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Breaking Down the American Jobs Plan

April 6, 2021
President Biden outlined a $2 trillion jobs and infrastructure plan on Wednesday, March 31, that would make a significant investment in roads, bridges, telecommunications, and climate change. The American Jobs Plan includes many MichAuto priorities for workforce development, electric vehicle investment, and research and development.

However, the proposed tax increases would be counter-productive to economic recovery and competitiveness. MichAuto views this bill as a starting point for negotiations and recognizes that transformative infrastructure investment requires bipartisan consensus. In response to President Biden’s plan, MichAuto Executive Director Glenn Stevens released this statement.

“President Biden’s American Jobs Plan represents a transformative investment in Michigan and the United States’ advanced manufacturing and transportation future. MichAuto is broadly supportive of many elements in the plan, including the modernization of our roads, bridges, broadband, workforce development, and making research and development a priority. Michigan’s automotive industry is well-positioned and poised for significant growth. The proposed investment in an electric vehicle charging network and next-generation battery technology will be profoundly beneficial for the automotive industry, Michigan businesses, and workers.

The proposal to significantly raise business taxes is concerning. In the global battle to drive the future of mobility, returning to business tax rates that place American automotive and mobility firms at a global disadvantage will harm the very industry this proposal aims to bolster.

This is an opportunity for bipartisanship, and we encourage leaders from both parties to work together. MichAuto will continue to work with our congressional delegation to monitor this legislation and will continue to provide the perspective of the industry to policymakers.”

MichAuto outlines what is in the proposal below.

Public Infrastructure

  • $115 billion to revamp highways, roads, and bridges. The plan outlined 10 major and 10,000 smaller bridges in need of reconstruction.
  • There is $20 billion in the plan to improve road safety, including measures for cyclists and pedestrians.
  • The plan calls for $85 billion to modernize existing transit systems and help agencies expand to meet rider demand. This would double federal funding for public transportation.
  • The plan would invest $111 billion for clean drinking water, $45 billion of which would be used to replace the country’s lead pipes and service lines. The effort would reduce lead exposure in 400,000 schools and child-care facilities and improve the safety of drinking water.
  • The plan includes a $25 billion in airports, that would renovate terminals and expand car-free access to air travel.
  • Finally, there is $17 billion proposed for inland waterways, coastal ports, land ports of entry and ferries.
  • $80 billion to fix Amtrak’s repair backlog.

Electrifying Transportation

  • The plan provides $174 billion in grant and incentive programs for state and local governments and the private sector to build a national network of 500,000 electric-vehicle chargers by 2030.
  • The proposal would electrify 20% of the country’s yellow school bus fleet and help electrify 50,000 transit vehicles that are currently diesel powered.

Infrastructure for the Home and Local Community

  • The plan would provide for universal broadband, including to more than 35 percent of rural Americans who lack access to high-speed Internet.
  • Biden’s proposal would invest $213 billion to build and retrofit more than 2 million homes. The plan would build and rehabilitate more than 500,000 homes for low- and middle-income home buyers and invest $40 billion to improve public housing.
  • The plan includes $100 billion to upgrade and build new public schools, $12 billion in community college infrastructure, and $25 billion to upgrade child-care facilities.
  • $18 billion to modernize Department of Veterans Affairs hospitals and clinics and $10 billion to revamp federal buildings.

Worker Training and climate resiliency research and development

  • $180 billion for research and development that focuses on reducing emissions, climate resilience and boosting climate-focused research.
  • The plan would invest $50 billion in domestic semiconductor manufacturing.
  • The plan creates incentives for companies to locate local manufacturing jobs in the “industrial heartland.”
  • The plan would double the number of registered apprenticeships to more than 1 million and invest in a more inclusive science and technology workforce.

Next Steps

This proposal is only the start of a long process to pass a meaningful infrastructure package. Over the coming months, the MichAuto will continue to provide insight on what the bill means for Michigan businesses and residents.