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.
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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.
The Infrastructure bill will spur overdue road and bridge repairs with $110 billion in new funds dedicated to addressing safety and equity within our communities.
$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.
The IIJA represents an opportunity to invest $39 billion in transit of the future and support new technologies and evolving mobility needs.
Senior Managing Director, Infrastructure Advisory, Ernst & Young Infrastructure Advisors, LLC
$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.
This bill will repair dilapidated railways impacted by Hurricane Sandy and increases funding for freight rail and safety at rail-highway grade crossings.
$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.
IIJA brings back focus to grid reliability and resiliency, preventing outages through enhanced hazard-mitigation and utility demand responses.
$7.5 billion to build a nationwide network of charging stations for electric vehicles to help accelerate the adoption of nonfossil fuel cars.
As state and local governments look to increase electrification in transport, IIJA includes significant funding for electric vehicles and the infrastructure essential to support EV development.
Electric buses, ferries
$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.
The IIJA funding will enable both public and private school systems to convert to electric or low carbon school buses, which to-date, has been a cost-prohibitive exercise for most communities throughout the US.
$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.
IIJA bolsters support to airport and air traffic infrastructure with $25 billion in dedicated aviation funding.
Resilience, climate change
$50 billion to help communities fight cyber attacks and the effects of climate change. The funds include money to protect against droughts and floods.
The $1.2T bill is the most explicit signal yet from the federal government that the economic damages of a warming planet have already arrived.
EY Americas ESG Markets Leader; Senior Partner, Health Sciences & Wellness, Ernst & Young LLP
$55 billion to improve drinking water, including dedicated funding to replace lead pipes and dangerous chemicals.
The IIJA provides the largest investment in water infrastructure in the nation’s history, focused on providing safe, clean water to disadvantaged communities that need it most.
$65 billion for high-speed internet to make sure that every household can access reliable broadband service.
IIJA's broadband based funding will accelerate digital infrastructure investment and assist in addressing coverage, quality, affordability, and digital literacy aspects of the digital divide
$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.
The IIJA includes $21 billion to advance environmental justice by remediating environmental harms and legacy pollution throughout the nation.
$11 billion for transportation safety, including programs to reduce crashes and fatalities, especially for cyclists and pedestrians.
The ‘Safe Streets for All’ program will fund state and local ‘vision zero’ plans and other improvements to prevent crashes and fatalities, with enhanced focus on 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