A Summary of the Bipartisan Infrastructure Bill HR 3684

How it is going to help the construction industry, the national economy, and job creation?

By almost any measure, the recently enacted $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) is enormous. In round numbers, $650 billion of the bill represents funding of the nation’s current federal infrastructure programs at continuing baseline levels for FY22–FY26 (five years @ $130 billion/yr). The remaining $550 billion is what the bill has added - above baseline levels. The $550 billion represents “Extra Funding” added to existing federal programs, plus the addition of some new infrastructure programs.

The $550 billion “Extra Funding” will not be evenly split over five years. It is expected that about 57% will be paid out in the first five years and 43% paid out in FY27–FY31 as jobs get awarded and completed. Some new programs will take time to roll out and FY22 will see a lower increase due to the fact it is already half over.

The Government projection for spending the $550B looks like this:

FY 2022 2023 2024 2025 2026 (2022-26) 2027 2028 2029 2030 2031 (2023-31) TOTAL $B 27.2 50.5 68.0 81.9 88.4 ($316B) 74.0 61.0 43.0 32.0 24.0 ($234B) $550B

In the simplest analysis let’s take the $550B “Extra Funding” divided by 10 years = $55B/yr “Extra Funds.” Baseline Federal Spending of $130B/yr + $55B/yr = $185B/yr = Average 42% increase in annual federal infrastructure funding – ignoring inflation. Increases to most “traditional” infrastructure programs will be much less than 42% because the $550B also funds a host of new infrastructure programs and initiatives.

This spending touches every sector of infrastructure – from roads and bridges to water and sewer to energy and broadband – all with an eye toward resiliency to resist damage from changing weather patterns. The Bill is intended as an aggressive plan to modernize, upgrade, and protect the country’s network of important infrastructure assets while advancing clean and renewable energy initiatives and reducing dependence on fossil fuels.

Job Creation

The IIJA will provide millions of new job opportunities while requiring capacity expansions in both the private and public sectors. The engineers that design these projects will need more staff and office space. The contractors that build the projects will need additional tradesmen, managers, and more trucks and heavy equipment. Some companies that traditionally perform private sector work are expected to enter the public sector market. New business start-ups are predicted and are expected to receive encouragement and support from government agencies. Several specific funding programs are new to some federal agencies and may take some time to roll out. The massive increase in the number of projects being applied for, being built and overseen, and being billed out will require increases in public sector hiring at municipal, state, and federal levels.

The additional $550B in funding is expected to create approximately 4.6 million *additional jobyears of direct and indirect full time employment positions. Infrastructure-related jobs, which now comprise 12% of jobs in the U.S. workforce (130M full time U.S. workers X 12% = 15.6M), would increase temporarily to 14% of total U.S. jobs. The continued on page 23

Infrastructure Bill would revive, at least temporarily, the blue-collar economy. This would be a marked shift in the recent trajectory of the workforce. In the 1970s, 72% of jobs in America required no more than a high school education. Today, that number is around 34%. The infrastructure program is estimated to create 2.5 million (55%) good paying blue-collar job-years for workers with a high school diploma or less. The balance of the job-years (2.1 million job-years) will require at least some education beyond high school. Advances in Artificial Intelligence (AI) including robotics and automation in both manufacturing and construction are expected to compete for a limited number of both existing and new jobs in those industries in the years ahead.

*An additional 2.6M job-years of new induced jobs will be created with the $550B increase in funding. Refer to U.S. Dept. of Transportation memo 12/29/21 on page 29.

Where is the $550 Billion Being Invested?

The 2,702 page Infrastructure Investment and Jobs Act will cover the Federal portion of our nation’s baseline infrastructure funding for FY22FY26 ($650B). It also contains a one-time infusion of $550B in new spending to be allotted to specific infrastructure programs over the next 10 years. The $550B distribution is as follows:

• $110 billion (20%) for roads and bridges.

One in five miles, or 173,000 total miles, of our highways and major roads and 45,000 bridges are rated in poor condition. This investment will repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users, including cyclists and pedestrians. $40B will be reserved for bridges and $16B for mega-project assistance to highway projects of regional importance. • $66 billion (12%) for railroads. Funding includes upgrades and maintenance of

America’s passenger rail system and freight rail safety. This is the largest investment in passenger rail since the creation of Amtrak 50 years ago. The legislation invests $66 billion in rail to eliminate the Amtrak maintenance backlog, modernize the Northeast Corridor, and bring world-class rail service to areas outside the northeast and mid-Atlantic.

• $65 billion (12%) for the electric grid.

This investment includes the single largest investment in clean energy transmission continued on page 25

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in American history. It upgrades our power infrastructure, including building thousands of miles of new, resilient transmission lines to facilitate the expansion of renewable energy. It also provides money to prevent hacking of the power grid. • $65 billion (12%) for broadband. Includes funding to expand broadband in rural areas and in low-income communities. Approximately $14B of the total would help reduce Internet bills for low-income citizens.

• $55 billion (10%) for water infrastructure.

This funding represents the largest investment in clean drinking water in American history, including $15B dedicated funding to replace lead service lines and $10B for dangerous

PFAS chemical remediation. Water, sewer, and stormwater SRF programs will see substantial increased funding including expansion of eligibility for grants and loan forgiveness.

• $50+ billion (9%) for cybersecurity and

climate change. The legislation makes our communities safer and our infrastructure more resilient to the impacts of climate change and cyber-attacks, with an investment of over $50B

to protect against droughts, heat, floods, and wildfires, in addition to a major investment in weatherization. • $39 billion (7%) for public transit. The largest

Federal investment in public transit in history.

The legislation will expand public transit options across every state in the country, replacing thousands of deficient transit vehicles, including buses with clean, zero emission vehicles, and improving accessibility for the elderly and people with disabilities. • $25 billion (4.5%) for airports. This allocation provides funding for major upgrades and expansions at U.S. airports. Air traffic control towers and systems would receive $5B of the total for upgrades. • $21 billion (3.8%) for the environment. These monies will go to clean up Superfund and

Brownfield sites, reclaim abandoned mine land, and cap orphaned oil and gas wells with an emphasis on environmental justice communities. • $17 billion (3%) for ports. Half of the funds in this category would go to the Army Corps of

Engineers for port infrastructure. Additional funds would go to the Coast Guard, ferry terminals, and reduction of truck emissions at ports. continued on page 27

• $11 billion for safety. Appropriations here are to address highway, pedestrian, pipeline, and other safety areas with highway safety getting the bulk of the funding. All programs to help states and localities reduce crashes and fatalities in their communities, especially for cyclists and pedestrians.

• $8 billion for western water infrastructure.

Ongoing drought conditions in the western half of the country will be addressed through investments in water treatment, storage, and reuse facilities.

• $7.5 billion for electric vehicle charging

stations. The legislation will provide funding for deployment of EV charging stations along highway corridors to facilitate long-distance travel and within communities to provide convenient charging where people live, work, and shop. This is an initial investment to commence build out of the first-ever national network of EV chargers in the United States. • $7.5 billion for electric school buses. With an emphasis on bus fleet replacement in lowincome, rural, and tribal communities. n

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