Senate Passes Biden's Infrastructure Package
Earlier this week, the Senate passed a $1 trillion bipartisan infrastructure plan to rebuild America. This was a big win for President Joe Biden’s economic agenda, but it was also proof that he is fulfilling his campaign promises of bipartisanship.
This new legislation includes $550 billion in new funding for transportation, broadband, and utilities. It will assist with building up and funding parts of America that are crucial, like its roads, bridges, new climate initiatives, and broadband — things that have been badly neglected.
The legislation is set to be the largest federal investment into infrastructure projects in more than a decade. America has been neglected, and this legislation is expected to infuse funds into the backbone of the nation to ensure that America continues to be a leading nation.
The bill passed 69-30, which even included a vote from the Senate Republican leader, Sen. Mitch McConnell, who has been known to hold the opposition. Soon after this legislation was passed, Senate Majority Leader Chuck Schumer was seen meeting with Sen. Bernie Sanders to work on a budget resolution that would allow Democrats to approve a complimentary $3.5 trillion spending plan without Republican votes. This is an attempt to appease progressive House Democrats, who believe this $1 trillion infrastructure bill doesn’t provide all the funding that is needed to build up America's infrastructure — not only physical infrastructure but also human infrastructures like healthcare and childcare initiatives.
Schumer had this to say ahead of the final vote:
Today, the Senate takes a decade overdue step to revitalize America’s infrastructure and give our workers, our businesses, our economy, the tools to succeed in the 21st century.
The Senate is set to vote on the budget resolution in the upcoming days, which will hopefully lead the way to a bipartisan agreement for the proposed $3.5 trillion spending plan mentioned earlier. However, for now the passage in the Senate for the $1 trillion infrastructure bill is a step in the right direction.
Transportation Secretary Pete Buttigieg had this to say in a recent interview:
My department is ready the moment this bill becomes law to start deploying these resources and getting them out to communities.
As soon as this bill becomes law, we can expect the economy and certain stocks to be greatly affected. Already we have been seeing stock market movement as the bill was being passed by the Senate.
Steel stocks jumped higher the day ahead of the Senate vote on the bill, as it appeared that it was expected to pass. So you can imagine what will happen when it becomes law.
United States Steel Corporation (NYSE: X) produces and sells flat-rolled and tubular steel products, which could make the company the perfect option when it comes to supplying the materials needed to rebuild and upgrade the nation’s roads, bridges, railways, and utility infrastructure.
The demand for United States Steel Corporation could increase significantly if the company becomes one of those resources that Buttigieg mentioned.
United States Steel Corporation recently reported on its second-quarter financials, which indicated that it beat its revenue and earnings per share (EPS) expectations and included sales of $5 billion. Its statutory EPS was at $3.53 — a 24% increase from expectations. United States Steel Corporation’s rate of growth is expected to accelerate, with 75% annualized revenue growth to the end of 2021.
Government spending and contracts to fulfill its infrastructure needs could go to United States Steel Corporation, which could put the company in a favorable position and help it boost earnings and revenues and give investors a decent dividend payout.
There is still more that needs to be done, and the bill needs to be signed into law, but this is just a small aspect of what we can expect with investing in infrastructure.
Until next time,