The bipartisan Infrastructure Investment and Jobs Act provides for $1.2 trillion in federal spending over the next five years. Learn how this could impact economic recovery and what it could mean for your business, organization, or agency.
This discussion on the Infrastructure Investment and Jobs Act explores the outlook for changes relevant to companies and capital markets.
At a glance: what's in the Infrastructure Bill?
Further explore the $550 billion of new federal spending to be allocated over the next five years.
Infrastructure in the United States is deteriorating. The Infrastructure Investment and Jobs Act (IIJA or the Infrastructure Bill) would provide for $1.2 trillion in spending, $550 billion of which would be new federal spending to be allocated over the next five years. The historic investments included in the IIJA, from clean energy to broadband, would significantly reframe the future of infrastructure in the US.
$110 billion for roads, bridges and other major projects. This includes $40 billion for bridge repairs and replacement, as well as $17.5 billion for major projects. It also would reauthorize the surface transportation program (Fixing America’s Surface Transportation (FAST) Act) for the next five years.
$39 billion to modernize transit and improve accessibility. In addition, the deal would continue existing transit programs for five years as part of the surface transportation reauthorization.
$66 billion to Amtrak for maintenance, to upgrade tracks in the Northeast Corridor and bring rail service — including high-speed rail — to other areas of the country.
$73 billion for power grid upgrades, including building thousands of miles of new transmission lines for renewable energy and research for new technologies like nuclear reactors and carbon capture.
$7.5 billion to build a nationwide network of charging stations for electric vehicles to help accelerate the adoption of nonfossil fuel cars.
$5 billion for new school buses, although the program would allow half of that to go toward buses that run on natural gas or diesel. The plan also includes $2.5 billion for ferries.
$25 billion for airport repairs and efforts to reduce congestion and emissions. That includes encouraging the use of electric and other low-carbon technologies. It would also invest $17 billion in port infrastructure.
$50 billion to help communities fight cyber attacks and the effects of climate change. The funds include money to protect against droughts and floods.
$55 billion to improve drinking water, including dedicated funding to replace lead pipes and dangerous chemicals.
$65 billion for high-speed internet to make sure that every household can access reliable broadband service.
$21 billion dedicated for environmental remediation to address past pollution that harms public health.
The plan also includes $1 billion to reconnect communities that have been divided by past infrastructure projects, such as highways splicing through established areas.
$11 billion for transportation safety, including programs to reduce crashes and fatalities, especially for cyclists and pedestrians.
IIJA: Plan strategically to maximize opportunities
Mike Parker, EY Americas Infrastructure Leader, shares insights on how to create a strategic plan that uses IIJA funding effectively. Businesses should not overlook the opportunity to reimagine new areas of infrastructure that require design, financial analysis and procurement, the opportunity to leverage additional private capital, and the opportunity to design projects to attract and catalyze more investment.
What Build Back Better means for businesses
Funding the Infrastructure Bill
Here are some of the major ways that lawmakers are proposing to offset the cost of the spending:
from using unspent pandemic relief funds appropriated in earlier legislation
in additional tax revenue from the extra economic growth generated from the infrastructure improvements
from recouping unemployment benefits claimed by fraudsters
for delaying the Medicare rebate rule enacted under former President Donald Trump
from unspent unemployment benefits from states that ended the enhanced payments early
from increasing tax reporting rules for cryptocurrency investors
from fees on government-sponsored enterprise
from spectrum auction sales
from a Superfund fee on corporations that pollute