Federal Infrastructure Deal
President Joe Biden announced yesterday that his administration and a bipartisan delegation of Senate negotiators have reached an agreement on a $1.2 trillion infrastructure package. The Bipartisan Infrastructure Framework comes at a significant price reduction from the $2.5 trillion American Jobs Plan announced in March.President Joe Biden announced yesterday that his administration and a bipartisan delegation of Senate negotiators have reached an agreement on a $1.2 trillion infrastructure package. The Bipartisan Infrastructure Framework comes at a significant price reduction from the $2.5 trillion American Jobs Plan announced in March. The proposed framework will address physical infrastructure priorities, with nearly $580 billion in new spending over the next eight years. President Biden noted that these critical investments will create millions of well-paying jobs for middle-class Americans as well mark the largest investment to modernize the country's infrastructure in more than half a century. Included in the agreement is:
- $109 billion for roads, bridges and other infrastructure projects
- $49 billion for public transit
- $66 billion for railway transportation
- $41 billion for airports, seaports and waterways
- $55 billion for water infrastructure
- $73 billion for energy grid and power structure
- $65 billion for improvements to broadband systems
- $7.5 billion for 500,000 electric vehicle charging network along highways and interstates
- $7.5 billion for electric school and public transit buses; and
- A new financial authority structure to leverage private capital investments in infrastructure and clean energy projects.
Notably absent was a corporate tax rate hike from 21% to 28% and a 21% global minimum tax rate on U.S. corporations initially floated as measures to offset the cost of the legislation. Though there is currently no formal legislative language and full details on funding remain unclear, the president doubled down on his commitment not to raise income taxes on earners making less than $400,000 annually. President Biden further assured no increase to the gas tax or new fees on electric vehicle purchases. Congressional leaders plan to address the cost with the reallocation of unspent COVID-19 pandemic relief funds from the CARES Act and the American Rescue Plan.
The White House fact sheet on the infrastructure framework can be accessed here. This is a late-breaking development and the BOMA International advocacy team will share more on how this framework could impact commercial real estate professionals as more information becomes available.