What to Know About Senate Republicans’ Infrastructure Counter-Proposal 

The GOP plan fails to meet the urgency of the moment and leaves a million jobs on the table.

The GOP’s proposal would leave more than 1 million jobs on the table by stripping key funding for clean energy and caregiving.

  • The American Jobs Plan would create between 1 million and 1.2 million jobs per year through investments in clean energy. Senate Republicans’ plan eliminates all funding for clean energy jobs.

The GOP wants to burden everyday Americans with the cost of infrastructure investments — and let corporations that ship US jobs overseas off the hook.

  • Senate Republicans’ proposal would let businesses that ship U.S. jobs overseas off the hook — and instead, would fund infrastructure by:
    • Raiding Covid relief funding meant to keep essential workers like firefighters and police on the job.
    • Gutting the child tax credit — a life-changing investment that is on track to cut child poverty in half.
    • Raising health insurance premiums by cutting Obamacare subsidies.
    • Imposing user fees of unspecified size on middle-class Americans.

The GOP proposal is only one-fourth the size as advertised. 

  • Senate Republicans’ proposal is mostly comprised of baseline spending, which would happen with or without new legislation. Though they are advertising this as a $1 trillion plan, it’s actually only $257 billion in new spending — just 13% of President Biden’s proposal. 
  • Comparing President Biden’s plan — which is entirely comprised of new spending — to this budget gimmick is comparing apples to oranges.

The GOP plan would hurt our economy and burden everyday Americans by clawing back funding from the American Rescue Plan’s funding, including: 

Raiding Covid relief funding meant to keep essential workers on the job.

  • Senate Republicans’ proposal calls for repurposing the aid state and local governments need to survive the pandemic and get our economy back on track. These funds are keeping police, teachers, and firefighters on the job, addressing local challenges exposed by the pandemic, and ensuring state economies can recover quickly.
  • We’ve seen the results of Republicans’ strategy before: In 2009, Republicans cut billions of dollars of state and local aid from the American Recovery and Reinvestment Act, and the results were devastating:
  • States were forced to make disastrous cuts to education. Ten years after the great recession, state financial spending for higher education was still down 13%. In 2016, funding for K-12 education was lower in 29 states than it had been in 2008 — down at least 10% in nine of those states.
  • In the wake of the recession, state aid to localities was down by 5.3% — putting a strain on local budgets and exposing cities to greater risk of financial problems.
  • Overall, it took nearly a decade for state and local governments to return to pre-crisis employment levels.

Gutting the Child Tax Credit Expansion — preventing millions of children from being lifted out of poverty.

Raising healthcare premiums by gutting Affordable Care Act subsidies put in place in the midst of a deadly pandemic.

The GOP plan strips crucial investments in our economy, communities, and veterans. 

Here’s what the GOP plan strips from the American Jobs Plan:

  • $137 billion in funding to upgrade and build new public schools
  • $400 billion for home and community based care for elderly and disabled people
  • $580 billion in manufacturing, research and development, and jobs training to regain U.S. manufacturing’s competitive advantage
  • $18 billion for the modernization of Veterans Affairs hospitals and clinics
  • $100 billion for updates to our electric power grid, making it more resilient to outages while lowering energy bill costs
  • $213 billion to create millions of affordable, sustainable places to live and make much needed repairs to public housing
  • $35 billion for high-speed broadband infrastructure to ensure affordable, reliable, broadband for every American
  • $63 billion for water infrastructure upgrades to ensure Americans clean drinking water
  • $170 billion for electric vehicle infrastructure to support American workers and win the EV market
  • $36 billion to improve infrastructure resilience and defend vulnerable communities
  • $19 billion to reconnect communities cut off by historic investments
  • $15 billion in public transit investments to modernize public transportation systems