In a rare moment of unity, the US Senate passed the flagship infrastructure bill, which will allocate more than $1 trillion towards upgrading the country’s deteriorating transportation systems.
On Tuesday, the US Senate voted 69-30 in favour of the Infrastructure Investment & Jobs Act, in a rare act of bipartisanship during a time of heightened tensions between Democrats and Republicans. The bill is now slated for the House of Representatives where it will be up for debate, but only if the Senate also passes a separate $3.5 trillion budget bill aimed at alleviating poverty and climate change, as per House Speaker Nancy Pelosi’s request.
As part of the infrastructure bill, the federal government will spend $550 billion over a span of 5 years to upgrade major roads, bridges, and tunnels, as well as rail networks and airports. The spending measures will also focus on investing in Americans’ access to clean drinking water and broadband internet. In calculations published last week, the Congressional Budget Office forecasts that the new spending measures will increase the national deficit by $256 billion over the next ten years.
However, the infrastructure bill’s masterminds, Republican senator Rob Portman and Democratic senator Kyrsten Sinema, insist that the new spending plans will be fully paid for with a series of new revenue sources. This will include the reallocation of a remaining $200 billion in pandemic emergency money, dipping into unused jobless funds, as well as delaying Medicare rebates.
Also included in the bill is a controversial measure that would require all cryptocurrency transactions to be reported to the Internal Revenue Service. The plan has infuriated investors and crypto bulls alike, who say it will create unnecessary burdens on coin miners and software developers. The plan is forecast to bring in nearly $30 billion in new funds for the Treasury.
Information for this briefing was found via Reuters and the CBO. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
