As we have discussed in our previous articles, there are two bills moving at the same time that are separate from each other, but still connected under Biden’s infrastructure hopes.
First, there is the bipartisan “physical” infrastructure plan that is estimated to cost $1 trillion, down from the $2.3 trillion proposal.
The infrastructure bill is focused primarily on what senators consider “core” infrastructure, including repairing roads, bridges, waterways and airports, as well as expanding access to things like broadband and electric vehicle charging stations.
Senate Majority Leader Chuck Schumer will force a vote next Wednesday on advancing the bipartisan infrastructure package before the August recess. It is not clear whether 10 Republicans will vote to advance the bipartisan bill.
Second, there is the recent partisan budget agreement spending deal that is expected to be around $3.5 trillion that will include much of the $1.8 trillion “human” infrastructure American Families Plan.
The American Families 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.
Senate Democrats cannot lose a single vote on the reconciliation bill in a Senate split 50-50 by party.
How will the infrastructure plan affect the trucking industry?
While the bipartisan plan has not been fully written out yet, Biden’s original proposal can give us a clue.
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
A recent study on Biden’s infrastructure plan found that commercial truck driver jobs are forecast to make some of the biggest gains from the 15 million infrastructure jobs created or saved over 10 years.
“Transportation and materials moving” make up 60% of the infrastructure related occupations either created or saved by Biden’s plan while jobs for commercial drivers of heavy trucks and light truck/delivery drivers would account for 20% of the 15 million jobs estimated in the report.
The report also forecasts that the infrastructure jobs created or saved would be spread across the country with roughly 20% of the infrastructure jobs would be in Midwestern states and 22% going to states in the Southeast.
Change happens. How can I stay compliant?
If these bills get passed, there will be a boom in trucking jobs and freight demand, as well as a rise in new venture trucking startups.
This means carriers will need to smoothly manage the compliance requirements in DQ files, ELD management, drug testing, and more.
At CNS, our DOT Compliance Programs focus on Proactive Safety Management (PSM),a mindset that will ensure your fleet’s safety and compliance is always in order and ahead of the FMCSA.
Our PSM Motor Carrier Program includes:
- ELD management
- Driver Qualification File Management
- New driver on-boarding
- Driver safety meetings
- CSA score management
- Policies and handbooks
- Vehicle maintenance
- and more