“The Congressional Budget Office (CBO), the legislature’s nonpartisan number-crunching agency, says the bipartisan infrastructure bill would add about $256 billion to the deficit over 10 years. The real figure is likely to be higher, because the package contains a few gimmicky elements that are designed to trick the CBO’s forecasting metrics.
The biggest of those gimmicks is the promise that Congress will reallocate more than $200 billion of COVID relief funds to cover infrastructure costs. It remains unclear exactly what unused COVID funds will be redirected, and the bill only rescinds $50 billion in actual budget authority from previously passed COVID relief bills, according to an analysis by the Committee for a Responsible Federal Budget (CRFB).
Other proposals to save and redirect federal dollars to pay for the infrastructure bill are also unlikely to materialize. Take the $49 billion lawmakers plan to “save” by further delaying an already-delayed Trump administration regulation altering how prescription drug discounts are applied by health insurers. “Because the Congressional Budget Office projected that the so-called rebate rule would increase federal spending in Medicare and Medicaid by about $177 billion over a decade, due to a rise in Medicare premiums (and therefore, taxpayer-funded subsidies for Medicare premiums), lawmakers get to count a further delay in the rule (beyond the Biden administration’s one-year delay) as ‘savings’ for the federal government,” explains the National Taxpayers Union.”
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“When you filter out the gimmicks designed to game the CBO score of the infrastructure bill, the CRFB says the package will probably add $340 billion to the deficit over 10 years.”
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“But as the CBO’s report makes clear, actually paying for the infrastructure makes those benefits bigger than they otherwise would be. A fully offset infrastructure package would boost GDP by an estimated 0.11 percent over the next 30 years while a deficit-financed package would barely break even. That’s because, as the CRFB notes, running higher deficits to pay for infrastructure spending will reduce private investment over the long term and, thus, lower future economic growth as well.”
“Biden’s statements on the legislation were crucial to advancing it. When the president met with lawmakers in June, he pledged that he wouldn’t push to include any physical infrastructure funding in Democrats’ reconciliation bill that wasn’t included in the bipartisan one.
As Politico’s Burgess Everett and Marianne LeVine reported, that position helped assuage some of the Republican senators’ concerns that Democrats would agree to whatever cuts were needed to gain GOP support before later passing everything that was cut using the reconciliation process, which requires only a Senate majority. Taking Biden at his word that what was cut from the bill was gone forever allowed many Republicans to give the bipartisan bill their support, according to Sen. Mitt Romney (R-UT).”
“One reason the US isn’t very good at building transit cheaply is that it doesn’t practice.
“If you look at Paris or Seoul or Shanghai, they’ve been building [transit] pretty much nonstop for decades now. New York, on the other hand, built its subway at a breakneck pace until 1940 and then cooled it,” Goldwyn explained.
Agencies aren’t routinely in charge of building new things, so every time they do, it’s back to the drawing board.
“There’s a learning curve, almost with every city, when they’re introducing rail, because you don’t have a local knowledge base on how to do this,” explained Ethan Elkind, director of the climate program at UC Berkeley’s Center for Law, Energy & the Environment. “Whether that’s on the construction side or the oversight side or public management side. You do see a lot of cities stumble out of the gate when they’re trying to get their first projects done.”
Then there’s the complexity of building across multiple jurisdictions. The federal government often provides funding for a project that requires multiple cities or counties to coordinate, all to complete a multibillion-dollar project unlike one they’ve probably ever accomplished before, often without a clearly defined leader — it’s like the most dysfunctional group project ever.”
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““Here in the United States, we as a country are not very accepting of disruption,” Goldwyn told Vox. In Los Angeles, workers constructing the Purple Line could only work weekends — then Covid-19 hit, and stay-at-home orders made it possible for them to work 24/7. The result?
“They completed the project seven months ahead of schedule.””
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“There are also myriad ways the US needs to streamline the process for developing transit projects. Lewis explained to me that European regulators were often shocked that American transit agencies have to go through their own process to get authorization to shut down a street or prepare an area for construction.
“A lot of the [processes] that we use here in the United States are too slow or too cumbersome and outdated. We need to make it easier to build more and better transit projects,” Lewis explained.”
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“As the Action Committee for Transit, a local pro-transit organization, documented, residents of the wealthy DC suburb of Chevy Chase have led a decades-long crusade against the light rail project, which will benefit the entire region, by claiming that a “tiny transparent invertebrate” might be at risk. “When no endangered amphipods were found,” the detractors turned to other arguments. However, repeated references to the potential harm to the Columbia Country Club and also a public comment disparaging the needs of people in less affluent communities makes clear that much of the stated concern was likely never environmental or financial.”
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“Any major project will incur harms on some group of people — construction can impede traffic, new structures can obstruct a view from your porch, things that reasonable people would agree are annoying or costly. But transportation projects have to go somewhere, and one only has to look at the housing market to see the costs of allowing individual citizens to derail projects due to real or fabricated harms.”
“An influx of additional funding would allow Amtrak to eliminate this backlog and pave the way for faster, more frequent service, passenger rail proponents argue. “There’s so much we can do, and it’s the biggest bang for the buck we can expend,” said Biden about increasing Amtrak funding back in April.
Nevertheless, one of the reasons that Amtrak’s maintenance backlog is so big in dollar terms is that it’s incredibly inefficient at spending the money it does get.
At current costs, Amtrak needs to spend $90 million per mile “merely to keep the same service as exists today,” wrote the Manhattan Institute’s Connor Harris in an April New York Post column. “For comparison, in countries such as France and Spain, less than half that cost per mile would cover a brand-new high-speed rail line good for speeds of more than 200 miles per hour.”
Getting Amtrak’s costs down to European levels would allow it to fix a lot more of its infrastructure for a lot less money. Lawmakers of both parties instead appear set on simply shoveling more taxpayer money at the inefficient agency.”
“Senate Democrats are navigating a tricky balancing act: attempting to simultaneously advance both a $600 billion bipartisan infrastructure bill and a $3.5 trillion budget resolution full of Democratic priorities that’s only expected to garner partisan support.
This plan, which has colloquially been referred to as the “two-track strategy,” is intended to demonstrate that lawmakers can actually work across party lines to get something done on “hard” infrastructure, like roads and airports, and that Democrats can also deliver on “human” infrastructure that’s a party priority but that Republicans won’t support, like funding for long-term caregiving and paid leave.
It is a somewhat circuitous approach to approving infrastructure legislation, driven by the focus that moderate Democrats, and President Joe Biden, have put on bipartisanship — as well as their refusal to alter the filibuster.”
“Home broadband is more important than ever. It’s also seemingly a luxury good.
Just over half of Americans making less than $30,000 a year have home broadband, a service that’s increasingly important for numerous aspects of life, from school to work to socializing. A much higher 92 percent of households bringing in $75,000 or more per year have home broadband, according to a new survey by Pew Research Center.”
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“That’s due to the high cost of internet in the United States — about $60 a month — which is more than many Americans can afford. Nearly half of those without broadband don’t have it because they say it’s too expensive, according to the survey. Broadband in the US is more expensive than in many other developed nations.
The crux of the issue is that the US is very large and building out internet infrastructure is expensive, so internet companies are more likely to do so in areas where there are lots of paying customers: wealthier and populous areas. Since internet companies are not regulated like utilities, they have little economic incentive to build out internet to isolated or poorer areas, where there are fewer customers or at least fewer customers who can afford it. The result is a digital divide in which many poorer and more rural Americans lack access to broadband internet.”
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“In the meantime, about half of those without broadband say they can do everything they need to do online with their smartphone.”
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“People can do plenty of things perfectly fine on a smartphone, but there is an upper limit (try writing and sending a cover letter, toggling through different tabs and apps for work, or even being able to get the same options on your bank’s mobile website as its regular website).
“In most cases, it’s easier to use a bigger screen with a connected computer than it is to use a smartphone. If you don’t have [a computer with broadband], you’re not really plugged into the modern economy,” Rainie said, pointing to how important having a computer with broadband is for things like applying for a job. “The data shows you’re not capable of being the kind of social, political, and economic actor that people who have broadband are able to be,” he added.”
“the company was likely breached through a leaked password to an old account that had access to the virtual private network (VPN) used to remotely access the company’s servers. The account reportedly didn’t have multifactor authentication, so the hackers only needed to know the username and the password to gain access to the largest petroleum pipeline in the country.”
“In the House, Speaker Nancy Pelosi said she would link the two bills together, to prevent the party’s left from losing heart. “There ain’t going to be an infrastructure bill unless we have the reconciliation bill passed by the United States Senate,” Pelosi said Thursday.
This is an attempt to put the moderate Democrats in a box. It’s a promise from Pelosi to hold their cherished bipartisan deal hostage unless they fall in line with Biden’s reconciliation plan. It’s not clear whether this was necessary, since Manchin had already started speaking positively about the reconciliation effort. It also may be a bluff — if the reconciliation effort does fall apart, would Pelosi and House Democrats really choose doing nothing over settling for whatever got through the Senate? But Democrats hope the moderates will simply fall in line, so they don’t have to find out.”