President Biden‘s $1.2 trillion plan to rebuild the nation’s crumbling infrastructure will create close to 1 million new jobs over the next decade, according to a new report published this week.
The analysis from S&P Global – which was circulated by the White House – estimates that by 2030, the Infrastructure Investment and Jobs Act would boost employment by more than 880,000, with many middle-class jobs, including in construction, engineering and accounting.
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If it becomes law, the bipartisan, Senate-approved infrastructure bill will also increase per capita personal income in 2030 by about $100 per person, or roughly 10.5%, according to the S&P study. With fatter paychecks and more jobs, households are projected to spend an additional $677 billion over the eight-year period.
“This will likely help offset some of the impact of COVID-19 on the jobs market, providing a lifeline to the millions of unemployed workers, including many long-term unemployed, who were displaced by it,” the analysis said.
At the same time, the infrastructure bill, which includes $550 billion in new funding, could boost productivity in the long run, raising GDP – the broadest measure of goods and services produced in the country – by 2.1% on an annual basis over the next eight years. The plan is estimated to add about $1.4 trillion to the economy over the next eight years.
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Without additional infrastructure spending, GDP is expected to plateau around 1.7% by 2030, according to economic projections released by the nonpartisan Congressional Budget Office in July.
The measure includes $110 billion for roads, $73 billion for power infrastructure, $66 billion for passenger and freight rail, $65 billion to expand broadband access, $55 billion for clean drinking water, $39 billion for public transit, $25 billion for airports, $21 billion for environmental remediation, $17 billion for ports, $11 billion for transportation safety, $7.5 billion for electric vehicle infrastructure, $5 billion for zero or low-emission busses and $1 billion to demolish or reconstruct infrastructure that divided communities.
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It will be paid for by repurposing unspent coronavirus relief funds, along with recouping fraudulently paid unemployment money, unemployment money returned by states that prematurely ended a federal $300-a-week benefit, targeted corporate users fees, strengthened tax enforcement for cryptocurrencies and economic growth created by the investments.
The proposal cleared a major hurdle this week, after House Democrats overcame an interparty dispute, approving a $3.5 trillion budget plan that will serve as the basis for a massive reconciliation bill and set a Sept. 27 deadline for a vote on the infrastructure bill.