By David Shepardson

WASHINGTON, (Reuters) – A $1.75 trillion Democratic spending plan could provide a huge boost for electric cars especially for Detroit’s Big Three carmakers as well as the U.S. Postal Service.

House plans to increase electric vehicle credits up to $12,500 per car, which includes $4,500 for vehicles made by unions and $500 for batteries manufactured in the United States. To be eligible for credit, vehicles must have been manufactured in the United States beginning in 2027.

The EV credit credits will cost $15.6 billion in 10 years. They would be disproportionately beneficial to Detroit’s Big Three automakers – General Motors (NYSE;), Ford Motors (NYSE.) and Chrysler-parent Stellantis NV – which assemble U.S.-made cars at union-representative plants.

While foreign automakers strongly support the United Auto Workers union’s decision to offer union-made cars a significant advantage, they have harshly criticised it.

Tesla (NASDAQ;) and most foreign automakers lack union representation for assembly workers in the United States. Additionally, many of them have opposed UAW efforts to organize U.S. plant.

Honda stated in a Friday letter that “this tax credit plan would place Americans working for three legacy companies against American workers from other automakers.”

U.S. taxpayers would receive $6 billion under the bill. Postal Service will purchase infrastructure and delivery vehicles that are electric. USPS said Friday it estimates under the bill “all delivery fleet acquisitions could feasibly be electric by 2028, and a corresponding 70% of our entire delivery fleet by” 2030.

USPS granted a 10-year contract in February to Oshkosh Defense (NYSE:) Defense. This subsidiary of Oshkosh is responsible for building a mixture of EV and internal combustion vehicles. It could have a value of $6 billion.

The EV proposal removes the phasing-out of tax credits once automakers have sold 200,000 electric cars. This would allow GM and Tesla to be eligible.

Jennifer Granholm, Energy Secretary to CNBC, defended Tesla’s exclusion from higher credit. She said: “We want that we do all that is possible to promote that business. Labor really focuses on raising the standard for every American.

The bill creates a new electric bicycle and three-wheeler vehicle tax credit. It also provides a 30% credit to commercial electric vehicles.

The bill would provide $3.5 billion in grants to domestic manufacturing convertors for green and electric vehicles, and $3 billion to expand a U.S. loan program for retooling existing plants that produce more efficient models. It also covers zero-emission airplanes, trains, boats, and Hyperloop technology.