Infrastructure stocks are on the move ahead of Joe Biden’s infrastructure announcement.
Right now, the ASCE has given us a C- for the nation’s infrastructure. While that’s up from a D, we still face plenty of issues. In fact, according to the ASCE, “there’s a $125 billion backlog on bridge repairs, a $435 billion backlog for roads and a $176 billion backlog for transit systems.”
However, there are hopes the US will deal with that issue.
Today, Biden is expected to announce details of his $2 trillion infrastructure plans, which could raise the corporate tax rate to 28% to pay for it. That, plus other measures could fund the plan within 15 years, says CNBC.
In addition, according to CNBC, the plan could:
- Put $621 billion into transportation infrastructure such as bridges, roads, public transit, ports, airports and electric vehicle development
- Inject more than $300 billion into improving drinking-water infrastructure, expanding broadband access and upgrading electric grids
- Put more than $300 billion into building and retrofitting affordable housing, along with constructing and upgrading schools
- Invest $580 billion in American manufacturing, research and development and job training efforts
In addition, according to CNBC, “If Democrats cannot get 10 GOP senators on board, they will have to try to pass the bill through budget reconciliation, which would not require any Republicans to back the plan in a chamber split 50-50 by party.”
The news could continue to benefit companies like US Steel (X), Nucor (NUE), US Concrete (USCR), Jacobs Engineering (J), Caterpillar (CAT), iShares Global Infrastructure ETF (IGF), the SPDR S&P Global Infrastructure ETF (GII), and H&E Equipment Services (HEES).