Justice 40: Advancing Equity Through Infrastructure Investment

The federal Infrastructure Investment and Jobs Act (IIJA), signed by President Biden in November 2021, will bring at least $45 billion to California for investments in transportation, communications, water, clean air, and other infrastructure projects. And with the Inflation Reduction Act on the verge of passage, California stands to benefit from an infusion of federal funds for climate action and drought relief.

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States have wide discretion in choosing the types and locations of projects to be funded and hence will play a key role in determining how the $1.2 trillion in federal infrastructure funds will be spent. The Biden administration’s implementation guidance urges states to invest the funds “equitably”, following its Justice40 Initiative, which calls for delivering 40 percent of the benefits of federal investments to disadvantaged communities.

Assembly Bill (AB-2419), authored by Assembly member Isaac Bryan, would write that goal into state law by mandating that 40% of the IIJA funds directly benefit communities defined as environmentally and socially disadvantaged. The Act calls for an additional 10% of the federal funds to directly benefit communities defined as low-income. The remaining half of IIJA funds could be used for infrastructure projects without restriction.

The Act also would guarantee high labor standards and foster the creation of quality jobs for underrepresented groups. The Strategic Growth Council would be charged with implementing the law. AB 2419 also establishes the Justice40 Committee, comprised of representatives from environmental justice organizations, labor, and disproportionately impacted communities, to monitor implementation and issue recommendations for equitable and sustainable infrastructure investment.

The Gender Equity Policy Institute analyzed demographic data on the communities targeted for infrastructure investment under AB 2419 to assess the likely distribution of funds by race/ethnicity, gender, and region.

Our findings show clear benefits to communities that have been disproportionately harmed by decades of discriminatory practices in infrastructure siting and building. Roughly three-quarters of those living in communities targeted for investment are Black, Latino, Asian American, or Native American. Women of color particularly stand to benefit from the targeted infrastructure investment.

AB-2419 received a rating of 94% on GEPI’s intersectional gender equity scale, indicating that, if enacted, it would powerfully advance gender and racial equity in California. By targeting infrastructure investments to historically under-served and marginalized communities, AB-2419 provides a blueprint for an equitable and transformative approach to infrastructure investment.