The BlueScope Steel Limited (ASX: BSL) share price could get a boost later this week thanks to US President Joe Biden's US$3 trillion ($3.9 trillion) recovery plan.
Biden is expected to announce the first part of his new stimulus plan on Thursday our time, according to Forbes. The new plan is called Build Back Better and is a follow up to the US$1.9 trillion American Rescue Plan.
It is expected that the first instalment of Build Back Better will focus on infrastructure, which includes rebuilding railways and bridges.
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BlueScope's Build Back Better share price boost
That requires a lot of steel and that's good news for BlueScope as it has a significant presence in the US through its $1 billion acquisition of North Star.
The BlueScope share price may not be the only beneficiary. Other ASX building material companies with exposure to that market include the James Hardie Industries plc (ASX: JHX) share price and Boral Limited (ASX: BLD) share price.
The Biden administration has been tight-lipped on details of the Build Back Better plan so far. It's believed that the second part of the plan will be unveiled sometime next month.
What is part two of Build Back Better?
Part two of the ambitious stimulus will focus on healthcare and childcare, according to White House Press Secretary Jen Psaki.
"We're not quite in the legislative strategy yet, but I will say that I don't think Republicans and the country think we should be 13th in the world as it relates to infrastructure, roads and railways," Psaki was quoted by Forbes.
"That's a lot of what the President will talk about this Wednesday; then he will have… another proposal that he will put forward in just a couple of weeks that will address a lot of issues that American people are struggling with–childcare and the cost of healthcare."
Other ASX shares that may benefit from Biden's stimulus
While it's too early to say what the healthcare component will be, there is a chance that some other ASX shares can benefit too.
This include the CSL Limited (ASX: CSL) share price and Sonic Healthcare Limited (ASX: SHL) share price. Both have a material presence in the US.
But it isn't all good news under Biden's big spending plan.
The downside to big spending stimulus
Big tax hikes could be on the cards as he has made no secret about his desire to get companies and wealthy taxpayers to fund his programs.
There's speculation that US corporate tax could jump from 21% to as much as 28%. If that comes to pass, it could trigger a long-awaited sharp drop in the US share market.
That will surely drag the S&P/ASX 200 Index (Index:^AXJO) lower in its wake.
