The Federal Reserve, the Treasury Department, and the Federal Housing Finance Agency (FHFA) are working on a $100 billion infrastructure plan that could provide $20 trillion in new construction.
The proposal, dubbed the Infrastructure Investment Bank (IIB), was approved by the Federal Open Market Committee (FOMC) in December, and it’s expected to be released to the public later this year.
While the Fed is expected to use the IIB to help finance the construction of infrastructure projects, it’s unclear what portion of that money would go to financing projects that will help boost the economy.
A number of factors may influence how much money the IIP would receive.
For instance, some projects that are eligible for infrastructure funding could be too costly or risky to finance.
In addition, the IIPB could have some limitations, such as requiring a level of federal investment that is too high.
The IIP proposal is designed to help spur the creation of jobs by supporting infrastructure investments that create jobs, and to spur investment in transportation, infrastructure, and research and development, according to the White House.
“The IIP provides additional stimulus to the U.S. economy, provides certainty to our financial markets, and creates economic growth,” said Fed Chair Janet Yellen in a statement announcing the IIA.
“We know that investments that support the development of infrastructure create jobs.
The III is designed with the same principles.”
Trump’s plan for infrastructure includes $200 billion for transportation and infrastructure spending, and $100 million for infrastructure research and innovation, according the White Senate Office of Management and Budget (OMB).
In addition to the infrastructure investment, the Trump administration also wants to expand the number of Federal HUB loans, which have helped to expand and diversify the economy over the past few decades.
The White House is also expected to release a set of proposals to support the construction and operation of the Keystone XL Pipeline.
President Trump, Vice President Mike Pence, Secretary of Transportation Elaine Chao, and Secretary of Housing and Urban Development Ben Carson will discuss the project in a press conference on Friday.
President Donald Trump and Vice President Joe Biden hold a news conference at the White Trump Tower in Washington, DC, December 15, 2020.
President Joe P. Biden and Vice-President Joe Biden meet with reporters at the US Capitol in Washington DC on December 15th, 2020 to discuss the Keystone Pipeline.
(Photo by Chip Somodevilla/Getty Images)