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Thursday, December 2, 2021

USA. The House of Representatives has adopted an investment program worth more than $ 1 trillion

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The House of Representatives has adopted an infrastructure investment package worth more than $ 1 trillion. The money is to be used over the next seven years. The lower house of US Congress has also taken a key step towards passing the $ 1.75 trillion new welfare programs law.

228 congressmen voted in favor of the law, including 13 Republicans, and 206 were against (including 6 Democrats). The bill will now be signed by President Biden, for whom it is one of the main election promises.


Investment packages adopted by Congress

– At a time when many of our compatriots are losing faith in our institutions, today we have shown that democracy continues to produce results – commented Democratic Congressman Tom Malinowski after the vote, pointing to the fact that politicians from both parties voted in favor of the bill.

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The expense package approved by Congress is one of the largest investment plans of this type in the history of the country. It includes expenses of approximately $ 1.2 trillion over 7 years, of which $ 550 billion. they are new expenses, not included in the previous budget. 110 billion dollars will be allocated to repairs of roads and bridges, 66 billion dollars. on the railroad, $ 65 billion to expand the broadband network to the entire country, $ 65 billion. for the renovation of the power grid, $ 50 billion on protection against climate change and 40 on public transport. The program also provides for the construction of a nationwide network of electric vehicle charging stations.

According to estimates, this spending is expected to increase US public debt by more than $ 250 billion over the next decade, which has been criticized by most Republicans.

Investments in the USA

According to President Biden, who has been promoting the program in recent months during his visits to the whole country, investments are to ensure America’s sustainable economic development, create millions of jobs and be a key element in competition with China, which has spent many years spending huge amounts on modernizing infrastructure.

The law was passed after almost half a year of negotiations and, at times, fierce disputes, mainly between the centrist and left-wing wing of the Democratic Party. The left wanted the centrist-favored project to be voted along with another major social spending plan and a green transition. In the end, it did not come to that, but on Friday the House of Representatives took the first step towards its adoption by allowing the bill to be voted on on November 15th.

Biden’s election promises

This project, called Build Back Better Act, assumes in its present form the implementation of many of Biden’s election promises, including introducing for the first time in the history of the country guaranteed paid parental leave, extension of tax credits for children and universal access to kindergartens for 3 and 4-year-olds. The expenses are to amount to $ 1.75 trillion over 10 years and be financed, inter alia, by using the minimum corporate tax rate. Given the resistance of the two centrist Democrats in the Senate, it is almost certain that the bill will be cut back when it enters the Senate.

Main photo source: shutterstock

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