Construction on the new US Capitol is scheduled to begin later this month, and the construction process is expected to create the biggest single economic impact in the nation’s history.
But a construction boom that could be worth $400bn, according to an analysis from McKinsey & Co. and a joint analysis by the New York Stock Exchange and the New Jersey Department of Commerce, could take a long time to reach fruition.
The study by McKinsey and New York-based research firm McKinsey Global Institute found that while construction could be completed in just over a decade, it could take longer to get a full project out the door.
The $400-billion figure is based on the total amount of work to be done to construct the Capitol.
McKinsey estimates that the cost of the Capitol, including its $250-billion budget, will be $270 billion.
That’s based on a $250 billion budget for the House of Representatives, $170 billion for the Senate and $130 billion for all the states and territories.
McKenzie estimated that if the Capitol were constructed at its current construction schedule, the $270-billion price tag would be more than twice as high as the $190-billion estimate for the current fiscal year.
McLennan’s report also found that the overall cost of constructing the Capitol could exceed $500 billion, or $400.8 billion, even with a low estimate of the federal government’s cost of building the Capitol as the base.
The analysis comes on the heels of reports from the New Yorker and the Associated Press that show a $200-billion cost overrun on the Capitol’s construction could come in at $40 billion.
The new report comes as lawmakers and governors grapple with a $1.1 trillion spending bill that has stalled on Capitol Hill and threatens to force the U.S. into default on its debts.
The Capitol will be the focal point of the first national debate about the nation and the economy.
But with the deadline to reach a budget deal looming, many lawmakers are concerned about the cost.
McConnell has made building the new Capitol a top priority.
But his efforts have been stymied by the ongoing budget stalemate.
The U.N. General Assembly passed a $50 billion package on Tuesday that includes $50 million in aid for the construction and operation of the new capital.
The package also includes a $5 million payment to Congress for the Capitol renovation, $500 million for a temporary loan to help cover the costs of building new infrastructure, $20 million to pay for additional security at the new headquarters and $25 million to fund additional security in the building.
The United States has been the largest contributor to the cost to build the Capitol and to the federal budget, according the report.
McClennan estimated that building the US capitol would cost $40.7 billion.
The New York and New Jersey delegations will be responsible for paying the bill.
The report, released on Wednesday, estimated that construction of a new capitol will cost $400 million.
The Washington Post’s Paul Kane contributed to this report.