United State News

United State

 

NEW YORK (AP) — The Biden administration’s $1.9 trillion infrastructure bill could provide billions more dollars in funding for the U.S. than some other nations, including Canada and Germany. And it appears to be benefiting New York City by a wide margin with an increase of almost $1 billion in sales tax revenue in the past year alone.

The legislation would fund major projects like upgrading roads, bridges, tunnels, and airports, building new port facilities, and bringing down the cost of electric grid upgrades in New York City, which is home to nearly four million people and has a population of just over eight million. In all, New York officials said they estimate that the state will receive about $3.5 billion from the federal funds over 10 years.

The money comes at a time when many Americans are struggling with high gas prices, rising interest rates, and higher-than-forecast inflation. But there’s also evidence that the money may help boost local economies as well. According to a preliminary analysis by the Center on Budget & Policy Priorities, a $1.4 billion investment into the public transit system would help reduce congestion in Manhattan’s subway network and in its subways, which has the biggest concentration of workers in the country. It also would bring in a few billion dollars per year in additional annual spending for the Metropolitan Transportation Authority, or MTA, which operates the city’s commuter rail system.

 A separate report indicates that the program could generate $1.7 billion in savings for cities statewide and create millions in job opportunities in the private sector. Those figures have been updated slightly in response to changes in the law that passed last month.

“If you look at what the federal government is doing right now, it’s not enough,” said Sen. Chuck Schumer, D-N.Y., who has been leading negotiations with lawmakers on the package since last summer. “They need to double down on this. They can’t afford to lose any opportunity to make sure we have everything they need — especially if it helps ensure the transition to clean energy.”

Schumer told reporters that he has spoken to his colleagues in both chambers of Congress, as well as President Joe Biden, urging them to continue negotiations and pass the legislation soon. He also noted that the White House recently announced plans to spend another $2 billion to accelerate construction on two big pipelines from Western Pennsylvania to New York, where the vast majority of the state’s coal power is generated.

“That’s going to help New York get out of their energy crisis and keep working with us so that we can deliver on the promises that we made,” he said.
The deal includes roughly $2 billion in investments to upgrade the nation’s electricity transmission networks, particularly through efforts that include the effort to install offshore wind turbines, according to a summary of the bill released in January by Senate Energy ranking member Rob Portman, R-Ohio. Portman previously proposed a similar measure in 2013 but did not advance it because Republicans did not want the costs passed along to consumers, said David Freed, president of the conservative American Liberty Foundation, who has supported the project.

Freed noted that the proposal is much larger than what Portman initially proposed, and called it a significant improvement. While he didn’t support Portman’s overall plan, he noted that his proposal does offer important incentives for companies looking to build large-scale renewable energy projects, such as solar farms on land that isn’t occupied.
“This is going to improve our national energy security and protect our economy from future economic disruptions,” he said.

But Democrats say more needs to be done to address the climate risks that threaten residents and businesses across the country, especially vulnerable communities in urban areas like New York. They argue that the legislation will do little to mitigate these problems and risk exacerbating them further.

“It doesn’t go far enough in addressing these challenges,” said Rep. Alexandria Ocasio-Cortez, D-N.Y., who was among several legislators who sent letters to Biden last week asking him to prioritize policies on lowering carbon emissions to preserve jobs and lower housing costs. She also requested that the money used for housing programs in the budget be matched up with financial relief for low- and middle-income households.
“The fact that we are talking about putting money into something that we know will not solve climate change, I think is very dangerous,” she said. “We don’t know how big the impact of climate change will end up being, but we know that we need real, immediate action that puts money directly into people’s pockets and protects our planet.”

The deal was negotiated by senators from both parties, with the bulk of the work being completed by Senator John Thune, Republican of South Dakota and chair of the Senate Finance Committee, whose office helped lead the negotiation of the initial version of the legislation, according to a person familiar with the matter.
The bill was released following days of talks between senators and staffers who were involved in crafting the final text, according to multiple sources.

It includes proposals that allow Medicare to negotiate for lower drug prices on behalf of beneficiaries, rather than requiring hospitals to pay for them out of pocket, according to one source briefed on the discussion. The agreement also seeks to expand Medicaid access to children with special needs, while allowing states to set their age limits. States are limited to $15 per hour in Medicaid payments and 15% of net operating income before taxes or other payments to cover health care costs, the bill says.

The package also includes provisions to require employers to contribute to retirement savings plans, instead of covering contributions with their employees. It also establishes a credit for taxpayers earning less than $50,000 a year that can be used toward buying insurance for their kids who can’t afford coverage on their parents’ salaries.

The package also creates a special account to incentivize states to buy up cheap power from large industrial plants, reducing reliance on natural gas, and provides grants for community solar gardens and rural broadband connectivity.

The bill also includes a provision to encourage investment in manufacturing, which would help reduce greenhouse gases. Additionally, it calls for $7 billion to invest in transportation systems and modernize mass transit. Finally, it contains measures to help small businesses.

The legislation is expected to reach the desk of President Joe Biden after weeks of negotiating, and then be signed into law.