Treasury Secretary Janet L. Yellen’s remarks on the Treasury Department’s new analysis of the bipartisan infrastructure bill

Treasury Secretary Janet L. Yellen’s remarks on the Treasury Department’s new analysis of the bipartisan infrastructure bill

As prepared for delivery

Welcome everyone. I’m pleased to mark the second anniversary of the bipartisan infrastructure law, with a new Treasury Department analysis showing the tremendous impact of the Biden administration’s investments in infrastructure.

Investment in public infrastructure is essential for economic growth. According to one analysis, a 10% increase in public capital investment in basic physical infrastructure increases productivity by more than 2%. Largely because of this increase in productivity, public investment in infrastructure increases national output by up to 1.2% in the long run for every 10% increase in public capital investment.

However, infrastructure investment in the United States has declined sharply in recent decades. Their share of the economy declined in 42 states between 2009 and 2021, including during the early days of the pandemic recovery.

Two years ago, a bipartisan infrastructure bill changed that. New Treasury Department analysis shows the two-year increase in state and local capital investment as a share of GDP is the largest since 1979. The Biden administration has announced nearly $400 billion in funding, including more than 40,000 projects and awards. Americans see changes in their communities. Bridges are being repaired. Roads are being paved. Airports are being improved.

These investments strengthen our country’s economic strength and long-term resilience. They also expand economic opportunities for people and places that have historically been neglected.

It is pleasing to see this in the data just two years after the adoption of the International Labor Code. The investments create well-paying construction jobs, many of which are union jobs that do not require a college degree. The Treasury Department’s new analysis shows that funding is going where it’s needed most across the country, not just to the coasts or wealthy communities. States with the lowest public infrastructure ratings receive more than twice as much funding per capita as states with the highest public infrastructure ratings. Funding tends to reach states with lower median household incomes. This is the opposite of the usual pattern, which is that high-income countries invest more in infrastructure.

Funding is also being distributed more widely. Take public transportation spending, which is critical to achieving equity and addressing climate change, as less affluent Americans are more likely to rely on public transportation, and reliable public transportation encourages everyone to use less gasoline. In 2019, just five states accounted for about two-thirds of the total investment in public transit. Our analysis shows that these five states accounted for only about 40% of BIL project funding. Ten states receive transit funding from BIL, the per capita amount of which is more than ten times the annual transit investment before the pandemic. Ten additional states receive five times that amount. 18 other states receive twice that amount.

The Economic Action Act, along with the Chips and Science Act and the Inflation Control Act, embodies the President’s and my own belief that American economic strength derives from our middle class, and that we must seek to grow our economy from the bottom up and from the middle out. , not top to bottom. This is the essence of the president’s economic strategy – what we call Bidenomics. It is also consistent with what I have called modern supply-side economics, increasing our long-term production capacity while expanding economic opportunities across the country and addressing challenges such as climate change.

Our legislation has a transformative impact. Beyond the impacts I highlighted today, real manufacturing buildup has doubled since the end of 2021, and private sector investment in key sectors like electric vehicle manufacturing is reaching communities that are often overlooked.

I am optimistic about the long-term economic momentum in the American economy, and I believe our administration’s economic plan will keep us on track. Thank you for joining today.

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