US Chamber Transportation Head: Infrastructure Talks Must Result in Action
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With infrastructure policy negotiations between the White House and Capitol Hill expected to intensify over the coming weeks, the transportation community is sounding increasingly optimistic about the prospects of the sides reaching a legislative compromise before the end of the year.
President Joe Biden’s recent meetings with top transportation policymakers at the White House point to that possibility. Ed Mortimer, vice president of transportation infrastructure at the U.S. Chamber of Commerce, who just wrapped up the United for Infrastructure advocacy forum (May 10-14), told Transport Topics he is hopeful about policymakers’ ability to advance infrastructure initiatives.
These would ideally be in the form of a comprehensive infrastructure funding stimulus, as well as a five-year highway authorization update. Importantly, advancing two such proposals would benefit communities and the economy, the Chamber and myriad stakeholders representing nearly every aspect of the transportation community continue to say.
Mulero
“Our view has been very simple: Inaction is not an option. Compromise is going to have to be what it takes to get something done. And we’re encouraging Democrats and Republicans to continue these meetings. And, at some point though, we have to get from just talking to actually moving stuff,” Mortimer told us May 13. “We want to get a broad infrastructure stimulus bill, but we also need to get a five-year, surface transportation reauthorization: Two major goals that we have for the year. We’re hopeful that at least on the surface side, we’re going to start seeing bills out of the House and Senate committees.”
The funding conundrum surrounding both policy initiatives remains unresolved, and it would be up to congressional leaders to arrive at common-sense solutions.
“It’s a negotiation and I think everything is on the table,” Mortimer said, “even though some members laid red lines.”
CoC Letter to Commerce Secretary Raimondo by Transport Topics on Scribd
Biden’s $2.25 trillion infrastructure vision, called the American Jobs Plan, would aim to raise the corporate tax rate from 21% to 28%. The Chamber has taken issue with such a proposal: “We don’t believe that’s the way to pay for an infrastructure bill. We have put out a variety of funding and financing options that are user-based, that encourage private investment, and we believe that there are a lot of other ways to pay for an infrastructure bill; that everyone agrees the goal is for long-term economic growth.”
“But raising the tax rate is counterintuitive. … We continue to believe there are other options that the Congress should consider before looking at the corporate rate or any of the other business taxes. And we’re willing to work with Republicans and Democrats to flesh out those proposals and to hopefully help them guide a package together of a combination of a lot of ways to pay for an infrastructure bill.”
For emphasis, the Highway Trust Fund, a federal account used to assist states with surface transportation projects, is headed toward insolvency. Revenue from federal gas and diesel taxes is insufficient to meet the fund’s long-term obligations. Stakeholders have pressed members of Congress to raise fuel taxes.
Some support the adoption of a national vehicle miles traveled program that would charge motorists a fee for miles driven. Ultimately, Congress’ role in pursuing a big-ticket infrastructure package is likely to result in a dynamic legislative structure.
“There’s no, one easy solution,” Mortimer observed. “It’s going to be a variety of ways to pay for it.”
The Week Ahead (all times Eastern)
May 18, 3 p.m.: The Senate Tourism, Trade, and Export Promotion Subcommittee meets for a hearing titled, “Reviving International Travel and Tourism to Create and Restore Jobs.”
May 19, 10 a.m.: The House Ways and Means Committee meets for a hearing titled, “Leveraging the Tax Code for Infrastructure Investment.”
May 19, 10 a.m.: The Senate Environment and Public Works Committee meets for a hearing titled, “Examining Biodiversity Loss: Drivers, Impacts, and Potential Solutions.”
May 19, 10 a.m.: The Senate Transportation, Housing and Urban Development, and Related Agencies Appropriations Subcommittee meets for a hearing titled, “Rethinking Disaster Recovery and Resiliency, Part 2: Protecting Communities and Accelerating Assistance.”
Freight Corridor
The Motley Fool takes a look at which renewable energy stocks could stand to gain from Biden's infrastructure plan.
Legislative Docket
Davids
Under the Helping Communities Invest in Infrastructure Act, sponsored by Rep. Sharice Davids (D-Kan.), emphasis on localities would be enhanced to improve access to mobility options. Specifically, the legislation would increase outreach efforts to certain communities to provide greater information regarding funding options.
An information campaign would be dedicated to inform local officials of best practices for accessing such funding, and, rural projects would see an increase in funding opportunities via accessible loans.
“Infrastructure touches every aspect of our lives, and I’m working to ensure that communities in the Kansas City metro area are able to make the kinds of upgrades and repairs that will keep people safe and create good-paying jobs,” Davids said April 27.
Buzz
The full fiscal 2021 budget request will be unveiled at the end of the month.
Favorite Video
Seeing is believing.
Favorite Tweet
A new chapter in the mask mandate saga.
“Free at last,” says a maskless Mitch McConnell, as he exits the Senate for the week. pic.twitter.com/YfbWekZ9BW — Nicholas Fandos (@npfandos) May 13, 2021
The Last Word
Our top priority right now is getting the fuel to communities that need it.
Secretary Pete Buttigieg on May 12
We publish weekly when Congress is in session. E-mail emulero@ttnews.com with tips. Follow us @eugenemulero and @transporttopics.
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