Infrastructure Funding Talks Expected to Gain Momentum After Tax Reform Concludes
Passage of a Republican-led tax reform bill will kick off negotiations on an infrastructure funding measure that transportation leaders and President Donald Trump argue is badly needed for improving connectivity across freight corridors.
On Capitol Hill, policymakers on the transportation panels are meeting informally with their Republican leaders and White House officials. The gatherings are meant to share their infrastructure priorities and ideas for funding large-scale projects, aides with insight into the discussions told Transport Topics on Nov. 20.
The Republican transportation policymakers also would signal a strong interest in advancing an infrastructure bill through a House committee and onto the chamber’s floor for a public debate if a concrete plan out of the White House is delayed early next year. Initially, Trump had declared his $1 trillion, 10-year infrastructure proposal would be unveiled within his first 100 days in office.
Before a meeting with his Cabinet at the White House on Nov. 20, Trump said he would turn his attention to negotiating an infrastructure package when a tax overhaul is accomplished.
“We’ll be working on health care, infrastructure and welfare reform. We’re looking very strongly at welfare reform, and that will all take place right after taxes, very soon, very shortly after taxes,” Trump said. “So we’ll be submitting plans on health care, plans on infrastructure, and plans on welfare reform, which is desperately needed in our country, soon after taxes.”
To get ready for an infrastructure debate with members of Congress, the White House drafted a 70-page “infrastructure principles” document, said Reed Cordish, assistant to the president for intragovernmental and technology initiatives. The document was the result of meetings with mayors, governors, federal lawmakers and stakeholders, and it would be used as a guide for crafting bipartisan legislation that would facilitate the way states and cities finance big-ticket projects.
“What we’re going to do is create the long-term fixes,” Cordish said Nov. 13 at Internet Association’s 2017 Virtuous Circle Summit.
Good to hear WH tech advisor Reed Cordish being bullish on tax reform and infrastructure at #VC2017 @InternetAssn pic.twitter.com/sqOe6AA76i — Patrick Lyden (@P_Lyden) November 13, 2017
Earlier this year, an outline the White House published proposed relying on $200 billion in federal funds to incentivize $800 billion from private firms seeking to invest in infrastructure projects. That outline also proposed reducing restrictions on tolling to allow states to decide if tolling would suit their needs.
American Trucking Associations endorses increasing and indexing federal fuel taxes to ensure long-term funding for infrastructure projects. The group is against tolling along existing interstates.
“Due to the lack of funding from traditional sources, state and local governments increasingly rely on alternative revenue streams, such as tolls. While ATA does not oppose toll financing for new capacity, we oppose tolls on existing interstate lanes,” the group said in a fact sheet.
Marcia Hale, president of infrastructure funding advocacy group Building America’s Future, stressed an infrastructure bill would help reduce congestion along passenger and freight corridors.
“It is imperative that Congress and the administration hear our voices and work together to produce a long-term and well-funded plan to revitalize current infrastructure and meet the demands of current and future generations,” Hale said. “Our leaders must offer direct, federal dollars to address our aging roads, rails, runways and bridges. Our collapsing infrastructure must be a priority, or we will continue to fall behind as a nation.”
The federal tax on diesel has been 24.4 cents per gallon, while the tax on gas has stayed at 18.4 cents per gallon since 1993. More than two dozen states have raised fuel taxes in recent years to help finance road maintenance projects. This year, the American Society of Civil Engineers gave the country’s infrastructure a D+ grade.
