Last month, we reported that hopes for a federal infrastructure plan were beginning to materialize. In the time since publication, the House passed a trimmed-down version of the proposed infrastructure package—sending the bill to the Senate for additional legislative action.

Last week, the Senate revealed its $1 trillion bipartisan proposal. The proposal includes $550 billion in new spending over the next five years to address the nation’s roads, bridges, waterworks, broadband, and power grid. Among the investments in the 2,700-page proposal are:

• $110 billion for roads and bridges;
• $39 billion for public transit;
• $66 billion for rail; and
• $55 billion for water and wastewater infrastructure.

The proposal also includes significant investments for airports, ports, broadband internet, and electric vehicle charging stations. The bill authorizes and appropriates $1 billion over five years for grants to support the construction, improvement, or acquisition of “middle mile” projects—and cities are directly eligible to receive these grants.

The package is financed from assumptions of increased economic activity (new construction jobs and business growth), a “recapture” and repurposing of untapped COVID-19 relief aid, and unemployment assistance that was turned back by some states. One concern is whether ARPA direct aid to cities and towns will be recaptured (“clawed back”) to fund the package. Consistent with past debates about how to pay for a federal infrastructure package, the proposal does not include an increase in the federal gas tax.

The proposed investments echo many of our member cities’ priorities throughout the last ten years. We will continue to report on the status of the proposal as it moves through the congressional process, after the August recess. Find more information about the proposal and track its progress with National League of Cities.