The Senate today passed the long-awaited $1 trillion infrastructure package, formally known as the Infrastructure Investment and Jobs Act. The 69-30 vote marks a pivotal step in the advancement of the nation’s largest long-term infrastructure investment in nearly a century.
Under the five-year plan, New Jersey would receive approximately $6.8 billion for highways, $1.1 billion for bridges, $4.1 billion for transit, $250 million for drinking water, and $598 million for clean water under existing federal formulas.
For transportation, these figures do not include funding the state could receive under grants and related programs including $16 billion program for projects of national significance, $30 billion earmarked for Amtrak’s Northeast Corridor and $8 billion for capital improvement grants, each being considered as possible funding sources for the Gateway Tunnel Project.
We are also pleased to report that the UTCA toll credit marketplace provision is included in the bill, thanks to the efforts of Senator Booker. NJ has $5.5 billion of these credits and this provision would allow the State to sell them at a discount to other states. If included in the final legislation, this provision could raise billions of dollars for New Jersey’s transportation capital plan.
What’s Next
The Senate worked through the weekend, holding several procedural votes Saturday and Sunday which cleared the way for today’s final vote. The bill now heads to the House for consideration, although the timeframe for action remains unclear.
The bill has detractors on both sides of the aisle and will need to clear significant hurdles in the House to earn passage, not the least of which is House Speaker Nancy Pelosi’s statement that the lower chamber will not consider the bill until the Senate passes Democrats’ $3.5 trillion social spending package.
Despite the challenges, there is still a viable path forward for the measure as both President Biden and House moderates push for passage of the Senate-brokered language. Pressure on the Speaker has been increasing steadily, but for now it is a waiting game – both chambers have a scheduled August recess, but could be called back early.
This is the closest we’ve come to passing an infrastructure bill of this size, and for now, we remain cautiously optimistic that Congress will pass this once-in-a-generation measure. We’ll be sure to keep you updated as this historic bill advances.