Biden OKs $1.2T bipartisan infrastructure bill with senators

Agreement for $579B in additional spending over 5 yrs

      President Joe Biden and a bipartisan group of senators have agreed on a $1.2 trillion package of infrastructure spending on roads, bridges and public transit systems as well as electric buses, public water systems, power grids and other public works.

      The deal was announced last week after a meeting between the president and 21 senators--11 Republicans and 10 Democrats.

      It includes about $600 billion in additional spending over the next five years. The White House said in a Fact Sheet that along with the usual baseline spending the package would allocate $973 billion over five years and $1.21 trillion over eight years.

      Most of the money is expected to be channeled to state and local governments, which will award contracts. Small business contractors are expected to be involved in the infrastructure projects primarily through the Transportation Dept.’s Disadvantaged Business Enterprise (DBE) program, which requires the state and local entities to make good faith efforts at setting aside contracts to DBEs.

      Transportation items receiving additional spending--above baseline--include:

• $109 billion for roads and bridges;
• $66 billion for freight and passenger rail;
• $49 billion for public transit systems;
• $25 billion for airports; and
• $7.5 billion for electric vehicle charging stations.

      Other infrastructure spending in the package includes:

• $73 billion for power lines carrying solar and wind electric power;
• $65 billion for broadband access; and
• $55 billion for drinking water and wastewater systems.

      To pay for the additional spending, Biden and the bipartisan group of senators are proposing to recall some unused COVID relief funds and unemployment insurance, crack down on people dodging taxes, auction off radio spectrum and sell off part of the Strategic Petroleum Reserve.

What are the chances of passage?

      Given that the package has support of at least 11 Republicans and 10 Democrats, if would appear to have a reasonable chance at passage. However, neither Senate Majority Leader Chuck Schumer, D-NY, nor Minority Leader Mitch McConnell, R-KY, has endorsed it.

      Biden called the deal a “compromise” and said will not sign it unless he achieves more of his economic agenda in a separate bill “to finish the job on child care, education, the caring economy, clean energy and tax cuts for American families,” according to a report in Politico.

Biden OKs $1.2T bipartisan infrastructure bill with senators

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