The analysis from S&P Global – which was circulated by the White House – estimates that by 2030, the Infrastructure Investment and Jobs Act would boost employment by more than 880,000, with many middle-class jobs, including in construction, engineering and accounting.
If it becomes law, the bipartisan, Senate-approved infrastructure bill will also increase per capita personal income in 2030 by about $100 per person, or roughly 10.5%, according to the S&P study. With fatter paychecks and more jobs, households are projected to spend an additional $677 billion over the eight-year period.
"This will likely help offset some of the impact of COVID-19 on the jobs market, providing a lifeline to the millions of unemployed workers, including many long-term unemployed, who were displaced by it," the analysis said.
At the same time, the infrastructure bill, which includes $550 billion in new funding, could boost productivity in the long run, raising GDP – the broadest measure of goods and services produced in the country – by 2.1% on an annual basis over the next eight years. The plan is estimated to add about $1.4 trillion to the economy over the next eight years.
Without additional infrastructure spending, GDP is expected to plateau around 1.7% by 2030, according to economic projections released by the nonpartisan Congressional Budget Office in July.
The measure includes $110 billion for roads, $73 billion for power infrastructure, $66 billion for passenger and freight rail, $65 billion to expand broadband access, $55 billion for clean drinking water, $39 billion for public transit, $25 billion for airports, $21 billion for environmental remediation, $17 billion for ports, $11 billion for transportation safety, $7.5 billion for electric vehicle infrastructure, $5 billion for zero or low-emission busses and $1 billion to demolish or reconstruct infrastructure that divided communities.
It will be paid for by repurposing unspent coronavirus relief funds, along with recouping fraudulently paid unemployment money, unemployment money returned by states that prematurely ended a federal $300-a-week benefit, targeted corporate users fees, strengthened tax enforcement for cryptocurrencies and economic growth created by the investments.
The proposal cleared a major hurdle this week, after House Democrats overcame an interparty dispute, approving a $3.5 trillion budget plan that will serve as the basis for a massive reconciliation bill and set a Sept. 27 deadline for a vote on the infrastructure bill.