President Biden signed the $1.2 trillion infrastructure bill into law earlier this week. The bill, which is being touted as a bipartisan success, will provide funding for a wide array of projects such as improved internet access, supply chain help (including the much discussed bottle neck issues at our nation’s ports), rebuilding roads and bridges, upgrading freight and passenger rail systems, improvements to the electric grid and water systems, building 500,000 electric vehicle charging stations across the nation, and more. Many in Washington say the bill is necessary to remain competitive in the world, with others such as China making big investments in infrastructure and efficiency.
The signed bill is less expensive than the $2.3 trillion President Biden initially proposed. The reduction was likely needed to gain support from both sides of the isle, with 19 Republican senators and 13 Republican House members voting in favor of the reduced bill.
In theory, such a large bill creates opportunities in the markets as certain industries will benefit over others. However, talks of the bill have occurred over the past many months, which suggests that the benefits are no surprise and may already be priced in. Call us if you have questions on how this bill may affect your portfolio.
The White House has provided the following link for those that want to learn more: https://www.whitehouse.gov/bipartisan-infrastructure-law/.
