• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

3

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

3

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Politics

How Congress plans to pay for the new infrastructure deal

Megan Leonhardt
By
Megan Leonhardt
Megan Leonhardt
Down Arrow Button Icon
Megan Leonhardt
By
Megan Leonhardt
Megan Leonhardt
Down Arrow Button Icon
July 29, 2021, 1:30 PM ET

Yesterday Republicans and Democrats announced they finally reached a deal to move ahead with a $1 trillion infrastructure package that would provide $550 billion in new funding for projects including roads and bridges, public transit, railroads, airports, and even high-speed internet. 

“I’m pleased to see today we were able to come together on a core infrastructure package — this is not non-infrastructure items — without new taxes and with the commitment from Republicans and Democrats alike that we are going to get this across the finish line,” Sen. Rob Portman (D-Ohio) said in remarks Wednesday. 

But if Congress isn’t raising taxes, how are lawmakers planning to pay for all this infrastructure funding? The White House said in a statement that the legislation will be financed using unspent unemployment insurance relief funds and federal emergency relief funds.

The unused relief funds from 2020 emergency relief legislation currently total about $1 trillion, according to Marc Goldwein, a senior vice president and policy director with the Committee for a Responsible Federal Budget.

“Roughly speaking, there’s probably about a $1 trillion of COVID money that’s been authorized, but hasn’t been allocated or disbursed,” Goldwein tells Fortune. “That does not mean there’s $1 trillion available to repurpose —some of that money hasn’t been spent because it just disperses over time,” he says, adding that includes measures such as the advanced child tax credit payments and enhanced unemployment benefits.

That means the amount of money from these unused relief funds that will actually be repurposed is “probably pretty small,” Goldwein says, likely less than $100 billion and closer to $50 billion.

In addition to unspent relief funds, the White House also noted that the legislation would tap targeted corporate user fees, as well as take advantage of proceeds from the increased enforcement of cryptocurrency taxes and reducing the IRS tax gap.

Lawmakers also plan to collect on 5G spectrum auction proceeds and a host of various fees and sales, including the strategic sale of petroleum reserves, profits from extending expiring customs user fees, and reinstating Superfund fees for chemicals, the White House said previously. States will also be allowed to sell and purchase toll credits, which are generated when states use toll revenues to invest in transportation projects.

The legislation is also expected to generate revenue from higher economic growth as a result of the investments, which lawmakers say will offset the cost.

But details on exactly how these financing tools would work or how much they would raise are still unclear. The Tax Foundation finds that the bill’s proposed spending on infrastructure would only generate a small amount of additional revenue, about a 5% return on investment. They estimated the previous $579 trillion package, which has been trimmed to $550 trillion now, would generate about $67 billion in revenue over 10 years.

“I think likely the bill is actually about half paid for,” Goldwein said.

Lawmakers, however, contend that the legislation would not be a drain. “This bill is paid for,” Portman said “We do it without raising taxes. We do it in a way that’s going to help in terms of our economy long-term, to make our economy more efficient, more productive.”

The Senate voted Wednesday night to start the process of getting the infrastructure plan through Congress, but the plan is not guaranteed to be implemented at this point and Senate Majority Leader Chuck Schumer (D-N.Y.) has noted that lawmakers may need to work through the weekend again to get it done.

Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.

About the Author
Megan Leonhardt
By Megan Leonhardt
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

Digital sovereignty isn’t the same thing as digital isolation. Asia’s governments should be careful
Commentarydata sovereignty
Digital sovereignty isn’t the same thing as digital isolation. Asia’s governments should be careful
By Leonard LimJune 10, 2026
5 hours ago
The curse of Trump watching sports in person: the home team seems to always lose
Arts & EntertainmentDonald Trump
The curse of Trump watching sports in person: the home team seems to always lose
By The Associated Press and Will WeissertJune 10, 2026
6 hours ago
‘I love the inflation’: Trump is ‘not concerned’ about inflation hitting 4% for the first time since 2023. ‘The numbers were great’
EconomyDonald Trump
‘I love the inflation’: Trump is ‘not concerned’ about inflation hitting 4% for the first time since 2023. ‘The numbers were great’
By The Associated Press and Christopher RugaberJune 10, 2026
7 hours ago
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI build-out
Future of WorkMeta
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI build-out
By Jacqueline MunisJune 10, 2026
9 hours ago
platner
PoliticsElections
Graham Platner easily prevails over attempts to derail progressive Senate candidacy in Maine
By Patrick Whittle, Kimberlee Kruesi and The Associated PressJune 10, 2026
12 hours ago
swiss
EuropeImmigration
Switzerland to cast world’s first ever vote on whether to cap population
By Jamey Keaten and The Associated PressJune 10, 2026
12 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
1 day ago
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
8 hours ago
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
Investing
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
1 day ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.