At HMH, naturally we’re deeply invested in the transportation industry, and all the nuances and opportunities that arise from innovation and development. Many of our clients have taken bold steps to accommodate the Future of Transportation, whether that means autonomous trucks, e-powertrains, supply chain logistics or public transit. So now that the $1 trillion infrastructure legislation has been passed by the Senate, we can look at how its ultimate passage would affect our clients. Let’s break it down.
- The package will provide $110 billion in funding for roads, bridges and other major projects. While that’s exciting and good news, the American Society of Civil Engineers estimates that there is roughly a $786 billion backlog in repairs needed. While that might not seem like the appropriate amount, every little bit helps, and we desperately need improvements.
- There will be an increased emphasis on rail and freight lines, with roughly $66 billion allocated. This new funding will be the largest investment in passenger rail since Amtrak was created 50 years ago, seeking to build out the Northeast rail corridor, and expand rail service outside of the Northeast and mid-Atlantic.
- One of the most exciting aspects of the bill: $7.5 billion will be allocated towards building out the nation’s network of electric vehicle charging stations. This aligns with several states and governments that are seeking to transition to all-electric vehicles by 2035. The package also invests $2.5 billion in zero-emission buses.
- $73 billion will be allocated to modernize the national grid and further introduce renewable energy. While much of this is being funneled through the Department of Energy, it will most likely be businesses that will be focused on innovation and development.
- $42 billion will be used to help reduce congestion at ports and airports. Given that ports are often the lifeblood of important, necessary cargo, this will hopefully help them become even more efficient. The legislation would invest $17 billion in port infrastructure and $25 billion in airports to address repair and maintenance backlogs, reduce congestion and emissions near ports and airports, and promote electrification and other low-carbon technologies.
While the bill has been pared down from the initial $2.6 trillion plan, progress is progress, and this will incentivize many of our clients to continue resourcing alternative fuels, clean energy and zero-emissions products for the near future.