The American Jobs Plan was made public on March 31 and calls for trillions of dollars of investment in hard and soft infrastructure across the country. At first glance, this package ticks a lot of boxes for GOPC. Increases support for public transit? Check. Calls for a ‘fix-it-first’ approach to roadway repairs? Check. Allocates more money towards brownfield redevelopment? An overarching goal for good fiscal stewardship that prioritizes resiliency? Check, check, and check!
Here is a quick, non-exhaustive overview of components of the American Jobs Plan (dollars represent spending over an 8-year period):
Transportation - $621 billion which includes funding for…
o Highways & Bridges - $115 billion would go to modernize bridges, highways, and roads under both a ‘fix-it-first’ and a ‘fix-it-right’ mindset. This would provide resources to repair 20,000 miles of highways and roads, as well as addressing maintenance needs on the 10 most economically significant larger bridges in the country, including the Brent Spence Bridge in Cincinnati.
o Public Transit & Rail - The plan includes $85 billion to modernize transit agencies, with funding intended not only to maintain existing transit infrastructure but to expand service by investing in bus, bus rapid transit and rail service. This is on top of $80 billion in funding for Amtrak to address the backlog of repair projects as well as expansion of services to underserved areas or new service areas (such as the proposed route to run from Cleveland to Cincinnati with stops in Columbus and Dayton).
o Electric Vehicle Infrastructure - $174 billion in the plan would fund various investments for electric vehicle infrastructure, including the construction and installation of 500,000 electric vehicle charging stations, and a push to electrify a significant share of transit, USPS, and public school bus fleets.
o Safety, Resiliency, and Equity - $20 billion would go towards improving road safety through various means, among them a new “Safe Streets for All” program to fund state and local Vision Zero plans. Additionally, the proposal includes $50 billion for infrastructure resiliency to “withstand climate-related disasters,” and $20 billion for a new program to reconnect neighborhoods cut off by historic investments and ensure new projects increase opportunity, advance racial equity and environmental justice, and promote affordable access.
o Even more transportation infrastructure! - the plan calls for $25 billion in funding to upgrade airports; $17 billion for inland waterways, coastal ports, land ports of entry, and ferries; and $25 billion for miscellaneous and/or ambitious projects “too large for existing funding programs.”
Water & Electric Grids - $111 billion in this plan would fund improvements to water/sewer infrastructure, including $45 billion to help localities remove lead from drinking water systems. An additional $100 billion would be invested in the national electric grid, with a particular focus to improve resiliency to climate-related disasters.
Broadband - the plan calls for $100 billion to revitalize digital infrastructure
Also, Brownfields!! - $5 billion would be invested in the remediation and redevelopment of brownfield and Superfund sites
*infrastructure spending in this plan would be in addition to spending in the surface transportation authorization that Congress will have to reauthorize this upcoming September.
We are cautiously optimistic. As advocate groups like Transportation for America have remarked, there is a lot to be excited about in the proposal, but there is still a lot left to be seen. For instance, although the American Jobs Plan is investing a considerable amount towards public transit, there was no mention of whether these funds could be used for operating assistance in addition to capital assistance. There is also room to specify and strengthen language around investments in roadway safety that shift longstanding practices prioritizing vehicle speed. While GOPC supports a ‘fix-it-first’ approach, remarks in the official document list congestion reduction as a key goal. Without additional legislative requirements, congestion reduction and modernization can easily translate to adding highway capacity.
The proposal has been met with support from groups such as Transportation for America, the American Public Transportation Association and the American Society of Civil Engineers.
On top of the items listed above, the American Jobs Plan makes requests for billions more in funding towards nontraditional infrastructure. This covers goals to increase the supply of affordable housing and address exclusionary zoning practices nationwide, improving workforce development, modernizing schools, and more.
To pay for it, the Biden Administration has proposed the “Made in America Tax Plan,” which would, among other things, raise the corporate tax rate to 28%, increase the minimum tax on U.S. multinational corporations to 21%, and eliminate loopholes that allow U.S. companies to reduce their tax burden. These tax reforms would supposedly pay for the cost of the $2.2 trillion plan over the course of 15 years. The Administration has signaled that they are open to other suggestions to funding as well.
A potential infrastructure package would be paired with existing spending appropriated through the American Rescue Plan Act (ARP), signaling a once-in-a-generation investment in communities and public infrastructure. As GOPC has been advocating, communities are going to need to engage in complex decision making to develop priorities and navigate multiple available funding streams in the short and long term. GOPC will continue to provide updates as more information on the American Jobs Plan becomes available.