This year continues to show us that it is still increasingly difficult to predict the future. That makes all types of planning for the future - planning for retirement, long-term care, disabilities or death- more complicated as well.
The current economic environment involves high inflation rates, hiring difficulties, increasing real estate values and supply bottlenecks. Congress recently passed an infrastructure and spending bill which creates several changing economic situations that color the path that your planning should take going forward. Some key provisions aimed at improving lives for the elderly were cut prior to the final passage of the bill. Let’s first take a look at what was included and then those items that were cut.
There are two main pieces of legislation - a $1.2 trillion bipartisan infrastructure bill and a second $3.5 trillion Democratic infrastructure and social funding bill. The $1.2 trillion bill (passed on November 5, 2021) creates the largest infusion of federal investment into the infrastructure projects in over a decade. Projects will include updating infrastructure, addressing climate risks and modernizing the power grid.
The 5 highlights of that $1.2 trillion bill include:
1. $110 billion for roads and bridges
2. $66 billion for railroads, upgrades and maintenance of our passenger rail system (Note: it does NOT include funding for high-speed rail)
3. $65 billion for the power grid to update power lines and cables,
4. $65 billion to expand broadband in rural areas and low-income communities
5. $55 billion for water infrastructure, including $15 billion for lead pipe replacement. Also, there is a ton of additional funding for cybersecurity, public transit, safety, the environment, airports, electric vehicle charging stations, electric school buses and climate change.
Now, on to the second proposed bill. The over 2,400-page bill includes a 10-year spending plan that addresses major investments in health care, childcare support and education, addressing the climate crisis and making further investments in infrastructure.
The key details of that $3.5 trillion bill include:
1. $67 billion is earmarked for climate initiatives where funding is to be applied to low-income solar technologies, clean water access and affordability and investments in clean vehicles and energy efficient buildings.
2. $135 billion is to go towards agriculture conservation to include programs for climate research, child nutrition and reduce carbon emissions.
3. $198 billion is to be applied to clean energy to enhance the federal procurement of energy efficient materials and provide financing for domestic manufacturing of clean energy and auto supply chain technologies.
4. $332 billion is to be used for housing affordability, public housing investments, revitalization projects, and rental assistance in transit improvements.
5. $726 billion of funds are to be applied to education through providing quality childcare for working families, universal pre-K for children ages 3-4 and tuition free community college.
What is left out of the legislation?
- The latest bill leaves out Biden's proposal to spend $400 billion to bolster caregiving for aging and disabled Americans.
- It cuts out portions related to providing more opportunities for seniors to receive care at home through community-based services or from family members.
- It also removed portions related to improving the wages of home health workers, who now make approximately $12 an hour as well as taking away the opportunity for caretakers to join a union.
- The bill also leaves out the $18 billion originally proposed to modernize Veterans Affairs (VA) hospitals, which are on average 47 years older than private-sector hospitals.
In these uncertain times, building a knowledgeable team of experts is important to ensure proper planning. Start by discussing your situation with the estate planning attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or register for an upcoming free webinar using the link below:
https://attendee.gotowebinar.com/register/1590073452636680975
https://attendee.gotowebinar.com/register/4535033983774254351
https://attendee.gotowebinar.com/register/4694111326119172108
https://attendee.gotowebinar.com/register/3684557341681305356
