At the end of March, the Biden administration unveiled a $2 trillion infrastructure package, called the American Jobs Plan (AJP). The main objectives of the AJP are to generate millions of jobs across the U.S. economy, rebuild the nation’s infrastructure, and place the United States in a position to compete with China. The AJP consists of seven key elements which are discussed further in the attached article: (1) modernizing transportation; (2) providing clean drinking water, a renewed power grid and high-speed broadband; (3) creating resilient residential and commercial properties; (4) supporting the home care industry; (5) investing in technology, advancing the manufacturing sector, and developing a skilled workforce; (6) ensuring safe and supportive work environments; and (7) implementing a new tax plan.
Congress is expected to start drafting details and debating the AJP within the next few weeks, and it could be put up for a vote by mid-to-late summer. Republicans and some business groups have come out against the plan, particularly the tax increases, claiming they would damage U.S. competitiveness and investments.
The AJP includes many provisions that affect employers, including some labor-friendly proposals, such as the Protecting the Right to Organize (PRO) Act, union neutrality, changes to wages and enforcement of health and safety regulations. The PRO Act has already passed the House but likely will face stiff opposition in the Senate. Employers will also want to follow developments regarding proposed corporate tax increases as the Act moves through the legislative process. However, the significant proposed investments in the aging national infrastructure are being seen as beneficial to corporations and which many large corporations seem to be supporting.
The proposal is the second of three components of President Biden’s overall infrastructure plan – called the Build Back Better Plan. The AJP was preceded by the American Rescue Plan (ARPA) and will eventually be followed by the American Families Plan, which is expected to be released in the coming weeks. The upcoming plan will focus on supporting the middle class and improving “social infrastructure” like universal pre-kindergarten and health care reform.
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