Last week, President Joe Biden announced the Administration’s plan to invest $2 trillion over eight years in the nation’s most critical infrastructure and transportation systems. His proposal, the American Jobs Plan, proposes critical investments to build world-class transportation infrastructure programs, improve drinking water infrastructure, retrofit more than two million homes and commercial buildings for energy efficiency, and deliver broadband to every American.

President Biden’s plan would invest an additional $621 billion in transportation infrastructure and resiliency. This includes:

• $115 billion to modernize state and local bridges, highways, roads, and main streets in most critical need of repair. The investment will include funding to improve air quality, limit greenhouse gas emissions, and reduce congestion;
• $80 billion to enhance grant and loan programs that support passenger and freight rail safety and efficiency, and address Amtrak’s repair backlog and improvements along existing corridors;
• $174 billion in electrification investments, including a grant and incentive program for state and local governments to build a national network of electric vehicle chargers; and
• $45 billion to redress historic inequities and build the future of transportation infrastructure, including $20 billion for a new program that will reconnect neighborhoods previously cut off by historic investments to ensure that new projects increase opportunity, advance racial equity and environmental justice, and promote affordable access.

The American Job Plan also invests roughly $111 billion in replacing lead pipes and service lines, and upgrades to local drinking water, wastewater, and stormwater systems. Further, the proposal adds $100 billion in broadband infrastructure investments intended to bring high-speed broadband infrastructure to reach every American. To learn more about these investments, see the White House’s American Job Plan Fact Sheet.

The Need and Value

For decades, there has been universal agreement that investing in public infrastructure is a critical and growing need. AWC has long advocated for significant investment that will support economic development, a strong local and state economy, and job growth.  A major stumbling block has been the proverbial “Yes, but how do we pay for it?”. In this case, the Administration has also proposed the Made in America Tax Plan which includes a hike in the corporate tax rate, among other items, which if enacted is projected to pay for the investments over 15 years.

These investments come at a time when infrastructure is failing in many cities and towns, and resources to preserve the basic systems are scarce. Mayors and councilmembers regularly let us know infrastructure investment a top priority and critical need locally. In our most recent infrastructure study (issued with our partners the Association of Washington Business, Washington State Association of Counties, and Washington Public Ports Association), we reported the state’s infrastructure needs are estimated to be more than $222 billion.

In 2019, the American Society of Civil Engineers (ASCE) gave Washington’s infrastructure an overall grade of “C”, but many infrastructure systems scored as low as a “D.”

Looking at local transportation alone, the Joint Transportation Committee of the Washington State Legislature reported in their recent City Transportation Funding Needs Assessment report that in the next ten years, cities will need to spend $20-28 billion to maintain current transportation assets. Not only this, but funding levels are less than half of what is needed, without considering accumulated deferred maintenance and preservation. The condition and connectedness of infrastructure directly relates to the ability of businesses and communities to thrive, but more than that, quality and accessible infrastructure allows communities to access public goods and services.

AWC looks forward to learning more about the President’s infrastructure proposal, how it will assist our 281 cities and towns, and what next steps Congress will take. The proposal has been labeled “historic” and it is. If enacted, it is projected to be the largest spending proposal for transportation and infrastructure since WWII.