Moments after President Donald Trump was sworn into office, he reiterated in his Inaugural address the promise that “[w]e will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation.” This follows comments by Vice President Michael Pence to mayors that the Trump administration will follow through on the promise to launch a “big” infrastructure investment program.
There remains much speculation around how such a “big” infrastructure plan will be implemented and, more importantly, paid for. However, comments from Secretary Elaine Chao (former secretary of labor under President George W. Bush) during her confirmation hearing to become the next Secretary of Transportation offer insights from the person who should play a leading role in implementing a Trump infrastructure plan.
A summary of comments from Chao’s confirmation hearing address some of the questions swirling around the promised infrastructure plan:
Public or Private Funding?
While there has been significant discussion around an infrastructure plan focusing on private investment, Chao stated she supports making use of both private financing and direct federal spending. Specifically, Chao states “[w]e look forward to working with you to explore all the options, and to create a mix of practical solutions — both public and private — that provide the greatest cost-benefit to the public.” Chao’s statements signal continued use of existing competitive federal grant programs under the FAST Act, while also stimulating private investment in public projects through support for incentivizing the use of public-private partnerships. (Note: Chao’s hearing was before the White House webpage was updated with a statement that revenues from domestic energy production will be used to build public infrastructure.)
Buy America?
Chao committed to fulfill Trump’s promise to buy and hire American, a priority that was again confirmed in the president’s inaugural speech. Accordingly, we can likely expect Buy America to be a part of any draft plan; however, it will be closely watched as to whether such a provision survives as any infrastructure plan makes its way through Congress.
Timing?
When pressed for a timeframe on when an infrastructure plan can be expected, Chao could only say she will try to report back within 30 days, but could not promise a firm date for release of the plan. She did assure the Committee there would be continual and constant dialogue. With the many significant priorities being focused on by the new president, how long lawmakers wait before putting forward their own plan may be something to watch, as this is an issue voters are very interested in. In fact, the Democrats released their own $1 trillion infrastructure plan as this post was being finalized. Be on the lookout for a summary of the proposed blueprint to “Rebuild America’s Infrastructure” shortly.
Chao is expected to be confirmed by the Senate very shortly. More information on Chao can be found in her nomination questionnaire, where she notes her transportation priorities as:
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safety and consideration of new transportation technologies,
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expediting projects with a focus on addressing bottlenecks in planning and permitting and
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addressing equity between urban and rural areas.
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