Last night, a group of 21 Senators released their much-anticipated infrastructure compromise. The package comes with a price tag of $1.2 trillion dollars, including over $570 billion in new spending. The package allocates $110 billion on roads and bridges, $66 billion on the rail, and $48.5 billion on transit as well monies for Democratic priorities such as electric vehicle infrastructure.
Differences remain on how to pay for the new infrastructure spending. While this proposal recommends 11 sources of pay-for, relying heavily on raising the gas tax and repurposing COVID relief funds, the idea has already rejected by the Biden Administration signaling that further compromise will be needed for this package to advance.
Munis and P3 Financing
While munis were not directly referenced in the proposal, the bipartisan group discussed public-private partnerships and leveraging private investment in infrastructure. Munis remain in a strong position, receiving bipartisan support in both chambers of Congress and from the Administration.
The MBFA and BDA continue to work with our partners on Capitol Hill and within the Administration, along with the issuer community to ensure that municipal market priorities are included in the potential federal infrastructure package. We will continue to provide updates as they become available.