The Infrastructure Investment and Jobs Act is a historic endeavor, in size and scope. The infrastructure package represents trillions of dollars of investment in America’s systems and structures. With it comes the promise of immense opportunity and job creation. Read on to learn more about the contents of this massive piece of federal legislation.
Traditional Infrastructure Elements
When we think of infrastructure, we tend to think of basic physical and organizational structures and facilities. This commonly refers to projects like buildings, roadways and bridges, and transportation facilities. In the world of government contractors, much of the construction work that is associated with federal infrastructure efforts falls under the Davis-Bacon Act. The infrastructure package, predictably, includes multiple investments in traditional elements of infrastructure and construction.
The legislation calls for investing $110 billion for roads, bridges, and other major infrastructure projects. $40 billion is designated for bridge repair, replacement, and rehabilitation, the largest dedicated bridge investment in the United States since the 1950s. The package also includes $11 billion for transportation safety, including programs to help localities reduce crashes and fatalities. Finally, $1 billion will be put towards reconnecting communities that were divided by highways. This will fund planning, design, demolition, and reconstruction of street grids, parks, and other pieces of infrastructure.
The infrastructure package also provides $39 billion to modernize public transit. The goal of this expansion is to repair and upgrade the existing system, make stations more accessible, expand them to meet rider demand, and bring transit services to new communities. The funding package also includes $66 billion in passenger and freight rail, ultimately seeking to eliminate Amtrack’s maintenance backlog and bring rail services to areas outside the Northeast and mid-Atlantic regions.
Other large construction components of Biden’s infrastructure package include $17 billion in funds to address repair and maintenance backlogs for American ports and $25 billion to airports.
The Broadened Approach of the Infrastructure Package
As previously mentioned, federal infrastructure efforts traditionally focus on construction efforts of large structures like roadways and buildings. In Biden’s infrastructure package, however, the definition of infrastructure has been historically broadened to include distinctly modern infrastructure investments in areas such as broadband internet, environmental remedies, and promoting low-carbon technologies and renewable energies.
The infrastructure package provides a $65 billion investment in improving the national broadband infrastructure. The legislation is seeking to lower the price that households pay for internet service, create price transparency amongst competing services, and boost competition in areas where existing providers aren’t providing adequate service.
The infrastructure package includes several progressive efforts in renewable energy and environmental concerns. The legislation provides $7.5 billion for zero and low-emission buses and ferries. Another $7.5 billion will go to building a nationwide network of electric vehicle chargers. Finally, the package is designating $21 billion to clean up brownfield sites, reclaim abandoned mine land, and cap orphaned gas wells.
Furthering the environmental interests of Biden’s infrastructure package, the agreement invests $65 billion in rebuilding the electrical grid, including thousands of miles of new power lines and expanded renewable energy efforts. In terms of upgrading water infrastructure, the legislation provides $55 billion. This funding will replace lead service lines and pipes, increasing community access to clean drinking water. An additional $50 billion will go toward making infrastructure systems more resilient, protecting them from drought, floods, and cyberattacks. Airports, ports, and waterways will also be included in these efforts to reduce congestion and emissions and promote green energy efforts.
Helping Contractors Plan for Infrastructure Package Opportunities
With the Infrastructure Investment and Jobs Act signed into law, a tremendous opportunity for growth has arrived for Davis-Bacon Act contractors. A well thought out contractors’ plan can provide the necessary competitive edge to seize these opportunities. We’re here with a choice benefit solution, designed to help contractors put forth their best possible bid.
Boon offers 35+ years of expertise in creating unique, flexible fringe benefit solutions for government contractors. Our products and services include major medical, hour bank, retirement, administrative services only, and more. What we offer our clients is an expert in their corner. We provide a consultative approach to fringe benefits and a deeper understanding of the government contracting space. A solution can only be called a solution if it works, that’s why we work hard to introduce our clients to the right benefit solution.
Keep Up with Boon!
Have you heard of our bi-monthly newsletter? It’s your source for the latest in industry updates and all things Boon! Sign-up and get the highlights, direct to your inbox.
Never miss a blog post and also keep up with Boon on Facebook, Twitter, and LinkedIn.