President Biden today will outline his Administration's massive new infrastructure package in a speech in Pittsburgh, Pennsylvania. Although additional details will come out in the coming days, the White House has released a 25 page fact sheet on the proposal's substance.
The proposal will be an eight-year, $2 trillion-plus spending bill with a 15-year mechanism to pay for it. This $2 trillion figure does not include approximately $400 billion in clean energy credits on top of the new spending.
This 15-year projection mechanism is unusual; legislation is generally "scored" (i.e., its cost is generally calculated) using a 10-year window. The Biden Administration seems to want to assume tax revenue through a longer time horizon to minimize its impact on the deficit. Nevertheless, this scenario requires 15 years of higher taxes on corporations to pay for eight years of spending.
The spending will go toward both physical infrastructure (highways, mass transit and EV charging systems) as well as upgrades to water pipes, the electric grid, broadband, and veterans' hospitals.