The $1.2 trillion infrastructure bill that the Senate passed today–roughly half of that represents new spending–still faces a tough go in the House of Representatives where progressive Democrats have criticized the measure as light on dollars to fight global climate change. That spending has been pushed into a second infrastructure bill, which would also include money for expanding Medicare and improving access to childcare among other “social” infrastructure spending, which the Senate actually took up today. Most political pundits think that efforts to pass a “social” infrastructure bill using reconciliation will be enough to secure all the votes needed to pass the traditional infrastructure bill in the House.
The bill passed today would include more than $110 billion to replace and repair roads, bridges and highways, and $66 billion to boost passenger and freight rail. The plan includes an additional $55 billion to address problems in the U.S. water supply such as continued use of lead pipes despite conclusive evidence that lead in water pipes leads to cognitive impairment in children. It allocates $65 billion to modernize the country’s power grid and $7.5 billion to build out a national network of electric-vehicle charging stations. The bill earmarks $47 billion to respond to wildfires, droughts, coastal erosion, heat waves and other climate crises.
As you might expect, traditional infrastructure stocks rose on the news aggregates producers Vulcan Materials (VMC) and Martin Marietta Materials (MLM) gained 2.24% and 2.40%, respectively, at the close on August 10. Construction equipment providers also rose with Terex (TEX) up 2.42%, Caterpillar (CAT) ahead 2.48%, Deere (DE) higher by 1.98% and United Rentals (URI) ahead 2.31%.
Alternative energy stocks presented a mixed picture with lithium miner Albemarle (ALB) up 3.31% and American Super Conductor (AMSC) higher by 6.53%. SolarEdge (SEDG) managed a 0.50% gain as of the close. but SunRun (RUN) was down 3.28%.
