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Infrastructure Packages: Here’s What’s In It



Funding for bridges and roads

Law calling for investment of 110 billion dollars for bridges and major infrastructure projects. That number is significantly less than the $159 billion that Biden originally requested in the American Jobs Plan.
Including $40 billion for bridge repair, replacement and restoration, according to the text. The White House said it would be the largest single dedicated bridge investment since construction of the interstate highway system began in the 1950s.

According to the White House, the deal also includes $16 billion for large projects that are too large or complicated for traditional funding programs.

According to the White House, about 20%, or 173,000 miles, of the nation’s highways and major roads are in poor condition, as are 45,000 bridges.

Investments will focus on Mitigating climate change, resilience, equity and safety for all users, including cyclists and pedestrians.

Also in the $11 billion package for traffic safety, it includes a program to help states and localities reduce accidents and deaths, especially among cyclists and pedestrians, according to the White House. It will be directly funds safety efforts involving highways, trucks, pipelines, and hazardous materials.

And it contains 1 billion dollars to Reconnect the community — mostly disproportionately black neighborhoods — divided by highways and other infrastructure, according to the White House. It will fund the planning, design, demolition and reconstruction of a network of streets, parks or other infrastructure.

Transportation and rail money

The package provides $39 billion to modernize public transit, according to the text. That’s less than the $85 billion Biden originally wanted to invest in modernizing transportation systems and helping them expand to meet riders’ needs.

The funds will repair and upgrade existing infrastructure, make terminals accessible to all users, bring transit service to new communities and modernize bus and rail fleets , including replacing thousands of vehicles with zero-emissions models, according to the White House.

The agreement will also invested $66 billion in passenger and freight rail, as of writing. According to the White House, the money will eliminate Amtrak’s maintenance backlog, modernize the Northeast Corridor, and bring rail service to areas outside the Northeast and mid-Atlantic regions. Included in the package is a $12 billion partner grant for intercity rail service, including high-speed rail.

The funding amount is less than the $80 billion Biden originally wanted to send to Amtrak, he has relied on for decades to go home to Delaware from Washington, DC.

However, it would be the largest federal investment in history and passenger rail since Amtrak’s founding 50 years ago, according to the White House.

Broadband upgrade

Act provides a $65 billion investment in improve the nation’s broadband infrastructure, according to the text. Initially, Biden wanted to invest $100 billion in broadband.

It also aims to help lower the price households pay for internet service by requiring recipients of federal funding to provide a cost-effective plan, by creating price transparency and by promoting competition in areas where existing providers do not provide adequate service. It will be also created a permanent federal program to help more low-income households access the internet, according to the White House fact sheet.

Upgrade airports, ports and waterways

The agreement will invest $17 billion in port infrastructure and $25 billion in airports to address repair and maintenance backlogs, reduce congestion and emissions near ports and airports, and promote electrification and other low-carbon technologies, according to the White House.

It is similar to the funding in Biden’s original proposal.

Tram

The legislation will provide $7.5 billion for zero-emissions and low-emission buses and ferries, aimed at delivering thousands of electric buses to schools around the country, according to the White House.

Another $7.5 billion will go towards building a nationwide plug-in network tram charger, according to the text.

Improve electricity and water systems

According to the White House, a $65 billion investment package to rebuild the power grid. The White House said it called for building thousands of miles of new power lines and expanding renewable energy.

It provides $55 billion to upgrade water infrastructure, as of writing. It will replace lines and pipes so communities can access clean drinking water, the White House said.

The White House says another $50 billion will make the system more resilient – protecting it from droughts, floods and cyberattacks.

Fix the environment

The package provides $21 billion to clean up Superfund and brownfield sites, recover abandoned mine land and cap orphan gas wells, according to the White House.

How will Congress pay for it

The law includes a multitude of ways to pay for the proposal – none of which will raise taxes.

But while lawmakers claimed the pay package would pay for itself, CBO scores suggest it would instead add billions of dollars to the deficit over 10 years, and many of the pay provisions would not collect. get as much money as Democrats say.

The bottom line is that the law will directly add about $350 billion to the deficit, when taking into account $90 billion in spending on the new contracting agency, said Marc Goldwein, senior vice president at the Federal Budget Committee. responsible, a nonpartisan group said. Federal spending tracking.

According to the 57-page text and summary of the law, lawmakers have largely relied on repurposing unused Covid-19 relief funds to pay for the legislation. The CBO found these measures would save about $22 billion, instead of the roughly $263 billion lawmakers claimed, Goldwein said.

The document lists savings from the cancellation of unwarranted allocations to the Economic Disaster Loan program for small businesses and nonprofit groups, Paycheck Protection Program, NS Education Stabilization Fund and relief for airline employees, among others.
Another entry in the text is $53 billion, partly due to the states that opted in Early end of pandemic unemployment benefits with hope push the unemployed back to work. About 24 states have stopped at least one of the federal unemployment program before they officially end in early September. In addition, the CBO lowered its forecast for the unemployment rate due to an improving economy.
The agency also found that the Federal Communications Commission of spectrum auction would generate far less than the $87 billion lawmakers originally claimed.
The CBO also says that the law will raise about $50 billion by imposing new and changed Superfund fees. Cryptocurrency tax reporting requirements, among other measures.
More savings will come from delaying one Controversial Trump administration rule that would completely change the way drugs are priced and paid for in Medicare and Medicaid, as early as 2026. The measure would effectively prohibit drug manufacturers from offering discounts to benefit managers. pharmaceuticals and insurance companies. Instead, pharmaceutical companies would be incentivized to pass on discounts directly to patients over the counter. It is now expected to go into effect in 2023. The summary lists the savings as $49 billion and the CBO report as close to $51 billion.

Additionally, the infrastructure package relies on generating $56 billion in economic growth through a 33% return on investment in long-term projects, according to the summary.

Biden has said that the law will not raise taxes on people earning less than $400,000 a year and does not include increases in gas taxes or fees on electric vehicles. He initially called for a tax increase on corporations to fund infrastructure investments – but that proposal was not included in the final package after strong opposition from Republicans. .

What’s missing

The package scraps Biden’s proposal to spend $400 billion to strengthen care for the elderly and Americans with disabilities — the second-biggest measure on the America’s Jobs Plan.

His proposal would expand access to long-term care services under Medicaid, eliminating waiting lists for hundreds of thousands of people. It will provide more opportunities for people to get care at home through community-based services or from family members.

It will also improve the wages of home health workers, who currently earn about $12 an hour, and will put in place an infrastructure to give care workers the opportunity to join a union.

Also left on the sidelines: $100 billion for workforce development, which will help disabled workers, support underserved groups, and put students on a career path before they graduated from high school.

The act also removes the $18 billion Biden proposed to modernize Veterans’ Hospitals, which are on average 47 years older than private sector hospitals.

There is also a variety of corporate tax increase that Biden wants to use to pay for America’s Jobs Plan.
Biden’s original proposal called for raising the corporate income tax rate to 28%, up from the 21% introduced by the 2017 Republican tax cut, as well as raising the minimum tax rate for small businesses. U.S. corporations by 21% and on a country-by-country basis to prevent companies from hiding profits in international tax haven.

It would also tax a minimum of 15% on income that the largest corporations report to investors, known as book income, as opposed to income reported to the Internal Revenue Service and would make It is difficult for US companies to acquire or merge with a foreign business to avoid paying US taxes by claiming to be a foreign company.

There are a few terms of corporate tax increase which Democratic legislators are seeking to include in their own legislation for the purpose expanding the nation’s social safety net.

CNN’s Manu Raju contributed to this report.

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