Biden Unveils $2.3 Trillion Infrastructure Proposal
President Joe Biden has unveiled his American Jobs Plan, a $2.3 trillion plan to fund infrastructure projects such as roads, bridges and railways, but also what the administration terms “human infrastructure” investments in childcare, as well as measures to transform the energy sector toward a carbon-free future. In order to fund the plan, the Biden administration proposes to raise the corporate tax rate from the current 21% to 28% and would seek a global minimum tax for multinational corporations.
Of the $2.3 trillion proposal, $115 billion would be dedicated to modernizing bridges, highways and roads. For water systems, electric grid and expanding high-speed broadband, the plan would provide $111 billion. Funding is also provided for public transportation systems, including Amtrak, and for expansion of electric vehicle charging stations. A substantial portion of the proposal, approximately $400 billion, would be dedicated to expanding childcare availability. Funding is also included in connection with affordable housing and clean energy efforts.
The broad scope of the proposal beyond traditional infrastructure funding and the effort to increase corporate taxes has garnered nearly unanimous Republican opposition, despite hopes that the package would be a bipartisan effort. Senate Republicans have indicated a willingness to work on a smaller package more focused on traditional infrastructure spending, but House and Senate Democrats have opposed that approach. House of Representatives Speaker Nancy Pelosi has signaled her intent to pass an infrastructure bill through the House by July 4, and Biden and Senate Democrats are open to using the budget reconciliation process, which allows a simple majority vote in the Senate for passage of legislation instead of the 60 votes normally required to overcome a filibuster, to bypass Senate Republican opposition.