On March 31, 2021, President Biden unveiled the American Jobs Plan of 2021, a $2 trillion proposal aimed at improving and modernizing the country’s infrastructure. The expansive plan includes funding to repair and build roads, bridges and airports, address grid and essential service resiliency, develop and expand clean energy, and deploy broadband service, among many other initiatives. In short, the plan sets forth a very broad definition for the term “infrastructure.” Under the plan, infrastructure spending would occur over eight years, and be paid for primarily through corporate taxes over a 15-year period.
The American Jobs Plan includes ambitious spending proposals and modifications to the tax code that will affect businesses in many sectors of the American economy. The Plan further pairs spending with measures aimed at key White House policy priorities, including spurring workforce development and job creation, supporting unions and collective bargaining rights, advancing clean energy and climate change mitigation measures, and addressing historic economic and racial inequities.
The American Jobs Plan is likely to be the first installment of a two-part package. The second proposal, known as the American Families Plan and not yet released, will center on social programs, like education and health care reforms, and is expected to be announced by the White House in the near term.
While the President’s American Jobs Plan will serve as a legislative roadmap, many critical details will be addressed in Congress over the coming weeks and months. Since Democrats control both the House of Representatives and the Senate, some version of the American Jobs Plan is expected to be distilled into legislation and ultimately passed. Indeed, Speaker Pelosi has announced an ambitious goal of passing a bill through the House of Representatives by July 4, 2021. However, with a closely divided Senate and near uniform opposition from Republicans to the President’s plan in its current form, some delay and fierce negotiations are likely. Businesses and state and local governments that might benefit from the bill should consider getting involved now to ensure that their priorities are protected and promoted.
Highlights of the American Jobs Plan proposal follow.
Power Generation Modernization and Clean Electricity Investments
Electric Vehicle Investments
Clean Water Infrastructure
Broadband and Digital Investments
Manufacturing, Supply Chain, and Research and Development Investments
Job Creation and Investment in Workforce Development
Build, Preserve and Retrofit Residential, Commercial and School Buildings
Known as the “Made in America Tax Plan,” the tax provisions of the American Jobs Plan would aim to “pay for” many of the expenditures related to infrastructure through corporate tax measures.