Articles & Alerts
The $2.25 Trillion Infrastructure “American Jobs Plan” and What it Means for the Architecture, Engineering and Construction Community
President Biden has put forward the long-awaited $2.25 trillion “American Jobs Plan” spending proposal for a massive infrastructure renovation. The “American Jobs Plan” lays out a budget of $621 billion for transportation infrastructure; $689 billion for building and utilities; and $500 billion for worker training, research and development, and domestic manufacturing initiatives.
Key components of the plan include funding to: improve highways, bridges, ports, airports and transit systems; provide clean drinking water; renew the electric grid and provide high-speed broadband internet service; update the U.S. power grid; increase affordable housing options; modernize public schools and community colleges; improve access to child care; modernize Veterans Affairs hospitals and federal buildings; raise wages and benefits for home health care workers; invest in research and development; strengthen American manufacturing; invest in workforce development and protect workers.
On the transportation front, the proposal includes:
- $174 billion for electric vehicle incentives
- $115 billion for roads and bridges
- $85 billion for public transit
- $80 billion for passenger and freight rail
- $50 billion in disaster resilience of infrastructure
- $25 billion for airports
- $20 billion to improve road safety
- $20 billion to mitigate infrastructure impact on underserved communities
- $17 billion for waterways and ports
For buildings and utilities, the plan includes:
- $213 billion for affordable housing
- $100 billion for broadband internet
- $100 billion for electric grid and clean energy
- $100 billion for public schools
- $66 billion for water systems
- $45 billion to eliminate lead pipes
- $25 billion for child care facilities
- $18 billion for VA hospitals and clinics
- $12 billion for community colleges
- $10 billion for federal buildings
The Administration is proposing to pay for the plan over 15 years primarily by increasing the corporate tax rate to 28% from 21%. The tax overhaul, dubbed the “Made in America Tax Plan,” seeks to incentivize job creation and investment in the U.S., end profit-shifting to tax havens and ensure that large corporations pay “their fair share,” according to the Biden Administration. Unfortunately, the plan includes tax increases on job-creating construction firms that are still recovering from the effects of the COVID-19 pandemic.
The President, in his official press conference announcement, also alluded to the inclusion of the Protecting the Right to Organize Act (“PRO Act”) as part of the package. This initiative would provide additional union organization and strike rights, undercut the National Labor Relations Board/ NLRB dispute resolution process, strengthen employee bargaining rights, and provide for harsher employer penalties.
For more information on how the “American Jobs Plan” and potential tax rate increases may impact your company, please reach out to Phillip Ross or your Anchin Relationship Partner.