The legislation continues to make its way through Capitol Hill on its towards final approval. Will it pass and what exactly is in the bill that will impact the logistics industry?
While the package does fall short of the $2.25 trillion proposal that was originally proposed back in March of 2020, this infrastructure bill is still significant. It calls for new federal spending of about $550 billion dedicated to repairing and renewing existing transportation infrastructure. In fact, this new spending is roughly equivalent to the cost of the Interstate Highway System, after adjusting for inflation.
Of the $550 billion, over one fifth of the federal spending in this bill will actually go to all the traditional infrastructure sectors. Many believe this funding to be long overdue. A World Economic Forum report in 2019 stated that the U.S. was not even in the top 10 for transportation infrastructure. According to the White House, “20% of major highways and roads plus 45,000 bridges are considered to be in poor condition.”
Long Needed Support for Roads and Bridges
The bill states that $110 billion will be allocated for roads, bridges, and major infrastructure projects. Contained in this portion of the bill is $40 billion designated for repairing and replacing over 45,000 bridges across the country that are in poor condition. The White House says “it would be the single, largest dedicated bridge investment since the construction of the interstate highway system, which started in the 1950s.” Of the $110 billion, $16 billion has been set aside for “major projects that would be too large or complex for traditional funding programs.”
Safety has long been a concern in the realm of transportation, and $11 billion will be assigned to increasing transportation safety. Such measures include a new program designed to help states and localities reduce crashes and fatalities, according to the White House.
After initially being passed by the Senate, the bill must next be approved by the House before it can finally receive final approval. While there has been much criticism of the bill, the fact that it has come this far shows the overall appeal of it by many. But there are many who oppose the bill so it is unclear if there will be enough votes for it to actually pass.
As your partner in freight, we will continue to watch its progress and will always keep you informed of any updates. Our entire team is dedicated to providing you with personal, hometown service you can count on, no matter what is going on in the great big world.