The Biden Administration has released an outline of its $2 trillion infrastructure plan. It is important to note that this amount would be spent over a period of 8 years, i.e. $250 billion annually. Over that 8-year period, the plan would spend $300 billion on transportation projects, including:
- $95 billion on roads and highways
- $20 billion bike/ped projects
- $20 billion fixing neighborhoods destroyed by highways
- $80 billion for Amtrak and other rail projects
- $85 billion for public transit
Normally, these types of projects would be funded by the Federal gas tax. But the gas tax was last raised in 1992, and inflation has reduced revenues by half. If the gas tax had kept pace with inflation, the Highway Trust Fund would have an additional $37.5 billion to spend annually. If you do the math, $37.5 over 8 years is exactly $300 billion.
Even worse, the Biden Administration would finance all of this through deficit spending.