President Joe Biden revealed details of the first part of his more than $2 trillion infrastructure plan on Wednesday. The first portion includes provisions delivering $100 billion aimed at closing the digital divide and billions more to foster R&D for innovation in areas like semiconductors. The second portion is expected to be released in April, according to The Washington Post.
During a speech in Pittsburgh, Biden said: “Millions of Americans lack access to high-speed broadband internet, including more than 35 percent of rural America. This [plan] makes sure every single American has access to high-speed affordable internet. Americans pay too much” for such service now, he explained. “We’re going to drive down the price and make it easier for families,” he said.
According to a White House fact sheet, the Biden plan calls for building high-speed broadband infrastructure “to reach 100 percent coverage.” The President’s plan prioritizes building “future proof” broadband infrastructure in unserved and underserved areas. “It also prioritizes support for broadband networks owned, operated by, or affiliated with local governments, non-profits, and co-operatives—providers with less pressure to turn profits and with a commitment to serving entire communities,” according to the White House.
The plan ensures funds are set aside for infrastructure on tribal lands and that tribal nations are consulted in program administration. Along the way, “it will create good-paying jobs with labor protections and the right to organize and bargain collectively,” notes the plan.
However, the way Biden plans to pay for what the Administration is calling the “historic” effort is a gamble, notes The Washington Post. Biden’s betting that Americans will support as much as $3 trillion in new tax hikes for rich individuals and corporations. Biden would like to see progress in Congress on the effort before Memorial Day and will consider breaking up the legislation into more parts if needed.
Republican lawmakers criticized the effort after being briefed on the details earlier. Senate Minority leader Mitch McConnell (R-KY) expected the final effort “to be a Trojan horse for massive tax hikes and other job-killing left-wing policies.”
The proposal calls broadband the electricity of the 21st Century. It discusses the 1936 Rural Electrification Act, when the federal government made a “historic investment in bringing electricity to nearly every home and farm in America,” according to the White House.
“Looking backwards to 1930s utility regulation and our nation’s crumbling power grid as a model for high-speed internet is a mistake. This isn’t building back better, this is barreling towards a broadband blunder,” tweeted FCC Commissioner Brendan Carr, a Republican, on Wednesday.
Democrats on the Hill defended the President’s proposal. House Majority Whip James Clyburn (D-SC) said the big price tag recognizes the severity of the nation’s crumbling infrastructure and the need for historic investment. “I don’t know why people think you’re going to get broadband into American homes by clipping coupons from the Sunday papers,” he told The Post. “You got to spend the money.”
As for the tax hikes, Clyburn said: “People are already going to grumble about taxes. They are going to grumble no matter what.”
Industry had varied reactions to the proposal.
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