Jake Medwell, the founding partner at 8VC and president of Skyline Policy Risk Group, Loren Smith reviewed potential risks on infrastructure legislation in Washington. In the interview they revealed the latest trends being increased inflation, the spending bill in 2021 will range between $1trillion and $2trillion and a lower attached tax hike compared to previous proposals.
On the potential level of spending on boosting infrastructure, Jake Medwell and Loren Smith believe the type of infrastructures will determine spending. There is expected focus on health care, education and other social amenities while it is unclear what amounts will be given to transport and others. In 2009 physical infrastructure like roads received less 3% only yet it was supposed to be prioritized. Currently roads and bridges according to Biden’s plan are set to receive less than 10% but it is difficult to estimate the exact provision.
In connection to this, there is no expectation for any major changes to the infrastructure bill if the democrats are doing it alone. They will include funding for the types of infrastructure they consider human infrastructure. The bill is unlikely to include the traditional highway bill that supports transport systems.
They explained that Congress authorizes federal surface transport programs every 5 or 6 years. It usually contains policy changes like changes from analog to digital logging devices for truckers. Such reauthorization requires bipartisan support. If there is no consensus between the Democrats and Republicans, the democrats will go on to implement the Biden’s plan and organize a deal later for the highway bill.
Learn more about Jake: https://www.f6s.com/jake-medwell