In separate statements issued Wednesday, the American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA) applauded the plan’s intent and said it would support American-made steel. 

“The American Jobs Plan will result in an historic capital investment in America to improve our competitiveness, create millions of jobs, rebuild our infrastructure, address climate change and prepare our economy for the crises and the threats we will face in the future,” said SMA president Philip K. Bell.  

In addition, it would maintain strong made-in-USA preferences for purchasing decisions in federally funded infrastructure projects. 

“American steel production is the cleanest in the world, and the industry is essential to providing sustainable infrastructure solutions and good-paying jobs,” said AISI president and chief executive Kevin Dempsey. 

“Each one billion dollars in infrastructure spending requires about 50,000 net tons of steel, and each trillion dollars invested in infrastructure has the potential to create 11 million jobs in our economy over the next decade,” he added. 

Biden unveiled his infrastructure plan Wednesday during a visit to Pittsburgh, Pa. 

The plan calls for US$621 billion in transportation spending on existing roads and bridges and on improvements to railways, ports and waterways. It also provides US$300 billion for manufacturing, workforce training, research and development, and direct capital investment.

Although the AISI and SMA expressed support for the plan, they said they would like to see other funding mechanisms put on the table. 

Among other things, Biden is proposing to raise corporate income tax rate from 21% to 28%, reversing much of the cut that came during the previous administration. Both AISI and SMA said the administration should instead consider user fees.  

“In terms of funding, AISI’s view is that the best way to fund infrastructure is through a dedicated user fee rather than through the corporate income tax, revenues from which go to the general treasury. AISI has long advocated for bolstering the user fees that are dedicated to funding the Highway Trust Fund and other infrastructure funding mechanisms,” Dempsey said.  

Bell said SMA favors an “all of the above strategy that incorporates increased user fees, revenue from gas taxes and public-private partnerships.”

Both, however, said they would work with the administration to pass a plan that continues to support the use of American steel in American infrastructure projects.