On March 31, President Joe Biden released the American Jobs Plan, a $2 trillion, wide-ranging infrastructure proposal that seeks to invest in all modes of transportation, water, electric, broadband, public buildings, manufacturing, and much more. On the transportation front, Biden is proposing $621 billion in “additional” investment, including:
President Biden is expected to put forth his proposal for a multi-trillion investment in infrastructure on March 31. The proposal is expected to include significant investments in a broad range of construction projects including roads, bridges, public transit, airports, drinking water and wastewater, schools, renewable energy, broadband and more. In addition to physical infrastructure, proposal is anticipated to include significant investments in “human infrastructure,” including but not limited to free community colleges, universal pre-kindergarten and paid family leave. ԹϺ welcomes sorely-needed public and private construction investment that can generate long-term benefits for our economy, communities and national security. However, ԹϺ remains concerned about the possibility of unpredictable and impracticable federal requirements being attached to those investments that, in turn, could significantly diminish its buying power and create barriers to full and open competition.
Transportation Secretary Buttigieg Testifies Lays Out Bold Vision for Infrastructure Investment
Short Answer: It’s Not Clear
House Democrats unveiled their long-awaited plan to revive earmarks – or “congressionally directed spending” as they are rebranded. The plan would allow members of Congress to direct money in the annual spending bills that would benefit specific projects in their district. The ban on this practice had resulted in this spending authority being ceded to the U.S. Department of Transportation (U.S. DOT) through discretionary grants. Following that announcement, House Transportation and Infrastructure Committee Chairman Peter DeFazio noted that earmarks would be included in the upcoming surface transportation bill and that additional details would be coming later this month. The Senate is separately working out a plan to restore earmarks however the path forward is less clear. ԹϺ will continue to track this issue as further details are released.
On February 27, the U.S. House passed President Biden’s $1.9T COVID-relief bill by a 219-212 vote, mostly along party lines. The measure is now soon to be considered by the Senate. On the infrastructure front, the package would provide: $30 billion to public transit programs, $8 billion to airports and $1.5 billion to Amtrak. The vast majority of those funds would go to maintaining existing operations, not capital construction. The measure would also provide $350 billion for state and local governments.
Carper Reiterates Memorial Day Goal for Committee Passage of Bill
Government-Mandated Project Labor Agreements, Local Hire Mandates and More
On February 10, the U.S. House Transportation and Infrastructure Committee approved its portion of President Biden’s $1.9 trillion COVID-relief bill. The legislation would provide $30 billion to public transit programs, $8 billion to airports and $1.5 billion to Amtrak. The vast majority of those funds would go to maintaining existing operations. However, the Federal Transit Administration’s capital investment grants programs would receive $1.25 billion ($1 billion for New Starts and Core Capacity program and 250 million for Small Starts program) and $608 million would be allocated to airport development projects. While some have pointed to the $350 billion allotted for state and local governments in the president’s COVID-relief bill as a possible way to help fund new construction investment projects, how exactly that funding is spent appears likely to be left to state and local governments to decide. At a minimum, that funding could help prevent public owners from delaying or canceling construction projects.
On February 2, the U.S. Senate voted to confirm the nomination of Pete Buttigieg to serve as Secretary of the U.S. Department of Transportation (USDOT) by an 86-13 vote. Buttigieg officially took the helm of the Department upon his swearing in by Vice President Kamala Harris on February 3. During his January 21 hearing, he affirmed his commitment to the Biden Administration’s plans to prioritize rebuilding our nation’s infrastructure. Ahead of the hearing, ԹϺ stated its support for Buttigieg’s confirmation and called on the committee to expeditiously advance his nomination. ԹϺ looks forward to working with Secretary Buttigieg to address the vital needs of our nation’s infrastructure.