Washington, D.C. (December 6, 2021) - The Infrastructure Investment and Jobs Act, signed into law on November 15, 2021, provides federal funding for improving basic infrastructure such as highways, roads, bridges, airports, and rail. The bill also includes considerable funding for upgrading electric and water delivery systems, expanding broadband and electric vehicle infrastructure, and addressing greenhouse gas emissions, climate resiliency, environmental justice, and workforce issues. Other key features of the Act include measures aimed at promoting project permitting efficiencies and research funding for studies ranging from wildlife corridors to ergonomic seats for commercial drivers, and "Build America, Buy America" provisions for infrastructure materials.

But the new law is just the first of a two-part plan. Part two, the Budget Reconciliation legislative package, also known as the "Build Back Better Act," was passed by the U. S. House of Representatives and is anticipated to become law (after negotiations with the Senate) by the end of 2021. That bill proposes an additional $2 trillion in federal spending for new projects and programs, including significant tax incentives for renewable energy and changes to federal personal and corporate tax policies. In addition, Congress will soon pass the Fiscal Year 2022 National Defense Authorization Act, which also includes provisions of keen interest to contractors, consultants, and developers. Businesses should closely examine the final provisions included in all three of these far-ranging packages to capture business opportunities, including grants, loans, and tax incentives.

Key components in the first bill, the Infrastructure Investment and Jobs Act, include:

  • Funding for planning and construction of roads, bridges, public transportation, ports, and freight facilities
  • Project delivery improvements, permit streamlining measures
  • Electric grid connectivity, upgrade, and resiliency funding
  • Supply chain, rare earth, and critical minerals support
  • Broadband and EV infrastructure deployment in rural and low-income communities
  • National Highway Freight Network establishment
  • Highway resiliency, including use of natural structures
  • Build America, Buy America requirements for federally-aided projects
  • Local hiring preference, advancement of disadvantaged businesses

Understanding these new funding mechanisms and associated Buy America provisions and waivers can be complicated. Businesses should look closely at how funds will be accessed and distributed and how new standards for acquisition of materials may impact projects.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.