At the end of March 2021, President Joe Biden introduced a new infrastructure proposal— titled the American Jobs Plan—which is focused on reestablishing the country’s economy. This proposal is the second component of the Biden Administration’s larger, three-part infrastructure package, known as the Build Back Better Plan.
The American Jobs Plan is preceded by the American Rescue Plan and will eventually be followed by the American Families Plan. While the American Rescue Plan is currently providing direct relief to individuals and businesses affected by the COVID-19 pandemic, the American Jobs Plan is intended to help revitalize the national economy for years to come.
Specifically, the main goals of the American Jobs Plan are to develop millions of jobs across industry lines, rebuild the country’s infrastructure and place the United States in a position to compete with China. This plan—which is requesting approximately $2 trillion over the course of eight years—consists of seven key policy elements. Here is a summary of these elements and next steps for the Build Back Better Plan.
KEY ELEMENTS OF THE AMERICAN JOBS PLAN
Each of the seven major policy elements contained in the American Jobs Plan includes various provisions that would affect both individuals and businesses of varying sectors. Here’s an outline of each policy element (access the full report and key takeaways here):
1. Modernizing Transportation
The first element of the American Jobs Plan focuses on establishing a world-class transportation infrastructure throughout the country. This element includes fixing highways, rebuilding bridges, renewing airports and upgrading public transit systems. A total of $621 billion would be allocated to this policy element.
2. Providing Clean Drinking Water, a Renewed Power Infrastructure and High-speed Broadband
The second element of the American Jobs Plan centers around delivering clean drinking water to all Americans, putting hundreds of thousands of individuals to work in the process of revamping the nation’s power infrastructure and offering affordable, high-speed broadband across the country. A total of $311 billion would be allocated to this policy element.
3. Creating Resilient Residential and Commercial Properties
The third element of the American Jobs Plan focuses on building, preserving and retrofitting both residential and commercial properties across the nation to be affordable, accessible and energy-efficient. This element also centers around providing such property improvements to schools, child care facilities, hospitals and federal buildings. A total of $378 billion would be allocated to this policy element,
4. Supporting the Home Care Industry
The fourth element of the American Jobs Plan prioritizes improvements within the home care sector. A total of $400 billion would be allocated to this policy element, which can be broken down into several main initiatives.
First, the funding of this element would help expand access to high-quality and affordable home- or community-based care for elderly individuals and those with disabilities. The funding of this element would also support the extension of Medicaid programs and the continued advancement of long-term care options. Lastly, the funding of this element would provide added support to existing home care employees (e.g., improved benefits), as well as establish new career opportunities within the caregiving industry.
5. Investing in Technology, Advancing the Manufacturing Sector and Developing a Skilled Workforce
The fifth element of the American Jobs Plan centers around numerous investments in the country’s research and development (R&D) capabilities—thus supporting widespread technological advancements, the revitalization of the manufacturing industry and the development of a more skilled workforce. A total of $580 billion would be allocated to this policy element.
6. Ensuring Safe and Supportive Work Environments
The sixth element of the American Jobs Plan focuses on protecting American workers. Specifically, this policy element would implement changes to ensure that employees of all demographics have access to a safe working environment and good-paying job opportunities.
7. Implementing a New Tax Plan
The final element of the American Jobs Plan outlines changes to the corporate tax code. These changes—which make up the Made in America Tax Plan—aim to encourage the creation of both job and investment opportunities within the United States.
Next Steps for the Build Back Better Plan
When (or if) the American Jobs Plan will be passed and signed into law depends on how quickly it can gather support in Congress. Yet, current estimates suggest that this proposal could be enacted in just a few months, potentially during the mid-to-late summer.
In terms of next steps for the Build Back Better Plan as a whole, the American Families Plan—which is the final proposal included in the larger, three-part infrastructure package—is expected to be released in the coming weeks. This proposal will outline the Biden Administration’s plan for supporting the middle class and ensuring all American families have the resources necessary to maintain financial stability.