SENATE VOTES TO OPEN DEBATE ON
BIPARTISAN INFRASTRUCTURE BILL
The US Senate last night moved to open debate on a nearly
$1 trillion hard infrastructure package. The affirmative vote included Senate Minority Leader Mitch McConnell and 16 other Republicans, and represents a major breakthrough after weeks of negotiations between the Biden Administration and senators in both parties. Last night's action clears the path for a final vote on the package in the coming days.
What's Included:
The funding numbers below are across a 5-year baseline. Fine details are still being worked out, but the Senate-passed package is expected to include the Surface Transportation Reauthorization Act (STRA) of 2021, which calls for $303.5 billion highway investment, and the 2021 Drinking Water and Wastewater Infrastructure Act which calls for $35 billion in new investment in water infrastructure.
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$110 billion in new funds for roads, bridges and major projects (which represents an additional $55B to the STRA 5-year reauthorization, and is about $550B over current baseline) including:
- $36.7B bridge grant funding for both competitive grants and formula
- $7.5B additional for RAISE grant funding (formerly known as BUILD or TIGER)
- $5B new program for multi-modal, multi-jurisdictional projects of national and regional significance
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$73 billion for clean energy;
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$66 billion for passenger and freight rail to address deferred maintenance, enhance existing corridors, and build new lines in high-potential locations;
- Includes $24B as federal-state partnership set-asides for Northeast Corridor modernization and $6B in grants for the Northeast Corridor
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$65 billion for broadband;
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$55 billion for water infrastructure, including
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$23.4B for the “Drinking Water and Wastewater Infrastructure Act”
- Funding for lead remediation and to address PFAS
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$50 billion to help states and cities prepare for droughts, wildfires, and flooding;
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$39 billion new investment for public transit (on top of 5-year reauthorization);
- $8B Capital Investment Grants (Gateway Project funding source that includes Core Capacity, New Starts and Small Starts programs)
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$25 billion for airports;
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$21 billion for environmental remediation
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$17 billion for ports and waterways;
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$11 billion for transportation safety programs;
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$3.5 billion for Superfund Remediation
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$26 million for restoration projects in the Delaware River Basin
- Requires US Department of Energy to study the feasibility of expanding the nation's nuclear power
- Improves permitting by codifying the One Federal Decision for highway projects, and adopts the Federal Permitting Reform and Jobs Act which was set to sunset
How It's Funded:
Republican negotiators were able to secure fundamental changes to funding sources for the bill. Originally, the Administration proposed increased revenues from tightening tax loopholes as a major payfor. Instead, both parties agreed to new sources including:
- Repurposes $205 billion from previous pandemic aid legislation;
- Recoups $53 billion from states returning expanded unemployment benefit funding;
- Saves $49 billion by delaying a Medicare Part D rebate rule enacted under President Trump; and
- Raises nearly $30 billion by applying tax information reporting requirements to cryptocurrency
- $89 billion from future spectrum and c-band auctions
- $13 billion from reinstating Superfund fees
- $6 billion in sales from the Strategic Petroleum Reserve
What's Next:
The deal still faces several obstacles to becoming law. Legislative text is still being written and the measure will need to survive debate, amendments, and a final vote.
During negotiations, President Biden and Democratic leaders were forced to agree to concessions, including less new money for public transit, clean energy, electric vehicle charging stations, and the elimination of the $20 billion national infrastructure bank. These reductions have rankled members in both chambers, including Speaker Nancy Pelosi and Representative DeFazio (D-OR), Chair of the Transportation and Infrastructure Committee.
However, the procedural vote is still a major step forward in advancing a mega-infrastructure bill that has been teased at for several years. If enacted, these numbers are transformative and would keep our industry working for years to come.
Despite the challenges, we remain optimistic that Congress will pass an infrastructure package in some form this year and are actively engaged with our federal delegation to protect the industry's priorities. We'll keep you updated as details emerge and the process unfolds.
