creation, traditional infrastructure spending, and investment in many other things that stand to redefine infrastructure as a political issue, such as funding for care workers, as well as incentives for childcare to be provided at American workplaces. Biden plans to couple it with a tax increase for corporations, meant to offset the bill’s spending over 15 years.

Here’s how the spending will break down.

Transportation

  • $621 billion for transportation includes:
    • $115 billion for modernizing roads, highways, and bridges
    • $20 billion for road safety
    • $85 billion for public transit
    • $80 billion for Amtrak and freight rail service
    • $174 billion for electric vehicles
    • $25 billion for airports
    • $17 billion for ports
    • $20 billion for neighborhoods historically excluded from transportation investments
    • $25 billion to fund new projects
    • $50 billion for infrastructure resilience, with a special emphasis on more vulnerable areas

Water

  • $111 billion for water infrastructure includes:
    • $45 billion towards fully eliminating lead pipes through various programs
    • $56 billion in loans and grants to help modernize water systems around the country
    • $10 billion for monitoring and fixing substances in drinking water

Broadband and power

  • $100 billion for broadband
    • This would build out infrastructure for 100% coverage and would specifically allocate funds for tribal lands
    • It would also seek to reduce broadband pricing
  • $100 billion for power infrastructure includes:
    • $16 billion towards plugging old wells and cleaning up abandoned mines
    • $5 billion towards revamping former industrial and energy sites
    • $10 billion for the creation of a Civilian Climate Corps

Housing and education

  • $213 billion for creating and retrofitting over 2 million housing units, with a $40 billion investment in public housing infrastructure
  • $100 billion for upgrading and building public schools
  • $12 billion for community college infrastructure
  • $25 billion for upgrading childcare facilities and making it more widely accessible
    • This is accompanied by a tax credit to incentivize building childcare at Americans’ places of work
  • $18 billion to modernize Veterans Affairs hospitals, as well as $10 billion for federal buildings
  • $400 billion towards home/community care for the elderly and disabled
    • This would expand access, and seek to improve wages, benefits, and unionization for workers in the industry.

Research and development

  • $180 billion towards R&D includes:
    • $50 billion for the National Science Foundation
    • $30 billion for innovation and job creation R&D
    • $40 billion in upgrading research infrastructure, with half allocated to Historically Black College and Universities (HBCUs) as well as “Minority Serving Institutions” (MSIs)
    • $10 billion for those HBCUs and MSIs, as well as $15 billion to create over 200 centers at them to serve as research incubators
    • $35 billion in climate research and development

Manufacturing and labor

  • $300 billion for American manufacturing and small business
    • $50 billion for a new office for a new office focused on domestic industry
    • $50 billion for research and manufacturing for semiconductors
    • $30 billion to create new jobs and fend off losses during future pandemics
    • $46 billion for federal buying, with an emphasis on various clean technologies
    • $20 billion for regional innovation hubs
    • $14 billion towards increasing competitiveness through technological advances
    • $52 billion to domestic manufacturers
    • $31 billion for programs providing credit, R&D funding, and venture capital to small businesses
    • $5 billion to create a new “Rural Partnership Program,” aimed at supporting local rural efforts
  • $100 billion for workforce development includes:
    • $40 billion towards career services and training for workers who have lost jobs
    • $12 billion in targeted funding towards “workers facing some of the greatest challenges,” prioritizing underserved and hard hit communities, with $5 billion towards “evidence-based community violence prevention programs”
    • $48 billion towards worker protection and development infrastructure, including an expansion of apprenticeships, with a particular emphasis on women and people of color
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What to expect in Biden’s $2 trillion infrastructure package

Biden speech
President Joe Biden.

  • The first part of President Joe Biden’s infrastructure bill is set to be announced this afternoon.
  • It will contain substantial investments in transportation, broadband, care workers, and research.
  • The bill will cost around $2 trillion, and is set to be offset with tax hikes for corporations.
  • See more stories on Insider’s business page.

President Joe Biden is set to announce his first infrastructure bill this afternoon, with a price tag of around $2 trillion, principally spent out over eight years. The bill will include major investments in everything from broadband to elder care workers – to be paid for with tax hikes on corporations.

Here’s what to expect.

Transportation

The first area to see a historic investment would be transportation, according to an administration official. That includes modernizing 20,000 miles of roads and funding for important bridges. Significantly, federal funding for public transit would double.

More climate-friendly forms of transit would also see a boost, with funding for electric-vehicle-charging stations and affordability measures for electric vehicles. Bus fleets would also undergo an electric overhaul.

Broadband and water

The plan would bring universal – and affordable – broadband in the next decade, a need that the virtual work- and school-life required by the pandemic threw into stark relief.

It will also focus on the living conditions of Americans. The bill seeks to ensure that every American has access to clean water, which would be accomplished through the upgrading and replacing of pipes. It would also revamp electric infrastructure in a move towards a carbon-free future.

Housing would see a significant investment, with 2 million residences set to be built or renovated. The bill also allocates money to repairs for schools, federal buildings, childcare facilities, and veteran hospitals.

Care for the elderly and disabled

The plan would invest in one part of the care economy by creating more jobs caring for the elderly and disabled, and boosting pay for those workers. That workforce is disproportionately female, with women of color highly represented, and sees lower wages in general.

Innovation and R&D

The package will include incentives for domestic manufacturing, as well as clean-energy technology and other key supply-chain areas. That would be coupled with investments in the workforce and training.

Corporate tax increase

Biden’s proposed corporate tax reform is meant to offset the cost of this package over 15 years, an administration official said. Job creation would be incentivized, and the corporate tax rate would be set to 28%. The administration will also seek to establish a global minimum tax rate of 21% for multinational corporations.

What comes next

It’s unclear if this package will have to be passed through party-line reconciliation, as Biden’s $1.9 trillion stimulus was in early March. Moderate Democrat Sen. Joe Manchin has signaled he would like a bipartisan infrastructure plan, but Republicans have indicated that they won’t get onboard with any tax cuts.

This is the first part of a two-pronged infrastructure package. The second part, set to be announced in mid-April, will focus on education, childcare, and healthcare.

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