Infrastructure Plan Watch: A Democratic Proposal and a Hearing on the Hill

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The House Transportation and Infrastructure Committee held a hearing this week to discuss “Building a 21st Century Infrastructure for America.” This follows the release last month of the $1 trillion Democratic blueprint to “Rebuild America’s Infrastructure.” However, all eyes remain on President Donald Trump to construct and release his plan to “build new roads, and highways, and bridges, and tunnels, and railways…” as promised in his Inaugural address and on the campaign trail.

Infrastructure, User Fees and Innovation

During the House hearing, Chairman Bill Shuster (R-PA) confirmed the sentiment that infrastructure is the backbone of America, and noted the demands being placed on our infrastructure system due to increased passenger and freight movement. With testimony from Fortune 500 company leaders, including FedEx, Cargill and BMW North America, the critical role that a modern and well-maintained infrastructure system plays in these companies’ success was a major hearing emphasis.

Another important issue discussed at length was how to pay for needed infrastructure improvements. Ranking Member Peter DeFazio (D-OR) highlighted the unwillingness of Congress to raise the gasoline tax. There was also discussion around “user fees” to address the looming insolvency of the Highway Trust Fund. All witnesses agreed that a solution was needed, and that private-public partnerships cannot be relied upon alone as a funding solution.

Further, there was discussion regarding driverless vehicles and commercial drones, and making sure that any infrastructure plan encourages innovation and focuses on resiliency.

$1 Trillion Democratic Proposal

Confirming that modernizing our nation’s infrastructure is an issue with significant bi-partisan interest, Democrats released a blueprint that would invest $1 trillion to “Rebuild America’s Infrastructure.” Some major items from the Democratic plan focus on:

  • Transportation network improvements ($390 billion)
  • Rebuilding water and sewer systems ($110 billion) and schools ($75 billion)
  • Making our electrical grid stronger and more resilient ($100 billion)
  • Modernizing ports, airports and waterways ($65 billion)
  • Expanding broadband access ($20 billion)

While just a blueprint at this point, the proposal resembles an infrastructure plan previously proposed by Sen. Bernie Sanders (I-VT), as reported in Eno Transportation Weekly.

Prioritize Projects and Influence Shaping of Plan

Recent reports indicate that a Trump infrastructure plan is expected to be released in late spring or early summer. Paying for any plan remains one of the obvious and biggest challenges. As noted in the Democratic proposal and comments by Republican leadership,  a portion of funding for a trillion dollar plan is expected to come from ongoing efforts concerning corporate tax reform.

Another significant and complicated challenge will be balancing  Buy America requirements and federal labor requirements under Davis-Bacon with the goals of keeping project costs down and reaching a broad spectrum of infrastructure needs.

Now that Transportation Secretary Elaine Chao is confirmed, there is an administration spokesperson in place for the highly anticipated Trump infrastructure plan. As infrastructure proposals continue to be discussed, local governments should identify and share priority projects with elected representatives to ensure a voice in the shaping of a national infrastructure plan.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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