On June 24, President Biden announced a $1.2 trillion plan to update the nation’s infrastructure, which he defined as “a once-in-a-generation investment in America”. The plan would upgrade 20,000 miles of roads, 10,000 bridges as well as the top ten most economically important bridges, fight against climate change, and promote racial equality. While initially to be funded by the increase in taxes, President Biden announced funding would be sourced through reducing the IRS tax gap, repurposing unused relief funds from 2020, redirecting unused unemployment insurance relief funds, private activity bonds, and several other options.
In an effort to promote an economically conscious nation, the plan includes a focus on climate change that plans to construct roads, bridges, and airports that would be able to combat extreme storms, floods, and fires. With over $100 billion in spending on research and development planned, breakthroughs in green technology are expected to influence the industry in the construction of new, energy efficient buildings.
Other goals of the plan include improving and updating the electric grid, which is in response to the state-wide blackouts in Texas, as well as modernizing transportation by stimulating the electric car industry. This plan’s overall goal is to make the purchase and upkeep of electric cars cheaper for the common buyer as well as granting tax credits and incentives to electric vehicle manufacturers. The deal aims to build 500,000 electric vehicle chargers along highways. A key focus of the deal is to benefit disadvantaged communities by eliminating lead water pipes and delivering drinking water to millions of American families and hundreds of thousands of schools. Lastly, the deal looks to provide high-speed internet to every American while also decreasing the current cost of attaining internet.
While the Infrastructure Deal still has several key hurdles such as funding, training, and bipartisan agreement, there is hope that the deal could be agreed upon in a reasonable amount of time as there is not a strong opposition from either side now that Biden retracted his plan of tax rate increases. The new deal would stimulate the economy while also creating many jobs and opportunity within the construction industry. Please make sure to look for future updates from UHY.