President Biden Released Details of His $2.3 Trillion Federal Investment Plan Entitled “The American Jobs Plan”
Posted On: Apr 01, 2021
NAPA Legislative Update:
On Wednesday, March 31, President Biden released details of his $2.3 trillion federal investment plan entitled “The American Jobs Plan.” Overall the plan’s price tag is $2.3 trillion, with $571 billion allocated to various transportation programs including highways, roads, bridges, transit, rail, research, and safety.
The plan includes a one-time additional investment of $115 billion for highway and highway safety programs over the next five years. This investment is in addition to the $249.8 billion that would be spent for highways and highway safety programs over the next five years under the latest Congressional Budget Office projections.
According to the plan, the $115 billion in funding would be used to modernize 20,000 miles of highways, roads, and main-streets, and fix the ten most economically deficient bridges in the country in need of reconstruction. It will also repair the worst 10,000 smaller bridges in the United States. The President’s plan says the $115 billion will be used to improve air quality, limit greenhouse gas emissions, and reduce congestion. This suggests the existing Congestion Mitigation Air Quality (CMAQ) program will be the core highway program that distributes the funding to the states. The President’s plan on roads and highways calls for not only “fixing them first” but “fixing them right” with safety, resilience, and all users in mind.
There is $20 billion allocated for highway safety programs and $44 billion for mega projects of national and regional significance.
Airports would receive an additional $25 billion for upgrades including airfield projects, and invest $17 billion to improve inland waterways, coastal ports, and land ports.
The plan will require that goods and materials are made in America and shipped on U.S.-flag, U.S.-crewed vessels.
The President’s plan would fund basic research into advanced pavements that recycle carbon dioxide and “future” proof investments that will last decades to leave coming generations with a safe, equitable, sustainable transportation system.
In order to pay for the American Jobs Plan, President Biden has proposed “The Made In America Tax Plan” that would raise $2 trillion over the next 15 year. The plan would reset the corporate tax rate at 28%. President Trump had reduced the levy to 21% from 35% as part of the 2017 tax reform law.
Jeff Davis with the Eno Center for Transportation said, “The choice of payfor strongly implies that they are going for a 50-vote Senate strategy, not a 60+ vote Senate strategy.” This means that lawmakers will have to move the tax plan separately through Congress under reconciliation rules, and the surface transportation reauthorization legislation will move through the Congress under regular order.
The one big question not answered in the President’s plan is the federal-state share of the additional highway funding. The document is silent on this question. Under existing programs, the cost share is 90% for interstate highway projects and 80% for other highway projects. If the Federal share remains the same, states will have to significantly ramp up their spending to take advantage of President Biden’s funding proposal.
As NAPA receives more details of the President’s plan, additional updates will be provided.
- Ashley Jackson, Senior Director, Government Affairs, National Asphalt Pavement Association
- Jay Hansen, Executive Vice President – Advocacy, National Asphalt Pavement Association