What to expect in Biden's $2 trillion infrastructure package

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Juliana Kaplan
·3 min read
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Biden speech
President Joe Biden. Patrick Semansky/Pool via AP
  • President Joe Biden is set to announce the first part of his infrastructure package on Wednesday.

  • It will contain substantial investments in transportation, broadband, care workers, and research.

  • The bill would cost about $2 trillion and is designed to be offset by tax hikes for corporations.

  • See more stories on Insider's business page.

President Joe Biden is set to announce his first infrastructure bill on Wednesday afternoon, with a price tag of about $2 trillion, principally spent over eight years. The bill will include major investments in everything from broadband to elder-care workers and is designed to be paid for with tax hikes on corporations.

Here's what to expect.

Transportation

The first area to see a historic investment would be transportation, according to an administration official. That includes funding for modernizing 20,000 miles of roads and for important bridges. Significantly, federal funding for public transit would double.

More climate-friendly forms of transit would also see a boost in the bill, with funding for electric-vehicle charging stations and affordability measures for electric vehicles. Bus fleets would undergo an electric overhaul.

Broadband and water

The plan calls for universal - and affordable - broadband in the next decade, a need that the virtual work and school life required by the pandemic threw into stark relief.

The bill also focuses on the living conditions of Americans. It seeks to ensure that every American has access to clean water, which would be accomplished through upgrading and replacing pipes. It would also revamp electric infrastructure in a move toward a carbon-free future.

It includes a significant investment in housing, with 2 million residences set to be built or renovated. The bill also allocates money toward repairs for schools, federal buildings, childcare facilities, and veterans hospitals.

Care for older and disabled people

The plan would invest in one part of the care economy by creating more jobs caring for older people and people with disabilities and by boosting those workers' pay. Those workers are disproportionately women - with women of color highly represented - and see lower wages in general.

Innovation and R&D

The package includes incentives for domestic manufacturing, as well as clean-energy technology and other key supply-chain areas. That would be coupled with investments in the workforce and training.

Corporate tax increase

Biden's corporate tax proposal is meant to offset the cost of this package over 15 years, an administration official said. Job creation would be incentivized, and the corporate tax rate would increase to 28% from 21%. The administration would also seek to establish a global minimum tax rate of 21% for multinational corporations.

What comes next

It's unclear whether this package would have to be passed through party-line reconciliation, as Biden's $1.9 trillion stimulus package was in early March. Sen. Joe Manchin, a moderate Democrat, has signaled that he would like a bipartisan infrastructure plan, but Republicans have indicated that they won't get on board with any tax cuts.

This is the first part of a two-part infrastructure package. The second part, set to be announced in mid-April, is set to focus on education, childcare, and healthcare.

Read the original article on Business Insider