Impact of Biden’s infrastructure plan on the construction industry | Williams mullen
On March 31, 2021, President Biden unveiled his American Jobs Plan (the “Plan”), proposing to spend approximately 1% of U.S. gross domestic product per year over eight years on repairing and improving infrastructure , research and development in the manufacturing sector, the growth of small businesses. and workforce training. The plan aims to spend around $ 2 trillion nationwide over the next decade.
The plan will likely have a significant impact on the construction industry. While details have not been revealed, including allocations to specific states or areas, the plan includes around $ 1.3 trillion in spending on construction projects in various industries and communities, including $ 621 billion. dollars for repairs and the creation of new surface transportation networks such as highways, bridges, ports and railways; $ 100 billion for infrastructure resilience; $ 111 billion for clean drinking water projects; $ 100 billion for broadband infrastructure to achieve 100% coverage and for drinking water, wastewater and stormwater systems; $ 100 billion for electrical transmission systems; $ 213 billion to build, preserve and renovate over 2 million homes and commercial buildings, upgrade schools and community colleges, and upgrade veterans hospitals and federal buildings; and $ 40 billion to modernize laboratory research infrastructure. It prioritizes spending in historically underfunded communities and the development and distribution of clean / renewable energy.
The specific funding described in the plan includes:
Repair highways, rebuild bridges, modernize ports, airports and transit systems
Transforming our crumbling transportation infrastructure ($ 621 billion)
- $ 115 billion to upgrade bridges, highways and roads most in need of repair and improve road safety, including 20,000 miles of highways, roads and main streets; repair the most economically significant large bridges to rebuild and repair 10,000 small bridges.
- Double federal spending to $ 85 billion to modernize existing public transit, including increasing the number of buses, buses and rail services in new communities.
- $ 80 billion to fill Amtrak’s repair backlog and upgrade the northeast corridor.
- $ 174 billion in the electric vehicle market, such as subsidy and incentive programs for state and local governments to build a nationwide network of 500,000 EV chargers by 2030, to replace 50,000 transport vehicles in common diesel and to convert 20% of school buses to electric buses.
- $ 25 billion for airports to modernize FAA assets and support terminal renovations.
- $ 17 billion for waterways, coastal ports, land entry points and ferries, including air pollution reduction programs.
Make our infrastructure more resilient ($ 100 billion)
- Increase spending to support infrastructure in vulnerable and historically underfunded communities, including through FEMA’s Infrastructure and Resilient Communities Building Program and HUD’s Community Development Block Grants Program.
- Spending on programs to protect against wildfires and hurricanes in coastal communities, and to promote resilience against sea-level rise, agricultural resource management and climate-smart technologies, and programs water efficiency and recycling for western droughts, tribal water settlements and dam safety.
Rebuild the drinking water infrastructure, provide a renewed electricity grid and provide high speed broadband
Making clean and safe drinking water a right in all communities ($ 111 billion)
- $ 45 billion for EPA’s State Revolving Drinking Water Fund and Water Infrastructure Improvement for Nation Act Grants to eliminate all lead pipes and service lines in the United States
- $ 56 billion in low-cost flexible grants and loans to disadvantaged states, tribes, territories and communities to modernize and scale up programs to modernize drinking water, wastewater and water systems rain.
- $ 10 billion to monitor and remediate substances in drinking water and for small rural water systems and household well and sewer systems, such as drainage fields.
Broadband broadband infrastructure to achieve 100% coverage, upgrade and monitor drinking water, wastewater and stormwater systems ($ 100 billion)
Resilience of electric transmission, modernization of electricity generation methods and provision of clean electricity ($ 100 billion)
- Investment tax credit for the construction of at least 20 gigawatts of high voltage power lines and the creation of a new grid deployment authority at the Ministry of Energy.
- 24/7 clean electricity purchase for federal buildings.
- Establish a clean energy and electricity efficiency standard aimed at more efficient use of existing infrastructure and leveraging existing energy sources without carbon pollution, such as nuclear and hydropower, seeking to switch to 100% carbon-free energy by 2035.
- $ 16 billion to plug orphan oil and gas wells and abandoned mines and to restore and salvage abandoned mines.
- $ 5 billion for the remediation and redevelopment of the Brownfield and Superfund sites.
- Lift the $ 3 million cap on the Economic Development Agency’s public works program.
- Creation of 10 pioneering facilities demonstrating carbon capture renovations for large steel, cement and chemical production facilities.
Build, preserve and renovate more than two million homes and commercial buildings, modernize our nation’s schools and daycares, and modernize veterans hospitals and federal buildings
Build, preserve and renovate over two million homes and commercial buildings to tackle the affordable housing crisis ($ 213 billion)
- $ 20 billion in tax credits under the Neighborhood Home Investment Act over five years to build or rehabilitate homes.
- Establish a $ 27 billion clean energy and sustainability accelerator to stimulate private investment in distributed energy resources; modernization of residential, commercial and municipal buildings; and ensure clean transport.
Modernize schools and preschools as well as Veterans Affairs hospitals and other federal buildings
- $ 100 billion to modernize and build new public schools through $ 50 billion in direct grants and $ 50 billion in leveraged bonds, including to improve indoor air quality and ventilation, energy efficiency and school kitchens.
- $ 12 billion to states to meet existing physical and technological needs at community colleges.
- $ 25 billion to modernize child care centers in high need areas through a child care growth and innovation fund and an expanded business tax credit – receiving 50% of the first million construction cost dollars per facility – to build day care centers in the workplace.
- $ 28 billion to modernize federal Veterans Affairs hospitals and buildings.
Revitalize manufacturing, secure American supply chains, fund R&D and train Americans for the jobs of the future ($ 480 billion)
- $ 50 billion for the National Science Foundation to focus on areas such as semiconductors and advanced computing, communications technology, energy technology, and biotechnology.
- $ 40 billion to modernize laboratory research infrastructure.
- $ 35 billion to develop new ways to reduce emissions, build climate resilience and increase funding for climate research.
- $ 15 billion in demonstration projects for climate research and development priorities, including utility-scale energy storage, carbon capture and storage, hydrogen, advanced nuclear , rare earth element separations, offshore wind turbines, biofuels / bioproducts and electric vehicles.
- $ 46 billion for the manufacture of electric vehicles, charging ports, electric heat pumps for buildings, advanced nuclear reactors and fuel.