On June 24, 2021, The Biden administration announced its support for the Bipartisan Infrastructure Framework (BIF). In nearly a century, American infrastructure has not encountered such an extensive bill as the BIF, totaling $579 billion in investments distributed over eight years for a total of $1.2 trillion in funding. The White House articulated that the “$1.2 trillion Bipartisan Infrastructure Framework will make investments in clean transportation infrastructure, clean water infrastructure, universal broadband infrastructure, clean power infrastructure, remediation of legacy pollution, and resilience to the changing climate”. A detailed breakdown of these infrastructure investments is detailed below:
|Roads, bridges, major projects||$109|
|Passenger and Freight Rail||$66|
|Electric buses / transit||$7.5|
|Ports & Waterways||$16|
|Power infrastructure incl. grid authority||$73|
|Western Water Storage||$5|
|Total Amount Per year is:||$579 Billion|
The bill will be financed through a combination of closing the tax gap, redirecting unspent emergency relief funds, targeted corporate user fees, and the macroeconomic impact of infrastructure investment. There were a few non-negotiable payment factors that members of the legislative body repeatedly did not agree to, including Senate Minority Leader Mitch McConnell who said, “I think we need to see the bill before we decide whether or not to vote for it”.
Recently, the two parties met again to attempt to conclude the BIF. However, this bill has yet to be agreed upon by both parties. Even though this bill is not passing as effortlessly as some policymakers hoped, senators involved remain confident they’ll get a deal. The New York Post broadcasted this session and Sen. Rob Portman, R-Ohio, the lead GOP negotiator believes the discussions are “heading in the right direction,”. The White House and Senate Democratic leadership sent Republicans a “global offer” on Sunday night aimed at finishing unresolved items such as highways and bridges, water funding, broadband, Davis-Bacon Act standards, transit, unspent COVID-19 dollars, and an infrastructure bank, says the New York Post. Schumer said on the floor Monday that the Senate may stay in session through the weekend to finish the bill, warning that “further delays may mean that the Senate will remain in session into the previously scheduled August recess.”
As of July, Bipartisan Infrastructure Framework has not been officially accepted by both parties, though members of the Senate aim to finish writing the bill before August.
REMI recently hosted “Assessing the Economic Framework of the Bipartisan Infrastructure Deal,” a webinar presentation that demonstrates how these infrastructure investments will affect the economy long-term and across different geographies and demographic groups. Within this discussion, we explore multiple line items of funding and their potential impacts on regional economies. Included in the presentation is stimulation that describes the potential implications of all funding related to the Bipartisan Infrastructure Framework.
You can learn more about our recent webinar presentation by clicking here.
Please click here to view the official “Bipartisan Infrastructure Framework” report from the White House.
To read more about the cash breakdown for the BIF, please click here.