We break down the plan that will likely affect the trucking and transportation industries the most
President Joe Biden revealed the first half of his $4 trillion infrastructure plan. The plan announced, called the American Jobs Plan, is estimated to cost $2.3 trillion. The second half of the infrastructure plan, called the American Families Plan, will cover “human infrastructure” and estimated to cost $1.8 trillion.
According to Biden, the American Jobs Plan is a 15-year vision that will generate 3-5 million new jobs and spend the $2 trillion over the next 8 years to improve our “crumbling infrastructure,” currently ranked 13th in the world.
The plan focuses on a balance between current transportation, roads, and household issues while preparing for a more electrified future.
While Biden wants the plan to be bipartisan, as he will bring in Republicans to the White House to discuss the details, he also wants to get this done. It is estimated that a version of this plan will potentially pass around August or September and may go through budget reconciliation to get passed.
We break down the plan that will likely affect the trucking and transportation industries the most.
Transportation = $621B
- $115B will go towards bridges, highways, roads, and $20B for road safety
- Will address about 20,000 miles of roads
- Replace the top 10 most economically significant bridges, and
- Repair around 10,000 bridges
- $85B for Public Transportation for new rail cars and transportation to connect cities within and into cities
- $80B for Amtrak
- $25B for Airports
- $17B for Ports, waterways, and ferries
Electric Vehicles = $174B
- This will include tax incentives and rebates to push buying American-made cars
- An estimated 500,000 charging stations by 2030, and
- Electrifying buses and federal vehicles
Electric Grid = $100B
- Make grid more resilient
- Includes 10-year extension and phase down of an expanded refundable investment tax credit and production tax credit for renewable energy generation and storage
- Higher labor standards
- 100% carbon pollution free power by 2035
- $16B will go towards abandoned mines and gas wells
Corporate Tax Hikes to include:
- 15% minimum tax on corporate profits (to prevent businesses like Amazon who may have zero tax on profits currently)
- Increase corporate tax rate to 28%
Workforce = $100B
- Workforce development, including apprenticeships and assistance for those who have lost their jobs
- Create hundreds of thousands of jobs across multiple industries
The bill will also include a trillion dollars to go towards manufacturing, broadband, carbon capture, clean water, households, and schools/children incentives.
The second half of Biden’s infrastructure plan will go towards social/human infrastructure to include expanding the child tax credit, school infrastructure, free community college, universal pre-kindergarten, helping the underserved communities, and more.
The American Families human infrastructure plan will use about $1 trillion in investments and $800 billion in tax credits over a decade, paid by the richest Americans who make over $400,000, aimed toward children and families. The Biden administration maintains that under the new plan, no one making $400,000 a year or less will see their taxes go up.
Biden delivered the new spending plan before a joint session of Congress just before his 100th day in office that focused on handling the COVID-19 pandemic crisis.
For a few more details of the American Jobs Plan, you can check out the White House Fact Sheet on the proposed plan.