Spending in the American Jobs Plan vs. the 2018 Senate Infrastructure Plan
Last month, President Joe Biden unveiled the second part of his "Build Back Better" agenda – the American Jobs Plan – focused on upgrading and repairing America's physical infrastructure; investing in manufacturing, research and development; and expanding long-term health care services.
The plan has approximately $2.65 trillion of new costs concentrated over the next eight years, including roughly $1.7 trillion of infrastructure and climate-related spending and tax credits (this uses a relatively broad definition, and other estimates could differ). In nominal dollars, this is nearly twice as large as the plan proposed by Senate Democrats in 2018.
Proposed Spending in the American Jobs Plan vs. the 2018 Senate Infrastructure Plan
| Policy | 2018 Plan | American Jobs Plan | % Difference |
|---|---|---|---|
| Repair roads and bridges | $140 billion | $135 billion | -4% |
| Electric vehicles | $3 billion | $174 billion | +5700% |
| Modernize water and sewer systems | $115 billion | $111 billion | -3% |
| Repair and improve public transportation | $115 billion | $85 billion | -26% |
| Improve energy grid | $80 billion | $100 billion | +515% |
| Energy tax credits | $330 billion | ||
| Other green power research and investment | $62 billion | ||
| Neighborhood revitalization, lead remediation, and affordable housing | $62 billion | $261 billion | +321% |
| School construction and modernization | $50 billion | $87 billion | +74% |
| Modernize rail infrastructure | $50 billion | $80 billion | +60% |
| Improve airports and airspace | $40 billion | $25 billion | -38% |
| Provide universal high-speed internet | $40 billion | $100 billion | +150% |
| Modernize ports and waterways | $30 billion | $17 billion | -43% |
| Build more resilient communities | $25 billion | $50 billion | +100% |
| Address VA construction backlog and other infrastructure | $10 billion | $28 billion | +180% |
| Other | $122 billion | $55 billion | N/A |
| Total | $882 billion | $1,700 billion | +93% |
| Highway Trust Fund funding | $140 billion | N/A | N/A |
| Total Spending plus Highway Funding | $1,022 billion | $1,700 billion | +80% |
Compared to the 2018 Senate proposal, the American Jobs Plan appears to be much more heavily focused on climate change, and spends substantially more in a number of areas including electric vehicles and charging infrastructure; energy grid improvements, energy tax credits, and other forms of green power research and development; neighborhood revitalization, lead remediation, and affordable housing; broadband internet; building more resilient communities; and addressing the VA construction backlog. The American Jobs Plan also appears to include substantially more in tax credits and subsidies than the 2018 proposal.
Unlike the 2018 proposal, however, the American Jobs Plan does not include funding for the Highway Trust Fund, which now faces a 10-year shortfall of nearly $200 billion.
In terms of offsets, the American Jobs Plan includes roughly $1.75 trillion of revenue from corporate tax increases, whereas the 2018 plan included just over $1 trillion – $359 billion from corporations and the rest from higher income households.
