Infrastructure Bill: Don't Fall For The Media Hype

President Biden and his media chorus are singing the praises of the Infrastructure Bill, calling it a "monumental step forward for the nation."  Although publicly flogged as a massive investment in roads and bridges, the $1.2 trillion package designates 9.1% of the funding to surface infrastructure projects.

Speaker Nancy Pelosi's cheoragodhy for the bill in the House floundered over months of often bitter Democrat in-fighting until a gaggle of Republicans pirouetted and joined deadlocked Democrats, who were unable to muster enough support from their splintered party to waltz to final approval.   

Thirteen of 214 House Republicans gave the legislation a thumbs up. In the Senate, 19 GOP members, including leader Mitch McConnell, raised their hands in support of the massive spending bill, while 31 colleagues demurred.  GOP renegades will be rewarded with pet projects for their states.  

The 2,702 page bill, weighing a hefty 28 pounds of paper, parcels out $110 billion for roads and bridges.  But don't be fooled.  Included in those billions of dollars are millions in funds for transportation research at universities and construction of highways in Puerto Rico. 

For perspective, Texas spent $15.3 billion in 2020 on just highways.  In the next 20 years, the state's Department of Transportation estimates it will require another $239.2 billion to keep up with growth and development. That $110 billion, divided among 50 states, is political window dressing.    

That $1.2 trillion number also is misleading.  Even Democrats concede the bill contains about $550 billion in new spending.  The remainder, nearly $700 billion, funds  existing infrastructure laws that are bundled into the legislation, such as reauthorization of the Highway and Mass Transit bill.

Here is a summary of new spending, focusing on the big ticket items:

• $66 billion for railroads.  The spending covers upgrades and maintenances of the Amtrak passenger rail system and funds for freight rail safety.  However, there is no money for high-speed rail.
• $65 billion for the power grid. The legislation provides for updating power lines and cables as well as money for cyber security to prevent hacking of the grid.  Clean energy funding is also included in the bill.
• $65 billion for broadband. The bill funds expansion of broadband service in rural areas and low-income communities.  About $14 billion would provide subsidies to low-income households to cover the cost of internet service.
• $55 billion for water projects. A large chunk of the funding, $15 billion, will be used for lead pipe replacement.  Native American tribal communities will get billions to provide clean drinking water in their communities.  
• $47 billion for climate change and cyber security. Included in this spending is money to address flooding, wild fires, coastal erosion, droughts and other extreme weather events.
• $39 billion for public transit. The bill allocates money to provide for upgrades to public transit systems nationwide.  In addition, there are funds to help make public transit more accessible for seniors and disabled Americans.
• $25 billion for airports.  The funding for air traffic control towers and systems is just $5 billion, far short of what experts estimate is required to update critical facilities.  The remainder of the funds are for upgrades and expansion to airports.
• $21 billion for the environment. These funds are designated to clean up superfund and so-called brownfield sites, abandoned mines and old oil and gas wells.
• $17 billion for ports. At a time when the administration is grappling with the supply chain disruption at U.S. ports, the funding is a drop in the bucket.  About one-half of the funds would be sent to the Army Corps of Engineers for port infrastructure.  Additional monies would go to the Coast Guard, ferry terminals and the reduction of truck emissions at ports.
• $7.6 billion for electric vehicle charging stations and $7.5 billion for electric school buses. Those charging stations will mostly benefit upper income earners who can afford pricey electric cars. The school bus project targets bus fleet replacement in low-income, rural and tribal communities.

Buried in Section 13002 is a proposal for a pilot initiative for a national motor vehicle per-mile user fee.The stated purpose is to test the feasibility of monitoring how much each car travels, a harbinger of Democrats plan to levy a tax on every mile a person drives.  That should worry Americans. 

While Democrats are taking victory laps, the funding doesn't address America's pressing problems: the rising cost of gasoline at the pump; spiraling food prices; chaos at the southern border; and empty shelves at virtually every store that sells groceries, home goods, electronics, clothes and more.

Wall Street may be popping champagne corks, but average Americans on Main Street are wondering how this helps their economic situation, when inflationary prices are eroding the purchasing power of every dollar.  Democrats claim this spending will actually reduce inflation. Insert laughter here.

Despite the bill's tepid public reception, Democrats are agog.  The Department of Transportation and other agencies will be responsible for divvying up a chunk of the billions assigned to the bill's priorities. Of course, this is by design so the administration can base spending decisions on politics.  

With Democrats controlling all the levers of government, the Blue States will be rewarded along with the districts of party members who are facing reelection in next year's mid-terms.  That 's just the way Washington works, regardless of the party in power. Incomprehensibly, voters don't seem to care.   

On the heels of infrastructure, Congress is wrangling over the Build Back Better Act, which contemplates almost $2 trillion in spending. The legislation has allegedly been pared from the $3.5 trillion price tag announced earlier.  A trillion here. A trillion later.  Soon it becomes real money.

While the Build Back Better Act lurches toward approval, the administration's runaway spending continues. Millions of dollars in more stimulus checks will be dispatched this month.  Eligible families will be sent checks of $300 for every child under six and up to $250 for each kid aged six-to-17.  

This gusher of spending worries few Americans because too many believe the government has an inexhaustible supply of money. Just tax those 614 American billionaires and we can relax comfortably waiting for our next government check. No one seemingly worries about deficits or the national debt.  

At some point the government will run out of people to tax to fund this excess.  It will be a rude awakening for a nation addicted to checks from their government's printing presses.  Unless spending is reigned in, an inflationary shock wave will rattle the country, hurting the most vulnerable Americans.