Big Beautiful Bill Sparks Growth in Infrastructure and Defense Sectors Amid Bipartisan Backing

The "One Big Beautiful Bill Act" (OBBBA), signed into law in July 2025, has ignited renewed interest in U.S. infrastructure and defense stocks, driven by bipartisan support for key provisions despite broader legislative gridlock. With allocations totaling over $144 billion for defense and critical investments in rural broadband, the bill offers investors a roadmap to sectors poised for stable growth. Here's how political tailwinds are shaping opportunities—and risks—to consider.

Infrastructure: Rural Broadband as a Growth Catalyst

The OBBBA's infrastructure provisions, particularly those targeting rural broadband, have garnered cross-party approval. While the bill faces backlash over cuts to Medicaid and SNAP benefits, polling data highlights strong bipartisan backing for rural connectivity. A **** shows 68% of voters support federal funding for high-speed internet in underserved areas, with 72% of Republicans and 65% of Democrats agreeing. This reflects a rare consensus on modernizing critical infrastructure.

Key sectors to watch:
- Telecom and broadband providers: Companies involved in deploying fiber-optic networks, such as AT&T (T) and Verizon (VZ), stand to benefit from $50 billion allocated to border security infrastructure and broader rural connectivity.
- Construction firms: Firms like Bechtel and Fluor Corporation (FLR) may see demand rise for projects under Title IV's air traffic control and space launch infrastructure provisions.

However, investors should note that the bill rescinds $100 million from the Green and Resilient Retrofit Program for multifamily housing, potentially slowing progress in affordable housing. This underscores the need to focus on companies directly tied to funded projects, such as .

Defense: A Fortified Priority Amid Geopolitical Tensions

The OBBBA's defense allocations—$144 billion over 10 years—highlight a clear bipartisan commitment to national security. With $29 billion earmarked for shipbuilding and $25 billion for the Golden Dome missile shield, defense contractors are primed for sustained demand.

**** shows a stark rise in U.S. military investment, driven by China's growing influence. This aligns with the Pentagon's FY2026 budget goal of $1 trillion, making defense stocks a hedge against geopolitical risks.

Key sectors to watch:
- Aerospace and defense giants: Lockheed Martin (LMT) and Raytheon Technologies (RTX) are positioned to benefit from allocations for nuclear modernization ($13B) and Pacific Theater readiness ($11B).
- Cybersecurity firms: Mandiant (MNDT) and CrowdStrike (CRWD) may see demand rise as the bill prioritizes cybersecurity under Title II's low-cost weapons and defense supply chain resilience provisions.

The bill's inclusion of $5 billion for border security and narcotics missions also boosts companies like Boeing (BA), which manufactures aircraft for Customs and Border Protection.

Risks to Consider

While the OBBBA offers long-term growth opportunities, inflation and fiscal sustainability pose headwinds. The bill's $3 trillion debt impact (including interest) raises concerns about federal funding stability. Defense stocks, however, are less exposed to this risk due to their status as a strategic priority.

Investors should also monitor geopolitical developments: a de-escalation in U.S.-China tensions could reduce urgency for defense spending, while further conflicts might accelerate it.

Investment Strategy

1. Prioritize defense contractors: Focus on firms with direct ties to funded programs, such as shipbuilding or missile defense.
2. Look for telecom plays with rural exposure: Telecom stocks tied to broadband deployment could outperform as connectivity becomes a bipartisan priority.
3. Avoid sectors facing cuts: Steer clear of companies reliant on SNAP, Medicaid, or housing programs targeted by the bill's rescissions.

The OBBBA's bipartisan support for infrastructure and defense signals a durable tailwind for these sectors. While fiscal risks loom, the bill's alignment with national security and connectivity goals positions defense and telecom as standout picks in 2025 and beyond.

Final Take: Investors should pair exposure to defense and telecom with caution around fiscal constraints. The political consensus around these sectors suggests resilience—even as broader gridlock persists.