The budget of the United States government for the fiscal year 2023 was released a few short weeks ago, and friends, a lot is going on with it.
The $5.8 trillion spending plan aims to reduce poverty and beef up health initiatives while reducing the deficit by $1 trillion. But President Joe Biden’s plans also mention something that doesn’t come up as often in a budget discussion - expanding America’s productive capacity.
That’s right. Supply chains, typically an afterthought in most people’s minds, get a VIP spot in the budget this year. It might be hard to believe. But there it is, right in the middle of the Whitehouse.gov Fact Sheet.
The budget allocates $142 billion for the Department of Transportation next year. And with good reason! With all the tumult that supply chains have experienced over the past two years, there are a lot of areas that could use a little extra support. Roads, ports, rail, emerging technology…it all has to be ready to support the exceptionally high levels of freight expected to filter through supply networks next year.
So, what is going to get prioritized next year? Here are a few of the supply chain initiatives in the 2023 federal budget:
The government allocates $1.5 billion towards the Rebuilding American Infrastructure with Sustainability and Equity and National Infrastructure Project Assistance grant programs, which funds projects to improve highways, rail, and ports.
That’s a big number. But the budget also requests another $230 million for the Port Infrastructure Development Program, which will (you guessed it) build out port infrastructure to help accommodate more and larger container ships.
Of course, reaching a port is only the beginning of a container’s journey. Once on shore, it still has to move inland. And there’s funding for that, too.
Between the National Highway Freight Program and the National Highway Performance Program, Congress could approve $32billion for construction projects that improve our highway system. Another $27.5 million has been requested for the Corporate Average Fuel Economy program to support truck efficiency standards.
The 2023 budget seeks $1 billion to create a national network of electric charging stations under the National Electric Vehicle Infrastructure Formula Program and another $12 million to support the testing and development of autonomous vehicles.
As we mentioned above, rail gets covered in the National Infrastructure Project Assistance grant. But the president has asked for another $500 million for the Consolidated Rail Infrastructure and Safety Improvements Program, with an eye toward improving rail efficiency.
This is an aspect of the supply chain that we don’t touch on as much. But the 2023 budget allocates nearly $700 million to build out domestic manufacturing capabilities, including some that we’re pretty excited about. For example, $200 million will go towards a Department of Energy Solar Manufacturing Accelerator to build up solar capacity in our domestic supply chains
The past two years have been a rollercoaster for logistics professionals and the clients that we work to serve. We’re hopeful that these initiatives will help clear up supply chain disruptions and free up capacity, so 2023 will be a success!