April 5, 2023
Source: Deloitte
Excerpt:
Three major pieces of legislation were signed into law in late 2021 and 2022—the Infrastructure Investment and Jobs Act (IIJA), the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, and the Inflation Reduction Act (IRA).1 Together, these three new laws represent a massive investment in American competitiveness. They seek to rebuild American infrastructure, accelerate the transition to a green economy, and strengthen the domestic semiconductor industry—all while promoting job growth, workforce development, and equity.
The laws provide more than $2 trillion2 in authorized federal funding and incentives (figures 1 and 2) for up to 10 years.3 Funding alone won’t guarantee success, however. To achieve their goals, these laws will require successful execution at all levels of government.
The laws create unique execution challenges. Unlike a law that expands a benefit program or only funds infrastructure construction, these bills use a combination of direct spending coupled with indirect tools such as grants, tax incentives, and loan guarantees. These programs and indirect tools of government seek to alter market conditions and ultimately change the behaviors of the private sector, governments, and individuals. Moreover, execution will require collaboration between federal, state, and local officials, and involve working closely with businesses, educational institutions, and nonprofits.
The goals are lofty. The execution challenges are daunting.
This study explores the execution challenges that lie ahead, particularly the challenges of scale, complexity, and accountability. It describes not only the possible execution pitfalls, but a set of strategies that will help public officials—whether they be federal, state, or local leaders—maximize the positive outcomes from this set of new laws.
Read more: Executing on the $2 trillion investment to boost American competitiveness
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