Capitol Agenda for the Week of Jan. 24: A Toll Bridge Too Far?
The week ahead for trucking on Capitol Hill
When President Trump, his new team at the Department of Transportation, and Republican leaders say they would like to partner with investors to finance infrastructure projects, tolling enters the picture. Wall Street bankers and investors from other financial centers who are eagerly looking to inject money into infrastructure projects intend to see a return on their investments. A no-brainer approach to extracting money from people using a new roadway or a bridge backed by private capital is to charge them via tolls.
Transportation agencies teaming up with the private sector to build a project is called a public-private partnership. While the concept has been around, it has gained popularity in recent years. States are starting to rely on P3s and tolls to advance big-scale projects because public funds are not enough. For example, Rhode Island Gov. Gina Raimondo (D) is proceeding with a plan to toll trucks as a way to fix the state’s deficient bridges. Critics argue private partnerships fall short of modernizing Eisenhower-era pipelines, airports, and freight corridors, especially in rural America. Additionally, the trucking industry and vast swaths of motorists are not fans of adding tolling facilities. A Washington Post/ABC News poll found 66% of people expressed opposition to an infrastructure plan anchored on providing $140 billion in tax credits to investors who likely would add tolls.
To be sure, revenue from tolls helps key freight corridors, such as the New Jersey Turnpike, to continue to serve a purpose. Tolls actually are beneficial, Patrick Jones, executive director of the tolling advocacy group International Bridge, Tunnel and Turnpike Association, tells stakeholders and drivers. “There’s no doubt that Washington plays a critical role in funding surface transportation and keeping America moving forward,” Jones said Jan. 19. “And there’s no doubt that private funding has an essential role to play.” If Trump makes good on his campaign promise, Congress should expect the White House to propose a $1 trillion investment in infrastructure over a decade through tax credits for private investors. But as to where that funding will come from, we’ll cross that toll bridge when we come to it.
THE WEEK AHEAD (all times ET):
Jan. 24, 7:45 a.m.: The Ripon Society holds a talk on "how Republicans will build on their success in the year ahead" with Republican Reps. David Young, Will Hurd and Bruce Poliquin.
Chao by Pete Marovich/Bloomberg News Jan. 24, 10 a.m.: The Senate Commerce Committee meets for a hearing to consider the nominations of Elaine Chao to oversee the Department of Transportation and Wilbur Ross to oversee the Department of Commerce.
Jan. 24, 11 a.m.: The Congressional Budget Office hosts a briefing on the annual budget and economic outlook report.
Jan. 24-25: The Washington Area New Automobile Dealers Association hosts a MobilityTalks international forum, featuring Sen. Gary Peters (D-Mich.) and Rep. Debbie Dingell (D-Mich.).
Jan. 25: The National Governors Association hosts its State of the States Address with Virginia Gov. Terry McAuliffe (D) and Nevada Gov. Brian Sandoval (R).
Jan. 26, 9 a.m.: The Eno Center for Transportation hosts its Capital Convergence 2017.
Jan. 26-27: House and Senate Republicans hold their joint issues retreat in Philadelphia.
Jan. 26, 12 p.m.: The Urban Institute hosts a panel on "State of the States: Budgeting in the Trump Era."
Jan. 27, 12 p.m.: The Heritage Foundation hosts a panel on "Bridges or Boondoggles? An Infrastructure Agenda for the Trump Administration" featuring Chris Edwards, director of tax policy studies at the Cato Institute; Robert Puentes, president and CEO of the Eno Center for Transportation; Marc Scribner, fellow at the Competitive Enterprise Institute; and Michael Sargent, research associate at Heritage.
IN CASE YOU MISSED IT:
Jefferson by T.J. Kirkpatrick/Bloomberg News NEW SHERIFF: The Federal Motor Carrier Safety Administration is being led by Deputy Administrator Daphne Jefferson. After Scott Darling stepped down last week from his leadership role, Jefferson will run the agency until an acting administrator or a Senate-confirmed appointee arrives.
CSA: Before exiting stage left, Darling told reporters Jan. 19 he looks forward to the implementation of the Compliance, Safety, Accountability program after a National Academy of Sciences study is completed this year.
FASTLANE: The Build America Bureau has received 195 applications requesting more than $7 billion in FASTLANE freight infrastructure grants, then-Transportation Secretary Anthony Foxx announced Jan. 19.
WHAT WE’RE READING:
Writing for The Hill, Melanie Zanona sets up the argument that Elaine Chao, President Trump’s nominee to lead the Department of Transportation, will be a strong asset for the White House and Congress in realizing a massive infrastructure plan over the next two years.
FAVORITE QUOTE:
“President Trump is in apparent breach of the lease with the federal government for his hotel in Washington, D.C.”
— Reps. Elijah E. Cummings (D-Md.) and Peter DeFazio (D-Ore.), ranking members of the House Committee on Oversight and Government Reform, and Transportation and Infrastructure, respectively; and Reps. Gerry Connolly (D-Va.) and André Carson (D-Ind.), in a letter dated Jan. 23 to Timothy Horne, acting administrator of the General Services Administration.
FAVORITE VIDEO:
Robert Reich, labor secretary for President Clinton, takes to the whiteboard to slam Trump’s $1 trillion infrastructure proposal.
FAVORITE TWEET:
Senate trucking subcommittee Chairwoman Deb Fischer (R-Neb.) pops an important announcement about that thing we all love.
Happy National Popcorn Day! Fun Fact: Nebraska is the largest producer of popcorn in the U.S. #ProudNebraskan pic.twitter.com/5vQjgu5enU — Senator Deb Fischer (@SenatorFischer) January 19, 2017
Thanks for reading Capitol Agenda! We publish Tuesdays when Congress is in session. E-mail emulero@ttnews.com with tips. Follow us @eugenemulero and @transporttopics
