On June 23, a bipartisan group of senators announced an agreement on a $1.2 trillion infrastructure framework with the White House. The framework—found here —includes $579 billion in new spending to rebuild America’s roads and bridges, improve public transit systems, invest in broadband infrastructure, and upgrade our airports. While this plan does appear to have bipartisan support, the path forward remains unclear, as Speaker Pelosi announced that she would not move similar legislation in the House until the Senate passed both the bipartisan infrastructure bill and partisan reconciliation infrastructure bill. In addition, there are a significant amount of details that have yet to be determined.

AGC Warns of Negative Impacts on Project Delivery and Environment

Legislation would invest $40 billion in the clean water state revolving fund

On June 16, a bipartisan group of senators—10 Democrats and 10 Republicans— announced an agreement on a $1.2 trillion infrastructure package. The two-page plan includes $579 billion in new spending (on top of reauthorized transportation programs) to rebuild America’s roads and bridges, improve public transit systems, invest in broadband infrastructure, and upgrade our airports. Of that total, $110 billion would be dedicated for roads, bridges, and major projects. The group states the plan would be paid for in part by repurposing unspent COVID relief funds, indexing the gas tax to inflation, implementing a fee on electric vehicles, and adjusting customs user fees. Several of these pay-fors have been rejected in the past by the Biden Administration in talks with Senate Republicans led by Senator Shelley Moore Capito (R-W.Va.).

On June 10, the House Transportation and Infrastructure Committee approved legislation to reauthorize federal-aid highway and transit programs, on a mostly partly line vote. This five-year, $547 billon bill will now go to the full House for a floor vote at a yet to be determined date. An AGC analysis of this legislation as passed by committee may be found here. While AGC is supportive of the investment levels in this legislation, the association has significant concerns with the bill’s significant restrictions to building new highways and expanding highway lanes and lack of environmental review and permit streamlining initiatives, among other things.

Expands Renewable Energy & EV Tax Credits; Attaches Labor Requirements

Other Senate Committees Must Act on Transit, Rail Programs

On May 20, the Federal Highway Administration (FHWA) released a new initiative to permit, on an experimental basis, contractors to utilize geographic, economic, or other hiring preferences on federal-aid highway projects. This “local hire” initiative will be carried out as a pilot program for a period of 4 years (unless extended) under FHWA’s existing experimental contracting authority. AGC is broadly opposed to local hire preference policies. After yesterday’s pilot program release, AGC CEO Steve Sandherr stated, in part: “[T]he problem with local hire programs, however, is that they solve the symptom and not the problem...too many communities have defunded their career and technical education programs and as a result there are often too few local workers with any interest in construction careers or basic skills that would make them qualified to be hired.”

U.S. Treasury Outlines How States Can Spend $350 Billion State & Local Government COVID-Relief

Would Provide $35 Billion in the Nation’s Water Infrastructure