President Joe Biden has introduced the American Jobs Plan – a sweeping investment that aims to create millions of good-paying jobs, rebuild the country’s infrastructure and position the U.S. to compete in the evolving global economy.
Public domestic investment as a share of the economy has fallen by more than 40% since the 1960s. The U.S. is considered the wealthiest country in the world, yet it ranks 13th when it comes to the overall quality of its infrastructure. After decades of disinvestment, roads, bridges and water systems are crumbling. The electric grid is vulnerable to catastrophic outages.
Biden’s American Jobs Plan will invest about 1% of GDP per year over eight years to upgrade the nation’s infrastructure, revitalize manufacturing, invest in basic research and science, shore up supply chains and solidify care infrastructure. These are investments that economists agree will provide Americans with good jobs and will pay off for future generations by leaving the country more competitive and communities stronger. In total, the plan will invest about $2 trillion this decade. If passed alongside Biden’s Made in America corporate tax plan, it would be potentially paid for within the next 15 years and reduce deficits in the years after.
Biden’s plan aims to unify and mobilize the country to meet the climate crisis. The plan targets 40% of the benefits of climate and clean infrastructure investments to disadvantaged communities. Specifically, Biden’s plan aims to:
- Create good jobs electrifying vehicles. U.S. market share of plug-in electric vehicle (EV) sales is only one-third the size of the Chinese EV market. Biden is proposing a $174 billion investment in the EV market. His plan will enable automakers to spur domestic supply chains from raw materials to parts, retool factories to compete globally and support U.S. workers to make batteries and EVs. It will give consumers point-of-sale rebates and tax incentives to buy U.S.-made EVs while ensuring that these vehicles are affordable for all families and manufactured in the country. It would establish grant and incentive programs for state and local governments and the private sector to build a national network of 500,000 EV chargers by 2030 while promoting strong labor, training and installation standards. His plan also will replace 50,000 diesel transit vehicles and electrify at least 20% of our yellow school bus fleet through a new Clean Buses for Kids Program at the Environmental Protection Agency. The administration says these investments will set the country on a path to 100% clean buses while ensuring that the U.S. workforce is trained to operate and maintain a 21st-century infrastructure. Finally, it will utilize the tools of federal procurement to electrify the federal fleet, including the U.S. Postal Service.
- Establish the U.S. in climate science, innovation and R&D. The plan calls on Congress to invest $35 billion in the full range of solutions needed to achieve technology breakthroughs that address the climate crisis and position the U.S. as a global player in clean energy technology and clean energy jobs. This includes launching ARPA-C to develop new methods for reducing emissions and building climate resilience, as well as expanding across-the-board funding for climate research. In addition to a $5 billion increase in funding for other climate-focused research, Biden’s plan will invest $15 billion in demonstration projects for climate R&D priorities, including utility-scale energy storage, carbon capture and storage, hydrogen, floating offshore wind, biofuel/bioproducts, quantum computing and EVs.
- Jumpstart clean energy manufacturing through federal procurement. The federal government spends more than a half-a-trillion dollars buying goods and services each year. As a result, it has the ability to be a first-mover in markets. To meet the Biden’s goals of achieving net-zero emissions by 2050, the U.S. will need more EVs, charging ports and electric heat pumps for residential heating and commercial buildings.
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