Senate vote brings signs of progress and optimism on a new infrastructure bill

Earlier this week, in this space, I lamented how progress on a bipartisan push for the framework for a $1.2 billion transportation infrastructure authorization had ostensibly stalled out. Well, just a few days later, it turns out that perhaps I jumped the gun on that sentiment and that some progress towards a new authorization has been made.

To what extent and where things go from here remains to be seen, but the key thing to note is that things are not dead in the water, not at all.

In short, based on various reports and statements from various industry associations, the United States Senate signed off on taking up the bill by a convincing 62-17 margin. That is really good news, especially when considering the current political climate, to be sure.

While I commented earlier this week, that details of the legislation were scant, a recent Politico report published linked to a leaked executive summary of the legislation. I have included some of the key supply chain-focused highlights below:

• $110 billion in new spending to address the aging infrastructure needs of the nation’s roads and bridges;
• $3.2 billion, to that $110 billion, allocated towards the Infrastructure for Rebuilding America (INFRA) Grant Program, supporting highway and rail projects of regional and national economic significance; $5 billion towards the National Infrastructure Project Assistance grant program, supporting multi-modal, multi-jurisdictional projects of national or regional significance; $7.5 billion for Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grants, supporting transportation projects of local and/or regional significance;
• $66 billion to support the infrastructure needs of the U.S. rail network, including $5 billion for the Consolidated Rail Infrastructure and Safety Improvement program;
• $17.3 billion towards ports and waterways, for port infrastructure and land ports of entry, and other efforts; and
• $25 billion towards airports, increasing funds for the Airport Improvement grant program for runways, gates and taxiways, among others

Not surprisingly, this development was applauded by myriad industry stakeholders.

American Trucking Associations President and CEO Chris Spear said that it’s refreshing to see Congress do its job and address national problems facing businesses and families.

“Americans, and the hardworking men and women who carry this economy on trucks, have waited long enough for Washington to act on our decaying infrastructure,” he said. “We cheer this bipartisan breakthrough and hope it helps elected officials find more areas where they can work together to actually get things done.”

And Jack Howard, Senior Vice President of Government Affairs, U.S. Chamber of Commerce said: “We applaud the bipartisan group of Senators—led by Senators Portman and Sinema—who worked tirelessly to achieve agreement on this much needed infrastructure proposal. The investment included in this agreement will provide enormous benefits for the American people and the economy. Our nation has been waiting for infrastructure modernization for over a decade, and this is a critical step in the process. We now urge the full Senate to vote yes on the cloture motion to proceed to consideration so infrastructure legislation can be approved before the August recess.”

There are many other examples of industry organizations endorsing this positive momentum, too. But, before we get too far ahead of our skis, much more needs to happen before we are on the road, or track, waterway, or air strip, to a new deal. That was made clear by Randy Mullett, principal of Mullett Strategies, a consulting practice focused on helping clients navigate the intricacies of Washington, DC in the areas of trucking, freight, sustainability, security, and safety, 

“I am encouraged that they have come to an agreement and have voted to start debate on the proposal,” Mullett told LM. “There is still a long way to go to lock down the funding as many of the funding streams have yet to be scored by CBO to see if their assumptions are correct.  There is an even longer way to go in bringing the House along.  The House bill had very different funding levels and policy priorities and Chairman DeFazio has already spoken unfavorably about the Senate deal.”  
 

With Congress soon set to depart for August recess, things could be in a holding pattern for a bit, but at least there is some positive momentum. In times like these, when lack of bipartisanship has become alarmingly typical (and expected), it is good to see some progress being made.