President Biden Reveals $2 Trillion Infrastructure Proposal

On Wednesday evening, March 31, 2021, President Biden introduced a $2 trillion infrastructure proposal, called the “American Jobs Plan.” Additional information regarding the bill was published in a Fact Sheet released by the White House. The Fact Sheet emphasized the benefits of the proposal, which include job creation, assistance for small businesses and underserved communities, combatting the impacts of climate change, improvements to transportation systems, and increasing the reliability of access to and the quality of utilities such as electricity and water. The plan will be paid by a proposal called the “Made in America Tax Plan,” which will raise the corporate tax rate to 28%. 

The key spending provisions in the American Jobs Plan are grouped into four main sections, and each section includes targeted spending that may benefit small businesses: 

1. $621 billion (B) for the repair and improvement of transportation infrastructure: 

• $115B to improve to roads and bridges; 
• $80B for repairs to passenger and freight railway systems; 
• $20B for “regional innovation hubs” that will link urban and rural neighborhoods and a “Community Revitalization Fund” to increase investment in underserved communities. 

2. $689 billion to improve community and commercial infrastructure: 

• $100B for the construction of schools; 
• $66B for water systems; 
• $50B to lower-income families and small businesses for disaster resilience investments; 
• $45B for the elimination of lead pipes; and 
• $25B for childcare facilities. 

3. $580 billion for research and development on climate change, manufacturing and small business assistance, and workforce training and development: 

• $52B for domestic manufacturers—98% of which are small- to mid-sized companies; 
• $48B for workforce development; 
• $31B to create “small business incubators and innovation hubs” that will provide access to small business financing and research and development funds; 
• $20B for community investment; 
• $12B to underserved communities; and 
• $5B to create a “Rural Partnership Program” to increase community and economic development. 

4. $400 billion for home and community care for seniors and disabled persons, as well as their caretakers. 

On Sunday, Energy Secretary Jennifer Granholm stated that if President Biden is unable to secure bipartisan support for the bill, he would be willing to move forward without the assistance of Republican legislators. She also said that a majority of Americans support the plan.  

Many Republican Senators have already criticized the proposal. Mitch McConnell promised to oppose the package “every step of the way,” Roy Blunt called for a smaller package of $615 billion, and Roger Wicker stated that the plan is a “huge tax increase,” rather than an infrastructure bill. Two Democratic Senators also believe that changes need to be made to the bill:  Joe Manchin indicated that he does not support a 28% corporate tax rate and Mark Warner said he had already “expressed concerns” to the White House. 

Despite the opposition to the proposal, the plan is still in its early stages. Thus, it is likely that the bill will go through multiple iterations before being introduced to Congress for a vote. However, it is possible that the American Jobs Plan could be enacted without Republican support, by following a path similar to the American Rescue Plan that was signed into law last month.