Last week in Pittsburgh, President Joe Biden gave a seminal speech on infrastructure investment, outlining his plan for US jobs. As someone familiar with Biden’s longtime leadership on infrastructure matters, much was familiar in terms of his distinct public-private partnership investment strategy and his diligent concern for practicalities. That said, it has been evolved, decidedly presidential, mission-driven and momentous.
The importance of the plan for financing, investment and business decision making is clear. There are certain ways to engage during the legislative process and position your government, private, or nonprofit business to benefit from the investment opportunity along the way.
Biden’s speech and plan can be understood in five parts.
First, the vision: for Biden, America is a land of possibility where nothing is beyond our capabilities if we work together. However, we simply cannot do it without organized infrastructure investments that equip us and allow us to work together, to rebuild better together, to be inventive together. It is a question of infrastructure.
Second, the drivers of the plan: America simply cannot compete globally, especially with China, without advanced manufacturing and an inventive base built on infrastructure. And, we have to compete. If America does not compete effectively and thus becomes too dependent on other countries, we will endanger our national security.
This would lead to allowing other countries to condition our ability, as a people, to realize America’s possibilities. This is the central idea behind Biden which poses the topical, high-stakes question of whether democracy will trump autocracy. Again, it’s an infrastructure issue.
For the president, competing means attracting business, which requires high-caliber airports, ports, water, communications and other infrastructure to power economic facilities. It means work well rewarded in a way that has not happened to date by strengthening unions with growing membership based on the opportunity to better rebuild the foundations of the economy.
Third, the breakdown by sector: there are four thematic areas.
Sectors organized by commerce include, among others, transport in its various modes (airports, passenger trains, freight railways, public transport systems, ports, waterways, bridges), a national network of recharging, wastewater, clean vehicles, the electrical network and What do you have.
Climate affects many of these areas, but also areas such as solar, wind and other alternative energy sources, battery technology, resilience, energy efficiency and other emerging technologies.
Connectivity encompasses areas such as caregiving, high speed internet, social and civic fabric, housing, facilities geared towards economic opportunities with significant perceptible benefits, education, veterans facilities, pipelines healthy water.
Inventiveness includes research and development, supply chain reengineering, advanced manufacturing transformation. Again, it is about infrastructure.
Fourth, the primary vehicle for operationalizing Biden’s vision is through his hallmark of mission-driven public-private partnerships. Biden has a distinctive approach to partnerships, an area in which he is familiar and very successful.
These partnerships are defined by federal, state and local governments; Investors; companies; Nonprofit; and unions together producing results for Americans. These groupings are diverse internally, requiring coordination between Biden’s close family of federal agencies. Biden’s partnerships are certainly a science, but, in equal measure, an art.
Fifth, the financing mechanisms that equip these partner companies to build relationships and fuel projects. Biden’s distinctive partnership approach can be implemented through 10 basic mechanisms. These mechanisms are closely related to each other in practice.
In this regard, Biden’s approach to supporting funding is best understood as synthetic funding that combines a large number of mechanisms from various agencies with external private and non-profit resources.
These mechanisms include: procurement authorities such as Buy American clauses and service agreements, formula disbursements, competitive grants, leases and leasing increases, loans, loans and guarantees loans including revolving funds, bonds and bond enhancements, equity zones and platforms, tax credits. , insurance (used sparingly in disaster contexts), as well as regulatory instruments such as licensing.
A successful Biden partnership program uses synthetic funding that combines the use of these vehicles.
The President is extraordinarily experienced and expert in synthetic funding, not only as a United States Senator performing constituent services or shaping the legislative process, but also in his role of executing partnership vehicles within the American Recovery and Reinvestment. Act.
As you advocate for programs and vehicles or prepare to use them successfully, ask these questions: How do they fit into Biden’s vision? How do they advance the engines of his plan? Do they fit into its defined sectors and how? Do they fit into Biden’s distinctive approach to public-private partnerships? What combination of vehicles is synthesized?
In other words, what’s your Biden story?
Even members of his opposition party will tell their own story of Biden, once the plan is passed, to requisition federal support for their local communities, their governors, their mayors, their businesses here and on the way.
If they’re eager to do it, so should you. So, right now, do it the Biden way.