Understanding the Infrastructure Bills

“No one got everything they wanted, including me. That’s compromise. That’s consensus,” said President Joe Biden, Thur., Oct. 28, as he announced the framework of a scaled-down version of his Build Back Better Plan. The new framework calls for a total outlay of $1.85 trillion versus the $3.5 trillion price tag announced earlier.

“The Build Back Better framework will set the U.S. on course to meet our climate targets, create millions of good-paying jobs, and grow our economy from the bottom up and the middle out,” the president said of the compromise bill.

The Build Back Better bill is the second of the two infrastructure bills that have been in play since August when the Senate passed the first $1.2 trillion infrastructure bill , which had passed with bipartisan support. On Friday, Nov. 5, the House finally passed that bill by 228-to-206 votes; 13 Republicans and all-but-six Democrats made up the margin of victory.

The current Build Back. Better plan will require the support of all 50 Democratic senators since no Republicans are expected to support the legislation. As outlined, the framework includes $1.75 trillion of social infrastructure funding, and an additional $100 billion in immigration spending, contingent upon an affirmative ruling by the Senate parliamentarian. This would bring the total to $1.85 trillion.

That—plus the $1.2 trillion bipartisan infrastructure legislation that passed the Senate Aug. 10, 2021, and the House on Nov. 5—would result in new spending of just over $3 trillion in support of the Biden agenda.

Update: Infrastructure Voting Finally Arrives. Some of It

Perhaps. Biden’s announcement of a framework for the Build Back Better agenda paves the way for Democrats to finally come to agreement on a social infrastructure plan. This follows a great deal of wrangling and heated intra-party discussion with Speaker Nancy Pelosi signaling on Sept. 26, 2021, that it was time for the House to vote on and pass the $1.2 trillion bipartisan infrastructure bill while negotiations continued on the social safety net legislation.

Here is what is in the bill that just passed, what’s in the revised Build Back Better agenda, and what the original Build Back Better bill included.

What’s in the $1.2 Trillion Bipartisan Bill

The 2,702-page bipartisan bill, which has not changed, contains just $550 billion in new spending. The $1.2 trillion figure comes from including additional funding normally allocated each year for highways and other infrastructure projects. The new spending consists of:

$110 billion for roads and bridges. In addition to construction and repair, the funding also helps pay for transportation research at universities, funding for Puerto Rico’s highways, and “congestion relief” in American cities.

$66 billion for railroads. Funding includes upgrades and maintenance of America’s passenger rail system and freight rail safety, but nothing for high-speed rail.

$65 billion for the power grid. The bill would fund updates to power lines and cables, as well as provide money to prevent hacking of the power grid. Clean energy funding is also included.

$65 billion for broadband. Includes funding to expand broadband in rural areas and in low-income communities. Approximately $14 billion of the total would help reduce Internet bills for low-income citizens.

$55 billion for water infrastructure. This funding includes $15 billion for lead pipe replacement, $10 billion for chemical cleanup, and money to provide clean drinking water in tribal communities.

$47 billion for cybersecurity and climate change. The Resilience Fund will protect infrastructure from cybersecurity attacks and address flooding, wildfires, coastal erosion, and droughts along with other extreme weather events.

$39 billion for public transit. Funding here provides for upgrades to public transit systems nationwide. The allocation also includes money to create new bus routes and help make public transit more accessible to seniors and disabled Americans.

$25 billion for airports. This allocation provides funding for major upgrades and expansions at U.S. airports. Air traffic control towers and systems would receive $5 billion of the total for upgrades.

$21 billion for the environment. These monies would be used to clean up superfund and brownfield sites, abandoned mines, and old oil and gas wells.

$17 billion 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.

$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.

$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 bill for electric vehicle charging stations. The Biden administration asked for this funding to build significantly more charging stations for electric vehicles across the nation.

$7.5 billion for electric school buses. With an emphasis on bus fleet replacement in low-income, rural, and tribal communities, this funding is expected to allow those communities to convert to zero-emission buses.

What’s in—and Not in—the $1.85 Trillion Scaled-Down Democratic Proposal

The outline below shows what has survived negotiations (so far) and what has not.

What’s In

$400 billion for childcare and universal preschool. The plan is designed to save most American families more than half of their spending on childcare by providing two years of free preschool for every 3- and 4-year-old in America and additional funding for childcare.

$150 billion for home care. This funding expands home care for seniors and the disabled.

$200 billion for Child Tax Credit and Earned Income Credit. The proposal extends the expanded Child Tax Credit for one year and provides additional funds to extend the expanded Earned Income Tax Credit.

$150 billion for home care. This would expand access to high-quality home care for older Americans and people with disabilities.

$555 billion for clean energy and climate. The plan proposes cutting greenhouse gas pollution by over a gigaton in 2030, reducing consumer energy costs, helping to create more clean air and water, and creating hundreds of thousands of jobs.

$130 billion in ACA credits. This money will be used to expand affordable healthcare coverage, reduce premiums for more than 9 million Americans, and deliver healthcare to uninsured people in states that are not enrolled in expanded Medicaid coverage.

$35 billion Medicare hearing coverage. While dental and vision coverage did not make the cut, Medicare recipients will have coverage for hearing aids and hearing tests.

$150 billion for housing. The plan invests in affordable housing, including construction and rehabilitation of homes, as well as investments in rental assistance and housing vouchers.

$40 billion higher ed and workforce. The legislation will increase Pell grants and provide post-high school education opportunities including through apprenticeship programs for underserved communities.

$90 billion for equity and other investments. Spending in this area will be designed to achieve equity through investments in maternal health, community violence interventions, and nutrition according to the Whitehouse.

$100 billion for immigration. This is part of the framework, but also separate, since it requires a ruling by the Senate parliamentarian. This would constitute an investment to reform the immigration system, reduce backlogs, expand legal representation, and make border processing more efficient and humane.

Corporate alternative minimum tax. A 15% minimum tax on companies whose financial statements show at least $1 billion in profit—proposed by Senators Elizabeth Warren (D., Mass.), Angus King (I., Maine) and Ron Wyden (D., Ore.)—has been added to the current Build Back Better legislation to help fund it.

Agreement to lower prescription drugs costs. The compromise plan would reduce the price of insulin and halt drug price hikes above inflation, which affects all Americans. Seniors in particular would benefit from Medicare’s ability to negotiate prescription drug prices in its Part B and Part D program. In addition, the compromise limits Medicare out-of-pocket copays and caps drug costs for Medicare recipients at $2,000 per year.

Paid family leave. Democrats initially wanted 12 weeks of guaranteed paid family and medical leave, then scaled it back to four weeks. Then, paid leave was removed from the bill—until Nov. 3, when House Speaker Nancy Pelosi announced, in a Dear Colleague letter, that it had been put back in.

What’s Out

Medicare dental and vision benefits. Although these became victims of the budgeting axe, hearing aids and testing survived the cut.

Free community college. Expansion of Pell grants and apprenticeship training remains, but free community college was taken out.

Billionaires income tax. This funding plan, which would have taxed the unrealized gains of certain assets of around 700 of the richest taxpayers in the country and helped fund the legislation, was removed.

A Quick Look at the Original $3.5 Trillion Bill

The original Democratic FY2022 Budget Resolution Agreement Framework memorandum was designed to enact President Biden’s Build Back Better agenda as first framed. This proposal, often referred to as an investment in human infrastructure, was far-reaching and ambitious. It listed the following amounts and areas to be addressed:

$135 billion for the Committee on Agriculture, Nutrition, and Forestry. Funding to be used to address forest fires, reduce carbon emissions, and address drought concerns.

$332 billion for the Banking Committee. Including investments in public housing, the Housing Trust Fund, housing affordability, and equity and community land trusts.

$198 billion for the Energy and Natural Resources Committee. This would develop clean energy.

$67 billion for the Environment and Public Works Committee. These monies would fund low-income solar and other climate-friendly technologies.

$1.8 trillion for the Finance Committee. This part of the bill is for investments in working families, the elderly, and the environment. It includes a tax cut for Americans making less than $400,000 a year, lowering the price of prescription drugs and ensuring that wealthy and large corporations pay their fair share of taxes.

$726 billion for the Health, Labor, Education, and Pensions Committee. This addresses universal pre-K for 3- and 4-year-olds, childcare for working families, tuition-free community college, funding for historically black colleges and universities, and an expansion of the Pell Grant for higher education.

$37 billion for the Homeland Security and Governmental Affairs Committee. This would electrify the federal vehicle fleet, electrify and rehab federal buildings, improve cybersecurity infrastructure, reinforce border management, invest in green-materials procurement, and invest in resilience. 

$107 billion for the Judiciary Committee. These funds address establishing “lawful permanent status for qualified immigrants.”

$20.5 billion for the Indian Affairs Committee. This addresses Native American health programs and facilities, education programs and facilities, housing programs, energy programs, resilience and climate programs, BIA programs and facilities, Native language programs, and the Native Civilian Climate Corps.

$25 billion for the Small Business Committee. This provides for small business access to credit, investment, and markets.

$18 billion for the Veterans Affairs Committee. This funds upgrades to veteran facilities.

$83 billion for the Commerce Committee. This goes to investments in technology, transportation, research, manufacturing, and economic development. It provides funding for coastal resiliency and healthy oceans investments, including the National Oceans and Coastal Security Fund and the National Science Foundation research and technology directorate.

A Possible Timeline

Though both Democrats and Republicans have praised the bipartisan infrastructure bill, there remain significant challenges to be addressed before the money starts flowing for either bill.

Aug. 10, 2021—Immediately after passing the bipartisan bill, the Senate voted 50 to 49 to begin debate on the $3.5 trillion infrastructure bill.

Aug. 11, 2021—Senate Democrats passed the $3.5 trillion budget resolution 50 to 49. Democrats in the House and Senate now begin the time-consuming task of drafting a final product.

Aug. 23, 2021—House Majority Leader Steny Hoyer sent a “Dear Colleague” letter to House members Aug. 10 stating that the House would “return to session the evening of Aug. 23, 2021” to consider the anticipated Senate budget resolution (the $3.5 trillion bill). Hoyer said the House would remain in session “until our business for the week is concluded.”

Aug. 24, 2021—The House of Representatives did pass the budget resolution, which also instructs House committees to write the $3.5 trillion legislation. To please Democratic centrists eager to pass the bipartisan $1.2 trillion bill, the resolution included a nonbinding commitment to vote on that infrastructure bill by Sept. 27. In a statement, House Speaker, Nancy Pelosi said, “In consultation with the Chair of the Transportation and Infrastructure Committee, I am committing to pass the bipartisan infrastructure bill by September 27. I do so with a commitment to rally House Democratic support for its passage.”

Sept. 15, 2021—The memorandum outlining the $3.5 trillion plan recommended that congressional committees “submit legislation to the Committee on the Budget by September 15 to carry out this section, though this date is not binding.” The markup was completed on time and advanced on Sept. 15, 2021.

Sept. 27, 2021—The original nonbinding deadline to vote on the $1.2 trillion infrastructure package became the deadline to begin debate on the bill with a new voting deadline of Sept. 30, 2021, vis-a-vis Speaker Pelosi’s “Dear Colleague” letter referenced above.

Sept. 30, 2021—The new deadline to vote on the bipartisan infrastructure bill saw the passage of H.R. 5305 to extend funding and suspend the debt limit through Dec. 3, 2021, but no infrastructure bill. Instead, infrastructure was delayed so progressive and moderate Democrats could work out differences, especially on the $3.5 trillion Build Back Better bill.

Oct. 24, 2021—House Speaker, Nancy Pelosi, announced on CNN that Democrats planned to reach “agreement” on the Build Back Better agenda and a vote on the bipartisan infrastructure bill sometime in the next week.

Oct. 28, 2021-President Biden revealed his framework for a scaled-down Build Back Better agenda before leaving for Europe and the G20 summit. Biden’s move is designed to bring progressive Democrats on board to vote for the bipartisan infrastructure bill ahead of passage of the yet-to-be-formally-crafted Build Back Better legislation.

Oct. 31, 2021—In her remarks on CNN, Pelosi said the bipartisan infrastructure plan must be passed by Oct. 31, when an extension for transportation funding programs expires. This was the new deadline for at least part of Biden’s infrastructure. However, as of Nov. 4, neither infrastructure bill had been passed.

November 5, 2021— The House passes the $1.2 trillion bipartisan package that already passed the Senate, allowing it to go to the president’s desk for signature.

Week of Nov. 15—Congressional Budget Office costing should arrive, possibly allowing a vote on the Build Back Better bill. If it passes, it would go back to the Senate. Final changes to this bill could still happen.

Infrastructure Prognosis

Speaker Pelosi’s resolve to reach agreement on Build Back Better and pass the smaller bipartisan bill before the end of October signaled progress on both bills among Democrats. According to Pelosi, 90% of the social infrastructure bill has been agreed to. She did not specify an amount or provide specifics on which items remain and which, if any, have been taken out.

By indicating that the smaller bipartisan infrastructure bill would pass first, Pelosi and Democrats have apparently overcome the “both bills must pass simultaneously” hurdle and that is what ultimately happened. This was reinforced by remarks made by California Congressman, Ro Khanna, on Fox News Sunday recently. “Well the details matter,” Khanna said. “My view is that the president’s word saying, ‘I have the commitment of 50 senators and those 50 senators are going to vote for this bill, and here are the details,’ that that’s good enough.”

The president’s involvement in presenting a somewhat detailed plan for Build Back Better provides some reason for optimism on the part of Democrats who are eager to pass legislation they can hang their hats on prior to the mid-term elections in 2022. Republican victories in a number of Nov. 2 election races have been tied by some pundits to the Democrats’ lack of success in passing these bills.

Will the Build Back Better bill ultimately pass? Stay tuned.