Modernizing America’s Infrastructure and How Companies Can Begin to Prepare
Across America, the “Infrastructure Decade” is upon us. In the six months since the $1.2 trillion Infrastructure Investment and Jobs Act was signed into law, the Biden Administration has announced “over $110 billion to rebuild roads and bridges, modernize ports and airports, replace lead pipes to deliver clean water and expand high-speed internet.” Another $100 billion will be released in the near future.
This transformative government funding will impact almost every industry and community across the nation. The investment will extend well beyond traditional infrastructure of highways, roads and bridges to include broadband access, clean drinking water and air, upgrades to airport and seaport facilities, public transit systems, the transportation of goods and people, and a focus on building healthy and sustainable communities.
Companies should assess how they plan to navigate the business and communications opportunities surrounding this $1.2 trillion in government funding. Below, we outline six ways businesses can begin preparing, today.
Why is this important?
The Infrastructure Law, signed last November, is the largest investment in our nation’s infrastructure since the Eisenhower Administration. This law allows for a once-in-a-generation investment in America’s infrastructure and competitiveness that will create jobs, spur economic growth and community investments, combat climate change — and help lower costs for business and families.
It impacts nearly every industry and community across the nation and seeks to address major societal challenges in the environment and climate, community and culture, as well as policy and governance sectors.
Quick facts:
- The Infrastructure Law contains $550 billion in new spending. The $1.2 trillion figure comes from including additional funding normally allocated each year for highways and other infrastructure projects.
- Government spending will begin this year through existing federal program grants and other funding. However, a large portion of the funding will be distributed through states, local governments and tribal communities over the next several years, with contracts being awarded via formulas and competitive grants.
- State and local elected leaders are expected to band together, as governors and mayors are responsible for 90% of the expenditures in the law, while the federal government accounts for only 10% of the direct spending.
- On May 13, the Biden administration made $45 billion in broadband funding available to the states to ensure high-speed internet service is available in rural areas and affordable to not only those with low incomes but to the middle class as well.
- On Monday, May 16, the White House announced there are 4,300 infrastructure projects underway.
What other priority initiatives will the Infrastructure Law address?
- Modernizing drinking water and wastewater systems, including lead pipe removal in underserviced communities.
- Building a network of 500,000 EV (electric vehicle) charging stations across the nation to accelerate the transition from gasoline and electric vehicles.
- Updating the nation’s electric grid to transition to renewable energy sourcing and improve performance.
- Investing in sustainable transportation solutions (e.g., public transit, airports, ports and waterways, low emissions buses and ferries, and railways — including funding for Amtrak.)
- Developing climate resilient solutions (e.g., electric charging stations, environmental remediation).
What should companies do now to prepare?
- Set up cross-functional teams to assess business opportunities around the $1.2 trillion spending bill — both directly and indirectly.
- Prioritize funding opportunities to pursue and develop a campaign to secure the funding.
- Assess how state and local government infrastructure funding might impact business operations and future investment decision-making.
- Determine how the company’s geographic footprint overlaps with the law’s funding priorities.
- Develop internal communications to educate the workforce and supply chains on the business impact of this law, including with respect to wages, local labor laws, domestic content provisions — while emphasizing recruitment of new hires and training of the workforce.
- Design a marketing and communications campaign to achieve your company’s business and communications objectives, which may include a targeted marketing and comms plan for federal and/or state decision-makers, an updated narrative with the government audience in mind, executive visibility and thought leadership.
This article is co-authored by Steve Bassermann and Madeline Skahill.
