When the bill arrives... on President Biden's desk. On Friday, the House finally approved a $1T bill to give America's old infrastructure a major facelift, after the Senate passed it back in August. Biden could sign the bill this week, pouring $550B in fresh funds into transportation, broadband, and utilities. The other half of the bill reauthorizes existing infrastructure programs for five years. Where the new funds will go:
- $110B to roads and bridges, $66B to railways, and $39B to public transit.
- $65B to expand internet access, including $30 monthly vouchers for low-income families.
- $50B to make the power grid more resilient to cyberattacks and natural disasters (see: Hurricane Ida).
- $55B to upgrade water systems (think: fewer lead pipes) and $7.5B to build EV charging stations.
$1T charcuterie board... While it’s a major achievement for Biden’s agenda, the infrastructure bill is an appetizer to the main course: a separate $2T education, healthcare, and climate package. Think: universal pre-K, two free years of community college, public housing, and clean-energy development. Dems plan to vote on it before November 19.
- To help cover the $1T bill that just passed, Congress would repurpose existing Covid funds and apply new IRS tax-reporting requirements for crypto.
- The $2T bill would largely be paid for by raising taxes on corporations and the wealthy. Dems plan to approve it through reconciliation, which wouldn't require GOP support.
All eyes are on the dinner bill... And even raising taxes, repurposing funds, and adding crypto tax requirements won't cover the full check. The Congressional Budget Office (CBO) found that the infra bill would contribute $256B to the federal deficit over a decade. Deficit = how much more the government spends than it brings in. Progressive Dems expected to pass the $2T bill on Friday along with the $1T one, but centrist lawmakers are waiting for the CBO to say how much it would cost taxpayers. The US deficit hit a record $3.1T last year.