President Joe Biden’s next great hurdle to tackle is laying out and implementing the $2 trillion infrastructure plan to shift America to greener energy over the next eight years.
Here’s a breakdown of how the money will flow, according to CNN:
Transportation ($621 Billion): A big part of Biden’s effort is to improve roads, bridges, railways and other infrastructure. Going even more granular, $115 billion would be allocated to modernize 20,000 miles of highways, roads and main streets, while another $20 billion would improve road safety. Others include $85 billion to modernize and expand existing transit, $80 billion to tackle Amtrak’s repair backlog, $25 billion to airports and $17 billion to inland waterways.
- There’s also $174 billion earmarked for electric vehicles. Biden has a goal of building a national network of 500,000 charging stations over the next decade.
Home Care Services and Workforce ($400 Billion): Biden wants to “bolster caregiving for aging and disabled Americans.” The plan would expand long-term care services under Medicaid and would also improve wages for home health workers.
Manufacturing ($300 Billion): Under Biden’s plan, $50 billion would go to semiconductor manufacturing, $30 billion toward medical manufacturing, $20 billion toward “regional innovation hubs that would support community-led projects” and $46 billion for making government purchases of things like electric cars, charging ports and more things to boost clean energy.
Housing ($213 Billion): The funds would help build, renovate and retrofit more than two million housing units and build more than 500,000 homes for low- and middle-income homeowners.
Research and Development ($180 Billion): The details here are broad, but Biden wants to “advance U.S. leadership in critical technologies” such as climate science, innovation and research and development. The plan also calls for eliminating racial and gender inequities in science, technology, engineering and math.
Water ($111 Billion): Biden wants to replace all lead pipes and service lines in the nation, which could reduce exposure in 400,000 schools and child care facilities.
Schools ($100 Billion): The plan aims to build and upgrade schools with better ventilation, updated technology labs and improved school kitchens. There’s another $12 billion for infrastructure needs at community colleges and $25 billion for child care facilities.
- Workforce Development ($100 Billion)
- Veterans’ Hospitals and Federal Buildings ($18 Billion)
Biden plans to pay for it by increasing corporate tax, imposing a global minimum tax, taxing on book income and corporate inversions.
Please see my full thoughts from yesterday’s Morning Cents.
In general, I think there are a lot of value-additive initiatives in this spending bill, especially the parts that promote economic activity and industry.
But we need to make sure the money is spent wisely and efficiently. That involves focusing on solving the core problems instead of merely throwing money at people and companies, as well as implementing proper incentive structures.