Trump infrastructure plan relies on state, local funding

By JONATHAN LEMIRE and MARTIN CRUTSINGER
Associated Press

WASHINGTON (AP) — President Donald Trump on Monday announced a “big week” for his long-awaited infrastructure plan, which envisions spurring $1.5 trillion in spending over a decade to rebuild roads and highways. The plan would fulfill some Trump campaign goals but rely heavily on state and local government for much of the money.

A man works in May on the Southern Nevada portion of U.S. Interstate 11 near Boulder City, Nev. President Donald Trump released a long-awaited infrastructure plan on Monday. The $1.5 trillion proposal would fulfill a number of campaign pledges, but would also heavily on state and local governments to produce much of the money. (AP Photo/John Locher, File)

Trump said on Twitter that it would be “a big week for Infrastructure. After so stupidly spending $7 trillion in the Middle East, it is now time to start investing in OUR Country!” He was meeting with state and local officials at the White House later in the day to drum up support.

The administration’s plan is centered on using $200 billion in federal money to leverage local and state tax dollars to repair America’s roads, bridges, highways, ports and airports.

Trump has repeatedly blamed the “crumbling” state of the nation’s roads and highways for preventing the American economy from reaching its full potential. Many in Washington believe that Trump should have begun his term a year ago with an infrastructure push, one that could have garnered bipartisan support or, at minimum, placed Democrats in a bind for opposing a popular proposal.

But the administration chose to begin with health care and relations with Democrats have become more strained during this turbulent, contentious year. The administration had previously pushed two “infrastructure weeks,” in June and August, but both were eventually sidetracked by other events.

This time, the White House is grappling with the fallout from the departure of a senior aide following allegations of spousal abuse, which has dominated the political dialogue since last week.

The massive plan’s path through Congress isn’t clear. Congress has just dealt with two federal government shutdowns and is turning its attention to immigration.

Amtrak workers continue renovation work in July beneath Penn Station in New York. The Trump administration’s infrastructure plan is centered on using $200 billion in federal money to leverage local and state tax dollars to repair America’s roads, bridges, highways, ports and airports. (AP Photo/Kathy Willens, File)

Administration officials previewing the plan said it would have two main components: an injection of money for new investments and to help speed up repairs of crumbling roads and airports, as well as a streamlined permitting process that would shorten the wait time to get projects underway. Officials said the $200 billion in federal support would come from reductions to current spending.

Half the money would go to grants for transportation, water, flood control, cleanup at some of the country’s most polluted sites and other projects.

States, local governments and other project sponsors could use the grants — which administration officials view as incentives — for no more than 20 percent of the cost. Transit agencies generally count on the federal government for half the cost of construction projects, and federal dollars can make up as much as 80 percent of some highway projects.

Meanwhile, about $50 billion would go toward rural projects — transportation, broadband, water, waste, power, flood management and ports. That money would come in response to criticism from some Republican senators who believe the administration’s initial emphasis on public-private partnerships would do little to help rural, GOP-leaning states

The initial response to the proposal was divided.

Jay Timmons, president of the National Association of Manufacturers, saluted Trump “for providing the leadership we have desperately needed to reclaim our rightful place as global leader on true 21st-century infrastructure.”

“When ports are clogged, trucks are delayed, power is down, water is shut off, or the internet has a lapse, modern manufacturers’ ability to compete is threatened and jobs are put at risk,” said Timmons. “There is no excuse for inaction, and manufacturers are committed to ensuring that America seizes this opportunity.”

But a number of Democrats and the U.S. Chamber of Commerce have pushed the administration to commit far more federal dollars, funded by tax increases, or by closing tax loopholes. And environmental groups have expressed concerns.

“President Trump’s infrastructure proposal is a disaster,” said Shelley Poticha, of the Natural Resources Defense Council. “It fails to offer the investment needed to bring our country into the 21st century. Even worse, his plan includes an unacceptable corporate giveaway by truncating environmental reviews.”