52% of New Spending in Senate Infrastructure Bill Funds Transportation, Passage Expected to Hit Major Roadblock in the House

The Senate passed a $1.2 trillion infrastructure bill Tuesday, and transportation could receive more than half the new funding slated in the bill. However, the House leadership's desire to pass the infrastructure bill in tandem with a human rights bill could cause the infrastructure plan to hit a major roadblock in the coming weeks. 

The Senate passed the “Infrastructure, Investment, and Jobs Act” with a vote of 69 to 30, which included 19 Republicans supporting the bill, including Minority Leader Mitch McConnell. The bill includes more than $550 billion in new spending on roads, bridges, rail, ports, airports and broadband.

U.S. Agriculture Sec. Tom Vilsack touted the passage of the bill on AgriTalk Tuesday, sharing how he thinks the plan will help improve infrastructure in rural America. 

“When you build better roads, when you improve and make safe bridges, when you make sure the rail system works in an efficient way, when you improve inland waterways so lock and dam systems work in a modern way and you improve ports, it means you’re able to move soybeans, corn, whatever the commodity, more efficiently, more effectively and less expensively to market," Vilsack told AgriTalk Host Chip Flory.

"That allows you to price a product in a way that is very competitive in the world market," Vilsack adds. "When 20% to 30% of everything we grow is exported, the transportation system is critically important to our ability to maintain our edge and ag exports. We’re headed toward a record year in agricultural exports. If we don’t invest, if we continue to delay these investments as we have over the last decade, our competitors will catch up and eventually surpass us, and we’ll lose that competitive edge.”

According to the Soy Transportation Coalition, more than half of the dollars will be used for transportation funding, providing $548 billion in additional spending.  When combined with existing baseline infrastructure spending, the Coalition says the total funding for infrastructure will be approximately $944 billion over five years and $1.2 trillion over eight years.  

Of the major new funding categories included in the Senate version of the bill, the Soy Transportation Coalition says the highlights are:

Transportation Categories ($284 billion; 52% of new spending):

•     Roads, bridges, and major projects: $110 billion  (includes $40 billion for bridge repair, replacement, and rehabilitation)
•     Passenger & freight rail: $66 billion
•     Public transit: $39 billion
•     Airports: $25 billion
•     Ports and waterways: $17 billion
•     Safety: $11 billion
•     Electric vehicle infrastructure: $7.5 billion
•     Electric/zero emission buses: $5 billion
•     Electric/zero emission ferries: $2.5 billion
•     Reconnecting communities: $1 billion

Other Categories ($256 billion; 48% of new spending):

•     Electric and power infrastructure: $65 billion
•     High-speed internet: $65 billion
•     Clean drinking water: $55 billion
•     Resilience and western water infrastructure: $50 billion
•     Environmental remediation: $21 billion

"We are pleased with the passage of the Infrastructure, Investment, and Jobs Act," says Mike Steenhoek, executive director, Soy Transportation Coalition. "A number of the key provisions of the bill – specifically the $110 billion in funding for roads and bridges and the $17 billion for ports and waterways – will clearly enhance the competitiveness of U.S. agriculture."

Steenhoek points out that of the 19 Senators who voted against the Senate's infrastructure plan, the majority cited concerns over the national debt.

"This is a reasonable concern since the nation clearly has and continues to allocate scarce resources on questionable items that do not provide long-term value. We have increasingly become a spending nation versus an investing nation," says Steenhoek. "When you spend, you allocate resources today in exchange for value today. It’s an immediate gratification. In contrast, when you invest, you allocate resources today in exchange for value tomorrow and beyond. It’s delayed gratification. Constructing or enhancing roads, bridges, locks and dams, ports, etc. is clearly an example of investment, as these assets will provide value to the American people for years to come."

Steenhoek says another highlight of the bill is legislation that will create a pilot program to research the benefits of bio-based products for use in construction and other projects. The pilot program, proposed by Sen. Mike Rounds (R-SD) is one with which the American Soybean Association (ASA) and the South Dakota Soybean Association helped draft the language. The idea is to use soy-based concrete and asphalt sealants to help extend the life of roads and bridges, while also viewing the practices as environmentally-friendly.

The American Farm Bureau Federation (AFBF) and the National Cattlemen's Beef Association (NCBA) both released statements after the infrastructure bill's passing in the Senate.

NCBA called the plan a step in the right direction, saying the investments in infrastructure are critical to those in rural America.

AFBF urged the House to follow the Senate's lead by leaving tax rates and stepped-up basis unchanged as lawmakers work on solutions to fund the legislation.

What's Next? 

The Senate's infrastructure bill now heads to the House, where House Speaker Nancy Pelosi has said she won't allow a vote on the infrastructure package until a $3.5 trillion "human infrastructure" bill is also passed by the Senate. That bill includes more controversial infrastructure items, including climate change, universal preschool and affordable housing. However, Washington insiders say that will be a tough sell, as that bill is unlikely to get any Republican support as it sits today.