Trump Touts Infrastructure
This story appears in the Nov. 14 print edition of Transport Topics.
In the aftermath of Donald Trump’s win, trucking and transportation industry executives saw the president-elect’s bullish interest in modernizing the country’s infrastructure as a glass-half-full.
Even as they acknowledge that drastic boosts to infrastructure projects will not occur overnight or during the Trump administration’s first 100 days, the groups said they do expect a GOP-led Congress to act on highway funding within the next two years.
Specifically, the groups told Transport Topics last week, they would like to see lawmakers advance, and Trump sign, a long-term plan that would address the federal Highway Trust Fund’s sustainability.
“As you look at what he has said to this point where a lot of the attention seems to be on financing mechanisms, which is to say [public- private partnerships] or other revenue- generating type projects, those would tend to focus on freight movements and high-volume facilities,” Bud Wright, executive director of the American Association of State Highway and Transportation Officials, told TT a day after the elections.
“I can certainly see there being some positive things to look forward to, but again, we don’t know those details at this point, and he certainly hasn’t laid them out to any degree that we’re aware of,” Wright added.
The optimism on long-term highway funding stems primarily from Trump’s remarks during his acceptance speech in New York City, the groups said. In the run up to Election Day, Trump claimed he would upgrade old highways along freight corridors and modernize infrastructure landmarks, such as New York’s LaGuardia Airport, through a 10-year, $1 trillion plan.
“We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools,” Trump said Nov. 9. “We will rebuild our infrastructure. It will become second to none, and we will put millions of our people to work as we rebuild it.”
American Trucking Associations President Chris Spear welcomed the chance to address trucking’s concerns.
“As the industry that moves nearly 70% of our nation’s freight and is a key economic driver, we look forward to working with President-elect Trump,” Spear said.
However, congressional timelines might bog down a Trump highway agenda, AASHTO’s Wright and other groups’ leaders said. Also, debate on highway projects could sit on the sidelines during the new administration’s first 100 days if Congress debates health care, Supreme Court nominees and defense spending in the spring. After tackling those issues on the floors of the House and Senate, Wright said he could see Congress returning its focus on rebuilding bridges and tunnels.
Bill Sullivan, head of advocacy for ATA, stressed that the trucking federation has held meetings with Trump’s transition team to outline reforms for trucking regulations.
“They have been very open to a discussion on why do you have concerns about this,” Sullivan said. “I’m under no illusion that that means they’re going to serve up exactly what we have, but the fact that they’re asking [ATA] is important.”
Trump’s infrastructure and regulatory plans will need backing from AASHTO, ATA, and the American Road and Transportation Builders Association (ARTBA), among others, as well as lawmakers who have balked at big federal spending. That includes primarily the tea party caucus in the House.
“President-elect Trump will have a ‘can-do’ industry as his partner in rebuilding and expanding the nation’s transportation infrastructure to make it again second to none. Give us the proper resources, and the new jobs and innovative solutions will take off,” said Pete Ruane, ARTBA’s president and CEO.
Highway construction is costly, and Congress has disagreed for nearly 25 years on an approach to fund the transportation network. Trucking and much of the transportation industry backs an increase in the federal tax on fuel — 24.4 cents a gallon for diesel and 18.4 cents for gasoline. But the leaders of the House and Senate, and many Republicans, oppose raising taxes.
In the meantime, the groups wait to see details of Trump’s $1 trillion plan as well as congressional leaders’ vision for a long-term infrastructure funding plan for the next two years.
Edward Hamberger, CEO of the Association of American Railroads, said he hopes Trump’s business acumen will triumph in resolving the funding problem.
“As a business leader, Mr. Trump understands many of the economic challenges facing this country. As such, we hope he will move quickly on issues such as comprehensive tax reform that reduces the corporate rate, a review and reform of the broken regulatory system and an embracement of fair and open trade,” Hamberger said.
Jay Timmons, CEO of the National Manufacturers Association, added that Trump offers a business, and market-driven modus operandi for governing.
“Manufacturers expect our newly elected leaders to worry less about the powerful political extremes and concern themselves solely with solutions that will lift all Americans up and leave no one behind,” Timmons said.
