Reaction Roundup: President Trump’s Infrastructure Plan

Since last week’s release of details of President Trump’s long-awaited infrastructure plan and his proposed FY 2019 budget, reaction has been rolling in. Here’s a primer on where to read more about the President’s overall approach to infrastructure and various aspects of the plan getting attention, as well as what various stakeholder groups and analysts are saying.

What’s in the Infrastructure Plan

The Trump plan looks to find $200 billion to attract additional funds from states, localities and private investors and generate a total of $1.5 trillion to upgrade the nation’s infrastructure. The White House is proposing to spend that $200 billion thusly:

• $100 billion on competitive grants for state and local governments;
• $50 billion in block grants to states for rural infrastructure;
• $20 billion to expand low-cost federal loans and other borrowing;
• $20 billion for transformative projects; and
• $10 billion to improve federally owned infrastructure.

The plan seeks to eliminate regulatory barriers and speed up the permitting process to deliver projects in shorter timeframes by streamlining the federal role, delegating to states and piloting new approaches.

A number of other priorities detailed in the plan have also received attention. Among them:

• Selling off national airports and other federal infrastructure assets;
• Lifting the ban on interstate tolling; and
• Requiring that new transit projects require some form of value capture.

Read the Plan

• “Legislative Outline for Rebuilding Infrastructure in America,” The White House, February 12, 2018.

• “Building a Stronger America: President Donald J. Trump’s American Infrastructure Initiative,” The White House (fact sheet), February 12, 2018.
• “President Trump’s Legislative Initiative to Rebuild Infrastructure in America,” U.S. Department of Transportation (highlights), February 12, 2018.

Further Reading on the Plan

• “What the Trump Infrastructure Plan Gets Right,” Governing, February 20, 2018.
• “Five things you may have missed in Trump’s infrastructure plan,” The Hill, February 14, 2018.
• “Trump administration wants to sell National and Dulles airports, other assets across U.S.,” The Washington Post, February 13, 2018.
• “The Trump Infrastructure Plan Just Might Have One Good Idea for Cities,” Slate, February 13, 2018.
• “D.C. airports sold to the highest bidder? Not so fast…” USA Today, February 13, 2018.
• “White House releases 55-page, $1.5 trillion infrastructure plan,” The Hill, February 12, 2018.
• “Trump’s Infrastructure Plan Puts Burden on State and Private Money,” The New York Times, February 12, 2018.
• “Trump infrastructure plan could sell off Reagan, Dulles airports,” Politico, February 12, 2018.
• “Trump Infrastructure Plan Wants to Stop ‘Overreliance’ on Federal Money,” Governing, February 11, 2018.
• “Trump proposes $200B for infrastructure to be cut from other federal programs to pave way for $1.5T in projects,” USA Today, February 11, 2018.

What’s Not in the Plan

In short, how to fund the plan, as many pointed out…

• “America’s 3 infrastructure problems,” Vox, February 22, 2018.
• “What It Would Actually Take to Fund Infrastructure,” City Lab, February 21, 2018.
• “Trump’s Infrastructure Plan Threatens to Leave Little Cities Behind,” Wired, February 14, 2018.
• “Let’s Stop Calling It a $1.5 Trillion Infrastructure Plan,” City Lab, February 13, 2018.
• “U.S. transportation chief: Weighing all options to fund infrastructure,” Reuters, February 13, 2018.
• “Trump’s Infrastructure Plan Is to Spend Less on Infrastructure: The administration’s plan is to spend money with one hand, and take it away with the other,” The Nation, February 13, 2018.
• “How Trump Plans to Turn $200 Billion Into $1.5 Trillion in Infrastructure Spending,” The New York Times, February 12, 2018.
• “Trump’s Infrastructure Con: America needs a big, bold infrastructure plan. Trump’s proposal is not one,” Associated Press, February 12, 2018.
• “Trump’s infrastructure proposal, explained: Stingier grants and no actual source of new money,” Vox, February 12, 2018.
• “Trump’s long-awaited infrastructure plan is a fraud,” ThinkProgress, February 12, 2018.
• “Don’t dismiss infrastructure proposal,” USA Today, February 12, 2018.
• “Trump’s infrastructure plan: Small federal investment, more state and local control,” Curbed, February 12, 2018.
• “What the ‘$1.5 Trillion Infrastructure Plan’ Really Pays For,” City Lab, February 12, 2018.
• “Trump Infrastructure Plan Would Pay For a Fraction of Investment,” National Public Radio, February 12, 2018.
• “Trump’s big infrastructure plan has a lot of detail on everything but how to pay for it,” The Washington Post, February 11, 2018.
• “Trump launches $1.5 trillion sales pitch: His infrastructure plan is light on federal dollars and heavy on incentives for state and local spending,” Politico, February 12, 2018.
• “Trump remains doubtful about a key part of his own infrastructure plan: NBC News,” CNBC, February 9, 2018.

Also, provisions to address climate change…

• “Trump’s Infrastructure Plan May Ignore Climate Change. It Could Be Costly,” The New York Times, February 10, 2018.

Tolling & Public-Private Partnerships

The Trump infrastructure plan seeks to use federal dollars to leverage a mix of private and public funding sources. The plan also puts an emphasis on expanded tolling both to generate revenue and to alleviate congestion. As noted above, The White House wants to give states the flexibility to toll interstate highways if they so choose. The administration believes Florida’s I-4 Ultimate Project could be a model for the country when it comes to tolling and public-private partnerships.

Further Reading

• “Why the Trump Administration Is Relying on Public-Private Partnerships to Fund Infrastructure,” Reason Foundation, February 22, 2018.
• “With Gas Tax Hike On the Table, Support for Tolling Grows,” International Bridge, Tunnel & Turnpike Association, February 20, 2018.
• “Federal infrastructure plan shines a bright, new light on toll revenue,” The Hill, February 16, 2018.
• “Want to rebuild highways and reduce congestion? Pay the toll,” The Hill, February 16, 2018.
• “To pay for highways, expanded tolls are better than higher gas tax,” Washington Examiner, February 14, 2018.
• “President Trump’s Infrastructure Plan: A Substantive Shift to Private-Sector Funding,” S&P Global Market Intelligence, February 14, 2018.
• “White House Infrastructure Plan Shows That Tolling’s Time Has Come,” International Bridge, Tunnel & Turnpike Association, February 13, 2018.
• “Trump infrastructure proposal would allow tolls along interstates,” USA Today, February 12, 2018.

Impacts to Transit & Amtrak

The President’s proposed budget would phase out the Federal Transit Administration’s Capital Improvement Grants program over a decade and eliminate funding for projects competing for grants under the FTA’s New Starts program. The Transportation Investment Generating Economic Recovery, or TIGER, program, which has funded numerous transit-related projects, would get the axe. The Passenger Rail Investment and Improvement Act could also see cuts. The President has proposed just $738 million to fund Amtrak for FY 2019. Amtrak’s budget request is for $11 billion. Transit advocates suggested the administration is trying to get to the magical $200 billion number for the federal contribution to the President’s infrastructure plan by cutting funding for these public transportation programs in the budget.

Further Reading  

• “Amtrak Submits Ambitious $11 Billion Budget Request,” Eno Center for Transportation, February 19, 2018.
• “What Trump’s Infrastructure Proposal Could Mean for Public Transportation,” Mass Transit, February 21, 2018.
• “Trump plan is bad for transit infrastructure,” Newsday, February 16, 2018.
• “APTA: Trump Would Cut Public Transportation Programs to Pay for Infrastructure Plan,” AASHTO Journal, February 16, 2018.
• “Trump budget threatens local transit projects,” The Hill, February 14, 2018.
• “Trump administration budget trims Metro subsidy instead of killing it, as feared,” The Washington Post, February 12, 2018.
• “Trump takes aim at blue stats in infrastructure plan: Some major transit projects are left fighting for scraps,” Politico, February 12, 2018.

Potential Impact on Individual States

There has also been a great deal of analysis over the last couple of weeks about how the President’s plans could impact individual states. Among them:

• California: See here
• Connecticut: See here, here, here and here.
• Florida: See here and here
• Georgia: See here
• Kentucky: See here
• Mississippi: See here
• Missouri: See here
• New Jersey: See here
• New York: See here.
• South Carolina: See here and here
• Tennessee: See here
• Texas: See here and here
• Washington: See here and here.
• West Virginia: See here

Stakeholder Reaction & Analysis

A variety of transportation and infrastructure stakeholder organizations weighed in with their thoughts and analysis on the President’s infrastructure plan and budget following their release. Among them:

• Alliance for Toll-Free Interstates (ATFI)
• American Association of Port Authorities (AAPA)
• American Association of State Highway & Transportation Officials (AASHTO)
• American Planning Association (APA)
• American Public Transportation Association (APTA)
• American Society of Civil Engineers (ASCE)
• American Trucking Associations (ATA)
• Association of American Railroads (AAR)
• Brookings
• Coalition for America’s Gateways and Trade Corridors (CAGTC)
• Intelligent Transportation Society of America (ITS America)
• International Bridge, Tunnel & Turnpike Association (IBTTA)

• See also here.

• National Association of City Transportation Officials (NACTO)
• National Retail Federation (NRF)
• NATSO (formerly the National Association of Truck Stop Operators)

• See also here.

• Reason Foundation
• Smart Growth America
• Streetsblog USA

• See also here.

• Supply chain industry
• Transportation Construction Coalition (TCC)
• Transportation for America (T4America)

• See also here and here.

Further Reading

• “Stakeholders Pivot to Trust Fund Issue, Look Toward Shaping Legislation,” AASHTO Journal, February 16, 2018.

So, what are the chances for the infrastructure plan and where do things go from here?

There has been no shortage of opinions on those questions either…

• “State DOTs Urge Congress to Move Project Funding Via Highway, Transit Formulas,” AASHTO Journal, February 23, 2018.
• “Infrastructure Funding Hearing Planned for March 7,” Bloomberg Government, February 20, 2018.
• “Trump’s infrastructure push, a marquee campaign promise, is overshadowed by controversy and tragedy,” The Washington Post, February 17, 2018.
• “Confluence of crises crashes Trump’s ‘Infrastructure Week,’” Reuters, February 16, 2018.
• “Congress Treats Trump Investment Plan as Conversation Starter,” AASHTO Journal, February 16, 2018.
• “Trump Offers Complex Mix of Spending, Cuts in Investment Plan, Budget,” AASHTO Journal, February 16, 2018.
• “GOP chairman: Trump infrastructure bill could be ready ‘closer to summer,’” The Hill, February 15, 2018.
• “Trump’s ‘Infrastructure Week’ Crumbles Again,” HuffPost, February 15, 2018.
• “For Local Governments, Trump’s Infrastructure Plan Is a First Step,” Route Fifty, February 15, 2018.
• “Trump to Congress: ‘Come back with a counter-proposal’ on infrastructure,” USA Today, February 13, 2018.
• “Now comes the hard work on infrastructure,” Politico Morning Transportation, February 13, 2018.
• “Trump’s Hardest Construction Job,” Bloomberg View, February 13, 2018.
• “The Potholes Ahead for Trump’s Roads-and-Bridges Push: Quick Take,” Bloomberg Politics, February 12, 2018.
• “Trump infrastructure plan gets cold reception,” The Hill, February 12, 2018.
• “Trump’s Infrastructure Plan: Modest Federal Incentives, Facing Long Odds,” The New York Times, February 11, 2018.

Gas Tax

Just two days after the release of his infrastructure plan, President Trump seemed to contradict the stance of his administration when he reportedly told a group of lawmakers that he wants to raise the gasoline tax by 25 cents a gallon to pay for the plan (although some Senators who were in the meeting later called that “wishful thinking”). That idea produced a variety of opinions as well.

• “Commerce Secretary Wilbur Ross, who called raising gas taxes a ‘horrible idea,’ says Trump is considering a hike,” CNBC, February 22, 2018.
• “Ex-Obama Transportation secretary: ‘I’m for Trump’ on raising the gas tax to pay for infrastructure,” CNBC, February 21, 2018.
• “Gas Tax Increase Would Hit Trump States Hardest, Koch Groups Say,” Bloomberg Politics, February 20, 2018.
• “Poll: Voters are split on raising the gas tax,” The Hill, February 20, 2018.
• “Raising the gas tax hits another roadblock in Washington,” CNBC, February 20, 2018.
• “Trump talk riles advocates on both sides of gas tax,” The Hill, February 18, 2018.
• “Trump’s 25-Cent Infrastructure Tax?” Planetizen, February 18, 2018.
• “Trump gas tax support excites, distresses,” Politico Morning Transportation, February 15, 2018.
• “Trump’s Gas-Tax Hike Goes Nowhere in Congress,” Bloomberg, February 15, 2018.
• “Why Gas Taxes Aren’t Paying the Bills Anymore,” Bloomberg View, February 15, 2018.
• “Trump Surprises Lawmakers With Support for Gasoline Tax Hike,” Bloomberg Politics, February 14, 2018.
• “To pay for highways, expanded tolls are better than higher gas tax,” Washington Examiner, February 14, 2018.
• “Gas Tax Hike Could Have Serious Consequences for Oil Markets,” OilPrice.com. February 14, 2018.
• “Trump urges GOP to consider a 25-cent hike in the gas tax,” The Washington Post, February 14, 2018.
• “Trump backs 25-cent-a-gallon gasoline tax hike: senator,” Reuters, February 14, 2018.
• “The One Thing Infrastructure Experts Feel the Federal Budget Needs Desperately,” Route Fifty, February 12, 2018.

Mileage Tax

The release of a White House Council of Economic Advisers outlook report this week that highlighted Oregon’s mileage-based road usage charge program, OReGO, prompted speculation that the administration might be willing to support mileage fees to fund infrastructure investment. Read more here, here and here.