WP "Biden Likely to Unveil $2.25 Trillion Infrastructure Stimulus Plan"

Education and Welfare Package Likely to Be Released as a Separate Bill After Contract Award

[Asia Economy Reporter Yujin Cho] According to an anonymous White House source, the Washington Post (WP) reported that U.S. President Joe Biden is expected to unveil a $2.25 trillion (approximately 2,554 trillion KRW) infrastructure stimulus package on the 31st (local time).

The upcoming stimulus package will primarily focus on physical infrastructure such as roads, ports, water supply improvements, housing, telecommunications, and manufacturing promotion, while stimulus measures related to expanding human infrastructure like education and welfare are expected to be submitted as separate legislation weeks later.

The $2.25 trillion infrastructure investment plan to be unveiled includes not only strengthening national infrastructure such as roads, bridges, and ports but also providing home care for the elderly and disabled, and expanding housing infrastructure, according to sources.

Specifically, $650 billion will be invested in rebuilding national infrastructure such as roads, bridges, highways, and ports, $400 billion for home care for the elderly and disabled, $300 billion for expanding housing facilities, and $300 billion for revitalizing American manufacturing.

Sources also indicated that the plan will include investing tens of billions of dollars to strengthen the national power grid, build 5G networks, and improve water supply systems. An anonymous source added, "Discussions on infrastructure investment are currently in the final coordination stage, and details may change."

The infrastructure stimulus package to be unveiled is part of President Biden’s "Build Back Better" project, which was a key pledge during last year’s presidential election. Given the massive scale of the stimulus, expected to be around $3 to $4 trillion, the strategy is to pursue legislation by dividing it into two areas considering funding and congressional circumstances.

White House Press Secretary Jen Psaki stated regarding the government’s infrastructure package, "After completing legislative work on the first package, the infrastructure stimulus, a second legislative package will be submitted weeks later."

The second package will mainly focus on human infrastructure targeting families such as children and workers, aiming to expand health insurance coverage, increase child tax benefits, and introduce paid medical leave.

An anonymous White House source said, "It has not yet been decided whether the two packages will proceed simultaneously or sequentially." WP predicted that the combined budget for the two packages will exceed $4 trillion.

President Biden is scheduled to visit Pittsburgh on the 31st to deliver a public address and announce the infrastructure investment plan along with a tax increase plan to secure funding. The tax increase is expected to take the form of a corporate tax hike and a wealth tax, as previously anticipated.

The corporate tax rate is being discussed to increase from 21% to 28%, and President Biden has mentioned that the wealth tax will not affect individuals with an annual income below $400,000.

This content was produced with the assistance of AI translation services.