Tweaked Infrastructure Plan Keeps Funds For Biden’s EV Chargers, Trains, Clean Buses

A bipartisan group of U.S. senators drafted the modified infrastructure bill. The modified infrastructure bill, approved by President Joe Biden by Senators, is less than the original proposal but still provides significant spending to reduce carbon emissions.

According to the White House, the Bipartisan Infrastructure Framework, unveiled Thursday afternoon, would allocate $1.2 trillion in eight-year spending over $579 billion for new spending. Although spending previously suggested to automakers to increase production of electric cars is not explicitly included in the compromise bill, $7.5 billion is available for public infrastructure to keep them running.

This proposal proposes charging stations at rural and low-income communities’ highway stops. The White House stated that the Bipartisan Infrastructure Framework was the largest investment in EV infrastructure history and will help the President reach his goal of building 500,000 EV charging stations.

The modified spending bill heavily supports clean transportation, including $49 billion to support public transit projects, $66 million for freight and passenger rail upgrades, and $7.5 billion for electric transit and school buses. $109 billion is the largest single funding source for major infrastructure projects in America, including roads, bridges, and major construction projects. $25 billion was also allocated to airport improvements.

Biden stated that $7.5 billion is available for electric buses at a press conference, but he wanted $15 billion.

Federal support for electrified transport, including commercial and government vehicles, coincides well with a wide-based transition within the auto industry to wean consumers from gasoline and diesel and move them into battery-powered cars, trucks, and buses as the climate-damaging effects of carbon exhaust grow. Global automakers such as GM, Ford and Hyundai have committed billions to add dozens of zero-emission models to their ranges. In the U.S., Tesla is increasing production capacity, and EV startups like Fisker and Rivian have raised billions of dollars (mostly by going public) to get into production as soon as possible.

Biden’s March infrastructure proposal was scrapped. This is a criticism of some Democrats. It also includes programs that specifically target climate change-related initiatives. Republicans aren’t sure how supportive the reduced program will be.

There are many funding sources for infrastructure programs, including IRS tax collection adjustments and unused unemployment insurance relief fund funds, unspent emergency Covid relief legislation funds, 5G spectrum sales, and oil sales from the U.S. Petroleum Reserve. Taxes or miscellaneous fees would not cover the plan’s costs.

The White House stated that the plan made historic and transformative investments in clean transportation infrastructure and clean water infrastructure. It also included universal broadband infrastructure, universal broadband infrastructure and clean power infrastructure.

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Adam Collins
Adam writes about technology, business and economics. With master's degree in Economics, he's presented six papers in international conferences. As a solivagant in the constant state of fernweh, curiosity is the main weapon in his arsenal.

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