Positioning Your Business for Economic Recovery Investment Plans 

It is extremely likely that another $2 trillion will be invested under the upcoming Infrastructure Plan, also known as the American Jobs Plan and the American Families Plan. In this article, we continue to look at where the federal money is going, so that our local businesses can be in position to benefit (directly and indirectly) from the economic stimulus spending that will significantly shape the U.S. economy for the next decade. Knowing where the money is flowing is the first step in positioning our local businesses for growth opportunities. This month’s article is about where the money is slated to go during the next decade.

 American Families Plan

Here is a high-level summary of the American Families Plan:

$109 billion will be committed to make two years of community college free in addition to $39 billion for students attending four-year historically black colleges/universities and minority- serving institutions. The enhancement of Pell Grants to low-income students will create more higher education funding opportunities for those students eligible.

$225 billion is flowing to businesses to guarantee paid parental, family and personal illness/safe leave. This portion is commonly referred to as paid universal leave.

$200 billion is going toward universal preschool for families with three- and four-year-olds, with the rollout being focused on high-priority areas. Additionally, $2.8 billion in paid teacher residency programs, $1.3 billion in minority teacher training programs and $3.6 billion in teacher credential building, leadership programs and mentoring, with an emphasis on new teachers and teachers of color.

$25 billion will be spent on supporting children’s nutritional programs for low-income families reliant on free or reduced-price meals by making the Pandemic-EBT program permanent.

Child Care laws are contained in this plan, which will increase child care employee wages, subsidize child care expenses for more families and will continue to integrate federal dollars for child care employers who are supporting employees with rent and personal protection equipment expenses.

Additionally, the American Families Plan would keep the expanded child tax credit through 2025; this will benefit families with children under 17 years of age by extending several child tax credit brackets. More generous Affordable Care Act subsidies would also be contained for lower-income policyholders. Finally, permanency for the child tax credit program is sought, along with a permanent earned income tax credit for workers without children, with worker eligibility expanded to those 19 years old with no upper age limit on workers without children.

American Jobs Plan

Here is the high-level summary for the American Jobs Plan:

Infrastructure projects to improve roads, bridges, airports, railways, ports, waterways and public transportation is estimated to be $621 billion over the next 15 years.

Homecare providers for aging and disabled Americans are expected to receive increased pay totaling $400 billion.

A total of $300 billion is slated for manufacturing, with $80 billion going toward semiconductors and medical manufacturing. Additionally, $20 billion will go to innovation hubs, $46 billion to federal purchases of electric vehicles, charging port and electric heat pumps for residential and commercial purposes.

Housing projects are expected to receive $213 billion in order to build more than two million housing units. These programs will be funded through community block grants, commercial efficiency tax credits and federal weatherization programs.

Large scale investment valued at $180 billion will go to research and development programs in the STEM fields – science, technology, engineering and math.

Rebuilding of water infrastructure projects will see $111-billion as aging pipes and water treatment systems are rebuilt in urban and rural areas.

Schools will be receiving $100 billion to upgrade existing buildings with HVAC, technology labs and school kitchen areas. Community colleges will receive an additional $12 billion for infrastructure improvements, along with $25 billion to upgrade child care facilities in select areas.

Access to the internet through digital infrastructure projects will be improved by $100 billion in federal spending.

Workforce investment will total $100 billion, with $40 billion going to dislocated workers (particularly in the areas of clean energy, manufacturing and caregiving), $12 billion to training for those previously incarcerated and $48 billion toward apprenticeships and job training programs administered by high schools and community colleges.

Finally, $18 billion will be invested in veterans’ hospitals and another $10 billion in modernizing federal buildings.

Now that the areas of investment are listed out for the next pending federal stimulus spending program, it is important to be aware that it will only take a few months for Congress and the executive branch to fine-tune the plan and sign it into law. As another $2 trillion is injected into the American economy, the questions that need to be examined are not whether you agree or disagree, but rather, where are your future business opportunities? What relationships do you need now to capitalize on this large-scale spending? Do your business plans position you directly or indirectly to benefit from the coming federal spending?

When it comes to answering these questions for your business, resources and professionals are available to assist. If you want to know more about this topic and/or how to best position your business, please contact me directly. FBN

By Chris Pasterz

Chris Pasterz is the economic development manager for Coconino County. Pasterz can be reached at cpasterz@coconino.az.gov or 928-679-7134.