The six principles of Trump’s infrastructure plan

By |  February 12, 2018

The president officially unveiled his plan to rebuild U.S. infrastructure Feb. 12. Photo credit: Gage Skidmore via Foter.com / CC BY-SA

President Trump unveiled his legislative goals to rebuild the nation’s crumbling infrastructure. The six principles of the president’s plan include:

1. Committing $200 billion in federal funds to spur at least $1.5 trillion in infrastructure investments with partners at the state, local, tribal and private levels. According to the White House, the president’s plan will lead to at least $1.5 trillion in investments.

Trump proposes $200 billion in federal funds as a means to spur at least $1.5 trillion in new infrastructure investments.

Of the $200 billion, $100 billion will create an Incentives Program to spur additional dedicated funds from states, localities and the private sector. Applications for this program will be evaluated on objective criteria, with creating additional infrastructure investment being the largest factor. Additionally, the program will promote accountability, making federal funding conditional on projects meeting agreed-upon milestones.

Another $20 billion will be dedicated to the Transformative Projects Program. This program will provide federal aid for projects that have the potential to dramatically improve America’s infrastructure, the administration says. The program will focus on projects that could have a significant positive impact on states, cities and localities but may not attract private-sector investment because of the project’s unique characteristics.

Additionally, $20 billion will be allocated to expand infrastructure-financing programs. Of the $20 billion, $14 billion will go to expand a number of existing credit programs: TIFIA, WIFIA, RRIF and rural utility lending. Meanwhile, $6 billion will go toward expanding private activity bonds.

Ten billion dollars will go to a new Federal Capital Revolving Fund, which will be designed to reduce inefficient leasing of federal real property. A new fund will allow some incremental revenues from energy development on public lands to pay for the capital and maintenance needs of public lands infrastructure.

2. Making new investments in rural America. According to the White House, rural America’s infrastructure has been left behind for too long, and President Trump’s plan will make sure it is supported and modernized.

Accordingly, $50 billion of the $200 billion in direct federal funding will be devoted to a new Rural Infrastructure Program to rebuild and modernize infrastructure in rural America. The bulk of the dollars in the program will be allocated to governors, giving states the flexibility to prioritize their communities’ needs.

The remaining funds will be distributed through rural performance grants to encourage the best use of taxpayer dollars.

3. Returning decision-making authority to state and local governments. The administration argues that state and local authorities know the needs of their communities best.

Funds awarded to state and local authorities, such as through the Incentives Program and the Rural Infrastructure Program, will be allocated to infrastructure projects they prioritize. This empowers states and localities to make more infrastructure investment decisions and prioritize projects based on the needs of their communities, the administration says.

Additionally, the infrastructure plan will expand processes that allow environmental review and permitting decisions to be delegated to states. The plan will also allow federal agencies to divest assets that can be better managed by state or local governments or the private sector.

4. Removing regulatory barriers that needlessly get in the way of infrastructure projects.

According to the administration, the president’s plan will provide more flexibility to transportation projects that have minimal federal funding but are currently required to seek federal review and approval. The plan would also incentivize the efficient development and management of water infrastructure, in part, by providing more flexibility to the U.S. Army Corps of Engineers and its partners.

The infrastructure plan would give the Department of Veterans Affairs the flexibility to use its existing assets to acquire new facilities by allowing it to retain property sale proceeds and exchange existing facilities for construction of new facilities. And it would expand funding eligibility for land revitalization projects through the Superfund program and establish tools to help manage their legal and financial matters.

5. Streamlining and shortening permitting for infrastructure projects. Working with Congress, the administration plans to establish a “one agency, one decision” structure for environmental reviews and shorten the environmental review process to two years while still protecting the environment.

The president’s plan also proposes to eliminate certain redundant and inefficient provisions in environmental laws, as well as create two new pilot programs to test new ways to improve the environmental review process.

6. Supporting and strengthening America’s workforce. The plan proposes reforms so Americans can secure good-paying jobs and meet the needs of industries.

The infrastructure plan would reform federal education and workforce development programs to better prepare Americans to perform the in-demand jobs of today and the future, the White House says.

This includes making high-quality, short-term programs that provide students with a certification or credential in an in-demand field eligible for Pell Grants; reforming the Perkins Career and Technical Education Program to ensure more students have access to high-quality technical education to develop the skills required in today’s economy; and better targeting federal work-study funds to help more students obtain important workplace experience, including through apprenticeships.

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Kevin Yanik

About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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