Members of a bipartisan group of senators said they had reached an agreement on an infrastructure proposal that would be fully paid for without tax increases, pitching the plan to other lawmakers and the White House as they try to craft compromise legislation on the issue. While the group of 10 senators didn’t reveal details of the plan in its statement, people familiar with the agreement said it called for $579 billion above expected future federal spending on infrastructure. The overall proposal would spend $974 billion over five years and $1.2 trillion if it continued over eight years. To move forward in Congress, the plan would need the buy-in from a broader group of Republicans and Democrats, as well as the White House. In recent days, some Democrats have indicated they are skeptical that the bipartisan talks will result in a large enough package. The compromise package may be paid for by indexing the gas tax to inflation. The federal gasoline tax hasn’t been increased since 1993. The new proposal is also expected to be paid for in part by repurposing funds from previous Covid-aid packages.

Among Democrat and Republican proposals alike, a nice round number continually pops up on what it should cost to give all Americans access to, and full use of, digital technologies: $100 billion. Spectacular as this sum is, it is also spectacularly off the mark and a mirage. My team’s analysis estimates the government needs to spend at least $240 billion. Bridging the digital divide will require creative ways to enhance three key ingredients: money, access infrastructure, and execution. On money, Big Tech should pay through a tax on targeted digital advertising. Facebook, Alphabet, Amazon, and Apple should all be encouraged to offer favorable deals on their own internet access infrastructure. Finally, the federal government should  organize bids to solicit the best public-private partnership solution for each gap area. It can set state targets and tie subsidies, grants and additional incentives for state and local governments to hit them.

[Bhaskar Chakravorti is the dean of global business at Tufts University’s Fletcher School of Law and Diplomacy]

Sens Patty Murray (D-WA), Rob Portman (R-OH), and Angus King (I-ME) introduced new bipartisan legislation aimed at closing the growing digital divide in communities across the country. The Digital Equity Act of 2021 would create new federal investments targeted toward a diverse array of projects at the state and local level. It strengthens federal support for efforts to help ensure students, families, and workers have the information technology capacity needed to fully participate in society by establishing grant and policy programs to be administered by the National Telecommunications and Information Administration to promote digital equity nationwide:

• Building Capacity within States through Formula Grants: The legislation creates an annual $125 million formula grant program for all 50 States, the District of Columbia, and Puerto Rico to fund the creation and implementation of comprehensive digital equity plans in each State.
• Spurring Targeted Action through Competitive Grants: The legislation also creates an annual $125 million competitive grant program to support digital equity projects undertaken by individual groups, coalitions, and/or communities of interest.
• Supporting Research and Evidence-Based Policymaking: The legislation tasks NTIA with evaluating digital inclusion projects and providing policymakers at the local, state, and federal levels with detailed information about which projects are most effective.

The Digital Equity Act was first introduced in 2019 to help improve broadband adoption and bridge the digital divide. Senators Murray, Portman, and King will be advocating for key provisions of the proposed legislation to be included in any forthcoming infrastructure package.