Update on 2022 Bipartisan Infrastructure Law Projects Underway

Learn About the New Infrastructure Bill Projects That Are in Progress

Nearly one year ago, President Biden signed the Infrastructure Investment and Jobs Act of 2021, commonly known as the “Bipartisan Infrastructure Bill” into effect. Of the total investment of $1.2 trillion, $550 billion is going to modernizing Internet connectivity, drinking water infrastructure, and transportation infrastructure. To date, the Bipartisan Infrastructure Law has been used to fund over 5,000 projects with roughly $113 billion of the investment funds. Some of those projects include:

$42.45 billion to extend broadband internet throughout the U.S.
$5 billion for electric vehicle charging stations

The Infrastructure Investment and Jobs Act provides for spending on much needed traditional infrastructure improvements, like roadways, highways, road bridges, airports, and inland waterways. The legislation also allocates funding for modern infrastructure needs, including electric vehicle charging stations, cybersecurity initiatives, high speed rail, and renewable energy technologies. Specific allocations include:

High-speed Internet – $65 billion
• New and repaired roads, highways, and bridges – $110 billion
• Electric vehicle investment – $15 billion
• Modernizing airports – $25 billion
• Water safety – $55 billion
• Upgraded power grid – $73 billion
• Expanded public transit – $39 billion

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The Infrastructure Law is the largest long-term investment in the U.S. public works system since 2009

Supply Chain Disruptions Task Force

In addition to the new law, President Biden signed an executive order directing government agencies to assess vulnerabilities in the nation’s critical supply chains. The Supply Chain Disruptions Task Force was created to address the challenges in the supply chain formed by pandemic-related disruptions.

Based on the task force’s assessments, they identified ways to strengthen supply chain resilience and efficiency, devising concrete actions to bring improvements. The actions have contributed to steady progress in rebuilding American supply chains. This progress has already included a record:

Number of manufacturing jobs have been added to the economy
Amount of cargo has been moved by American ports

In addition, inflation-adjusted retail inventories grew. The White House touts that the progress has contributed to:

The fastest job growth in U.S. history
The fastest economic growth in nearly 40 years
A faster economic recovery than every other G7 country

Seven cabinet agencies, in conjunction with the Supply Chain Disruptions Task Force have released reports that identified weaknesses in the nation’s most important supply chains. The reports by cabinet agency contain strategies that address these weaknesses:

The White House also published a Capstone report that provides an overview of the key actions the Biden Administration has taken over the past year to reduce the vulnerability of U.S. supply chains across a range of important sectors.

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Recent Milestones of the Bipartisan Infrastructure Law

To increase the production and use of American goods, funding within the Bipartisan Infrastructure Law requires that more products and materials be manufactured in the U.S. This provision is expected to benefit American manufacturers and the nation’s supply chains. Experts predict that congestion at ocean ports and airports will subside as fewer goods are imported into the country. This will ease the flow of cargo, reducing bottlenecks across the supply chain networks . This will also allow the movement of goods between American businesses to improve, strengthening the nation’s domestic economic development.

New Projects from The Bipartisan Infrastructure Law

In August, the Biden Administration announced 166 new federal grants totaling $2.2 billion for transportation and logistics projects throughout the nation. The grants are the first from the Rebuilding American Infrastructure with Sustainability and Equity Program (RAISE). The program includes a 20% matching requirement for federally funded projects and can go to:

States
Puerto Rico and Washington D.C.
Tribes and local governments

Arizona

The recent announcement of infrastructure investments in states such as Arizona have been celebrated. In Tucson, a $25 million grant for the 22^nd Street Revitalization Project will repair and update the 22^nd Street Bridge. The project will replace the dilapidated bridge that cannot carry large vehicles due to weight restrictions. The repair signifies an opportunity for rail expansion that will improve America’s supply chain infrastructure by enabling the efficient movement of goods to bolster supply chain productivity. In addition to the $25 million 22^nd Street Revitalization grant, Arizona is set to receive an additional $8 billion in funds for projects. These include:

$5.3 billion for roads and bridges
$903 million for public transportation
$76 million for EV charging
$348 million for airports

Georgia

Atlanta, Georgia has also been awarded a $25 million grant to revitalize the Five Points station to improve bus-rail connectivity. This improvement will not only strengthen supply chains so that goods can be transported to communities more efficiently but also will reduce greenhouse gas emissions to promote carbon reduction.

New Hampshire

In Berlin, New Hampshire, $19.5 million will be utilized to repair roads that are in poor condition. The repairs will reduce the effects of snowfall by routing excess heat from biomass power plants underneath streets. The decrease in snowfall effects will allow trucks to move more freely, improving last-mile delivery in the area.

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The White House has released fact sheets highlighting ways the Bipartisan Infrastructure Law is impacting all 50 states, territories, the District of Columbia, and Tribal communities.

Some of the investments include:

$12 million for the Port of Tampa
$20 million to complete the Nevada Pacific Parkway connection and expand dual access to the Union Pacific Railroad and Burlington Northern Santa Fe rail lines
$24.5 million to reconstruct roadways in Ohio
$116 million for New York City to purchase 230 electric battery powered buses

The Biden administration plans to award billions more in additional grants throughout the remainder of 2022.

Rail Transport and Infrastructure

Supply chains rely on rail transportation to move freight throughout the nation. The Bipartisan Infrastructure Law’s investment in intermodal transportation systems is integral in improving the nation’s rail network.

To date, the Federal Railroad Administration (FRA) has developed two programs. The Interstate Rail Compact Grant Program will finance new and existing interstate rail networks for cargo transportation as well as to develop intercity passenger rail services. The purpose of the Railroad Crossing Elimination Grant Program will be to provide funding for highway-rail and pathway-rail crossing improvements. These transportation programs are predominately focused on:

Increasing public safety
Increasing the movement of goods throughout the country

The Bipartisan Infrastructure Law includes $102 billion in total rail funding including:

$66 billion for advanced appropriations
$36 billion in authorized funding

How Good Infrastructure Benefits 3PLs and Shippers

Lower sourcing costs
Reduced fleet, warehousing, and inventory costs
Increased revenue

Improved Data Sharing

The Bipartisan Infrastructure Law will make money available to improve data sharing systems between ports, terminal operators, and truck drivers. These improvements will help to drive supply chain efficiency by making communication more seamless.

The Federal Railroad Administration programs will make the nation’s railroads:

Safer
More reliable
More resilient
More sustainable
More equitable

Figure 1 – https://railroads.dot.gov/BIL

Infrastructure Components that Impact the Supply Chain

Ports and Air Freight Investment

The Bipartisan Infrastructure Law commits $17 billion in investment funds to ocean shipping ports and $25 billion to airports, including air freight. These investments will reduce backlogs and bottlenecks that have contributed to supply chain disruptions. By reducing congestion, ocean ports and airports will be able to expedite commerce and reduce the environmental impact faced by communities due to idling transport vehicles.

Improving Roads

According to The White House, one in five miles of highway systems and 45,000 bridges in the United States need rehabilitation. The Act pledges $110 billion to improve the nation’s roads and bridges and to support major infrastructure projects. In addition, over $1 billion has been committed through 2026 for projects that will reduce or improve:

Highway safety
Transportation efficiency
Supply chain reliability
Connectivity between freight transportation modes

Increasing The Number of Drivers in the Trucking Industry

The American Trucking Association currently estimates that the U.S. has a shortfall of 80,000 truck drivers. This has been detrimental to American supply chains as 72 percent of domestic goods are moved by truck.

Many companies have increased their wages and benefits to attract more drivers and get products moving. To supplement these efforts, The Biden Administration awarded $44 million in grants through its Trucking Action Plan. These funds will be used to enhance road safety and make obtaining a Commercial Driver’s License more efficient. With over 75% more funding due to the Bipartisan Infrastructure Law, this program is designed to reduce supply chain pressures and make goods more affordable to consumers by improving the trucking workforce.

The Trucking Action Plan will fund campaigns to increase awareness of career opportunities in the transportation sector and apprenticeship programs for drivers under the age of 21.

In addition, states will be able to use funds to:

Reduce CDL program wait times
Ensure disqualification data is exchanged electronically
Implement regulatory requirements
Combat human trafficking

The Trucking Action Plan is not only focused on improving the CDL process, but also truck driver retention. Due to pay, parking shortages, and low job quality, retaining drivers has been a challenge for trucking companies. The grant will be used to retain well-trained truck drivers in the workforce to ease pandemic-driven supply chain disruptions.

Reducing U.S. Reliance on International Markets

In its quest for sustainability, the U.S. wants to rely less on foreign markets. The Bipartisan Infrastructure Law details plans to reduce U.S. reliance on Asia as well as to help increase the nation’s energy efficiency. For example, by expanding their production in the U.S. through the Battery Material Processing Grant Program, the federal government can ensure the U.S. has a viable battery materials processing industry.

In August, the Biden Administration requested a study from the Department of Energy (DoE). The study will highlight the development and implementation of the $675 million Critical Materials Research, Development, Demonstration, and Commercialization Program. Thanks to funds from the Bipartisan Infrastructure Law, the program will address the vulnerabilities of the nation’s domestic critical issues supply chain. By improving domestic sourcing and production, America can strengthen its position as a leader in global manufacturing. According to the Department of Energy, the weaknesses in the supply chain put the U.S. at an economic disadvantage and impede the nation’s transition to clean energy. Critical materials such as lithium, nickel, and cobalt, are necessary to produce several green technologies. These technologies include:

Electric vehicle batteries
Electric vehicles
Wind turbines
Solar panels

Over the next several decades, global demand for critical materials is expected to increase by 400-600%. The demand for materials such as lithium and graphite used in electric-vehicle batteries, is expected to increase by as much as 4,000%. The DoE’s comprehensive program calls for increased domestic raw-materials production and manufacturing capacity. This would:

Reduce American dependence on foreign sources of critical materials
Help secure America’s clean energy supply chain
Introduce more jobs associated with the clean energy transition

Small Businesses Can Benefit from the Infrastructure Law

Over 30% of small businesses reported that supply chain disruptions caused by the pandemic have had a major impact on their operations.. The bill is expected to help small businesses dig out of the hole that COVID-19 put many of them in, leaving them in a better position for future stabilization and growth. It is estimated that over two million jobs across multiple sectors will be created because of the bill. Many of these positions will be needed for infrastructure-related projects such as:

High-speed internet installation
Highway and roadway improvement
Power grid upgrades

Small businesses that are in position to support infrastructure-related projects can capitalize on tax breaks and incentives that come from constructing green infrastructure. Green infrastructure is defined as infrastructure that uses:

Plant and soil systems
Permeable pavement
Storm water harvesting

The improvements to infrastructure that will come from the Infrastructure Act will increase the nation’s supply chain productivity by connecting metropolitan cities with small businesses in rural areas. This will make supply chain logistics swifter and more efficient. In addition, improved access to reliable highspeed internet will enhance small business e-commerce capabilities.

Conclusion

The Infrastructure Investment and Jobs Act is designed to impact the nation’s supply chains by reducing bottlenecks and increasing the reliability of transportation resources. By doing so, transportation logistics systems and supply chain capacity will improve. The infrastructure bill has a direct impact on each sector of infrastructure in the nation. The projects that have been set will improve the nation’s transportation options. The upgrades to types of infrastructure such as inland waterways, road bridges, and highway systems will promote enhancements in U.S supply chain efficiency and capacity.

Despite challenges associated with the implementation of the Act, the comprehensive plan brings good news for both the U.S. and private companies. The development of public-private partnerships is encouraged to diversify funds for infrastructure finance. As private sector companies invest in civil engineering projects, the demand for raw materials and construction equipment will go up. This will promote competition, which experts say is good for the U.S. economy.