Road Plan Expected in May
This story appears in the April 10 print edition of Transport Topics.
WASHINGTON — A $1 trillion infrastructure funding plan President Donald Trump intends to unveil would seek to connect private investors with officials who manage big-ticket projects, the country’s top transportation officer told port executives April 5.
“In addition to traditional mechanisms, the president’s plan hopes to unleash the potential for private investment in infrastructure by incentivizing public-private partnerships,” Secretary of Transportation Elaine Chao said at the American Association of Port Authorities annual conference.
“This is one additional way to address the resource needs of transportation systems. Investors say there is ample capital available, waiting to invest in infrastructure projects,” Chao added.
The secretary emphasized the proposal would incorporate funding for ports and energy projects as well as broadband and Veterans Affairs hospitals. Reducing the permitting process for construction projects such as roadways, ports and bridges also would be a part of the Trump administration’s plan, which the secretary had said could be unveiled next month. Chao downplayed the public funding component the proposal is expected to have.
“Economists say cutting the time to make decisions on roads, bridges and ports from 10 years to two could reduce costs by as much as $427 billion over six years. So we need to identify the obstacles standing in the way of timelier project delivery,” she told the group.
Before her address, Chao briefed about 45 lawmakers on Capitol Hill about the administration’s infrastructure proposal, said House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.). The chairman had indicated consideration of an infrastructure plan would occur in the fall.
“There’s a federal component to it, obviously, and we gotta figure out the revenues — how we get more revenues. Public-private partnerships are a tool in the toolbox, but it’s not the toolbox. It’s a good tool. We need to make it better,” Shuster said during a subcommittee hearing.
Republicans in control of Congress have yet to announce their plan to ensure long-term funding for infrastructure projects.
On April 4, Trump told about 50 business leaders at the White House that his infrastructure plan would aim to cut review times for construction projects, and he would oppose funding projects that cannot be started within 90 days. This type of shovel- ready approach toward infrastructure was a hallmark of the Obama administration as well.
“We’re talking about a very major infrastructure bill of a trillion dollars, perhaps even more,” Trump said, according to a transcript the White House provided. “If we say we’re giving to New York City hundreds of millions of dollars to build a road someplace, it doesn’t help if they can’t start because it’s going to take 7½ years to get the permits. Even to redo a road takes years to get the permits. You know you have a road that’s there and you want to redo it, and you have to get new permits for the kind of asphalt you’re using, the kind of concrete you may want to use.”
Chao, who participated in the event with the CEOs, acknowledged details of the infrastructure proposal have yet to be finalized. During the election campaign, Trump pledged to provide Congress legislation during his first 100 days in office that would invest $1 trillion in infrastructure over 10 years. April 30 would mark the administration’s 100th day.
