Posts Tagged ‘infrastructure’

Trump Might Support 7-cent Gas Tax Hike

October 31, 2017

The Trump administration might seek an increase in the federal gasoline tax as a way of paying for a proposed $1 trillion infrastructure program.

That point was made by Trump’s economic adviser Gary Cohn during a private meeting with House lawmakers last week.

The proposed 7-cent increase would be used to fund public work projects, such as railways, roads, waterways and bridges.

Trump had said earlier this year during an interview with Bloomberg News that he was open to a gas tax increase. The last gasoline tax increase came in 1993.

Rep. Bill Shuster (R-Pennsylvania), the chairman of the House Transportation and Infrastructure Committee said there is little interest in a gas tax hike now, but that committee members might support one if the White House gets involved and supports the increase.

Although the Trump infrastructure plan has received widespread attention, the administration has yet to reveal any hard details about it.

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Some Doubt Private Investment Will Help Rails

October 7, 2017

Private sector investment in railroad projects is unlikely, a congressional committee was told this week.

The comments were made at hearing held by the U.S. House Transportation and Infrastructure subcommittee hearing on rail infrastructure on a proposed Trump administration infrastructure renewal plan.

The Trump plan would rely on private investment as well as public funding.

The witnesses at the hearing said that the federal and state governments can be expected to play a role in sustaining and expanding the nation’s rail network, but the private sector is unlikely to be much of a player when it comes to railroad investment.

“What you’re talking about clearly goes beyond what the private sector at this point is prepared to do,” said Ed Hamberger, president of the Association of American Railroads.

In particular, Hamberger referenced the capital needs of Amtrak. The carrier’s co-CEO, Charles “Wick” Moorman had told the committee that the critical, huge infrastructure projects that Amtrak faces will require federal investment.

Without that, Moorman said, the system runs out. “We can do a lot of work on state of good repair, we can improve the way we spend money, but it’s going to take a lot of federal investment,” he said.

“I think Mr. Moorman’s needs go far beyond what the private sector can do,” Hamberger said.

One news report said that Democrats on the subcommittee pushed for public funding of intrastructure projects while Republicans members remained silent about that.

Even President Trump has reportedly expressed doubt about the scope of the private sector’s role in infrastructure rebuilding.

Trump reported said during a closed meeting of the House Ways and Means Committee that public-private partnerships were not the solution for repairing the nation’s roads, bridges, and ports.

The Trump administration has been talking investing $200 billion in federal fund to leverage $800 billion of private investment. However, details about that plan have yet to be announced.

“I understand that the private sector has a role, the states have a role, but I think the federal government has to have a bigger role,” said U.S. Rep. Albio Sires, D-N.J. “Without the support of the federal government, I don’t think these projects can be done. Does anyone here believe that the private sector is the sole answer to this? If you do, please tell me, because I don’t believe this.”

Administration to Talk Infrastructure with DOTs

August 29, 2017

The Trump administration will meet this week with officials from state departments of transportation to discuss the administration’s ideas for infrastructure investment.

The invitation to participate said the event’s purpose “will be to underscore the need for a different approach, outline our draft guiding principles, and allow you all to brainstorm actions to help carry this conversation on the need for change and the opportunity to empower state and local leaders back to your states and communities.”

Attending the meeting will be Transportation Secretary Elaine Chao, Budget Director Mick Mulvaney and members of the President’s National Economic Council, and special assistant to the president for infrastructure D.J. Gribbin.

President Trump has proposed $200 billion of direct federal infrastructure spending over 10 years, with the goal of using it to leverage an additional $800 billion in state, local and private investment. However, the administration has yet to release a formal plan.

Infrastructure Council Terminated

August 21, 2017

The Trump Administration has dropped its plans to create an Advisory Council on Infrastructure.

The council was proposed to help provide guidance on spending for a multi-billion dollar program to improve roads, bridges and other public works.

Membership of the council would have included 15 members from real estate, finance, labor and other sectors.

Termination of the infrastructure council followed the disbanding of two other advisory groups to guide U.S. manufacturing and policies.

In the meantime, President Donald Trump has released a plan that is designed to alleviate the length of time it takes to get federal approval for projects. Trump issued an executive order that will:

  • Establish “one Federal decision” for major infrastructure projects to proceed.
  • Set a two-year goal for completing reviews.
  • Set up a “quarterly scorecard” to hold agencies accountable for delays.
  • Reduce duplicative requests for information and late-stage changes in the approval process.

Infrastructure Plan to be Released by Late May

May 19, 2017

Secretary of Transportation Elaine L. Chao told a Senate committee this week that the Trump administration’s U.S. infrastructure revitalization plan will be released before the end of May.

However, Chao said in her testimony to the Senate Environment and Public Works Committee that it will be fall before a more detailed plan is presented.  She said that will coincide with a congressional timetable.

“In the interim, obviously the president is very impatient, and he has asked that principles be released, so they should be coming out shortly,” Chao said.

She declined when pressed to provide any details other than to repeat earlier statement that the plan will be focused on using federal dollars to attract additional funding from state and local governments, and the private sector.

“The infrastructure proposal is being put together with a much greater view of principles,” Chao said. “Given the decentralized nature of our transportation infrastructure, there will be seeding of federal dollars that, hopefully, will leverage other monies from the private sector, state and local to $1 trillion.

“Federal funding often displaces state and local funds. We believe that the infrastructure needs are so great that all entities need to collaborate,” she said.

Some senators used the hearing to actively promote transportation projects in their states, ranging from transit capital funding to the Caltrain’s Peninsula Corridor Electrification Project to the need to rebuild Northeast Corridor infrastructure.

Some senators also expressed concern about the future of DOT TIGER and FASTLANE competitive grant programs.

Chao acknowledged that TIGER grants were popular with Congress. A Trump fiscal year 2018 budget blueprint has proposed ending TIGER funding, but Chao said it could re-emerge in a different form.

“The thought was that going forward there be a more holistic approach to infrastructure, and these TIGER grants would be recast some way in the future,” Chao said.