President Joe Biden has released the first part of his two-part infrastructure and jobs proposal, known as the American Jobs Plan, on Tuesday.
According to a fact sheet on the plan, despite being the wealthiest country in the world, the U.S. is 13th in infrastructure. Biden’s plan will not only fix and update roads bridges, tunnels, water systems, and the country’s electric grid, but it will create jobs and fight climate change.
In order to pay for the eight-year plan, the former vice president is planning on increasing the corporate tax rate to 28%, the same level it was at before former President Donald Trump passed the Tax Cuts and Job Act in 2017. The bill will also overhaul how the U.S. taxes multinational corporations by increasing the minimum tax in U.S. corporations.
The bill is the first part of Biden’s Build Back Better agenda. Next month, he will release the second part, which will focus on addressing healthcare, childcare, and education.
The bill is likely to draw stiff Republican opposition despite infrastructure having bipartisan support. Senate Minority Leader Mitch McConnell called the bill a trojan horse that will increase borrowed money, debt, and tax increases on “the most productive parts of our economy.”
The bill will allocate $621 billion for transportation infrastructure including the repair and construction of roads, bridges, tunnels, and rail service. More than $100 billion to modernize 20,000 miles of roads across the country, repair 10,000 small bridges, and fix the 10 most “economically significant bridges in the U.S.
The plan would also double federal funds for transit projects to $85 billion. The plan would also provide Amtrak with an additional $80 billion to cover its backlog of repairs, which Democrats have been pushing for. Another $25 billion would go to airports and $17 billion will go to seaports.
Biden also included racial equity in his plan, setting aside $20 billion to reconnect neighborhoods that have been historically ignored by investment.
The plan also includes plans to fight climate change. More than $150 billion will be used to create 500,000 electric stations across the country, replace diesel vehicles, electrifying bus fleets and initiate tax incentives to make electric cars more affordable.
Manufacturing, affordable housing, technology, digital infrastructure, and climate science are also included in the package.
White House Principal Deputy Press Secretary Karine Jean-Pierre told reporters Wednesday Biden’s plan is “going to take some time” to negotiate through Congress.
“And we’re willing to, like, go with the process, and have those conversations on the Hill, which we’re already having. We’ve already been having those conversations with Republicans and Democrats. And so, we’re just going to see how this goes. But he is zeroed in, laser-focused on this plan. That’s what you’re going to hear— hear him talk more on this later today,” Jean -Pierre concluded.