Trump to Congress: Produce $1.5 Trillion Infrastructure Bill, Streamline Permitting

President Trump
Win McNamee/AP Pool

In his first State of the Union address, President Donald Trump called on the Republican-led Congress to prepare a $1.5 trillion infrastructure bill that would rely heavily on private-sector investments.

Trump added the legislation must also reduce the permitting process for certain infrastructure projects from 10 years to two years to expedite project completions and overcome delays from duplicative reviews.

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While the 80-minute speech was billed as an opportunity for Trump鈥檚 builder-in-chief reputation to shine, he offered few details for his plan 鈥 specifically, how to fund the bill鈥檚 $1.5 trillion top-line goal.

Earlier reports indicated the plan would rely on $200 billion in federal funding that would lure enough private investment to compel the 10-year program to its $1.5 trillion mark. Previous reports also noted the plan would provide $25 billion for rural projects.



鈥淓very federal dollar should be leveraged by partnering with state and local governments and, where appropriate, tapping into private-sector investment to permanently fix the infrastructure deficit,鈥 Trump told Congress, his Cabinet, dignitaries and guests from the floor of the House on Jan. 30.

鈥淲e can reclaim our building heritage. We will build gleaming new roads, bridges, highways, railways and waterways across our land. And we will do it with American heart, American hands and American grit,鈥 Trump added.

The proposal鈥檚 legislative principles are expected to be unveiled around the same time as the White House鈥檚 fiscal 2019 budget request in mid-February. The office of Secretary of Transportation Elaine Chao did not offer Transport Topics a specific date for its release.

American Trucking Associations Chairman Dave Manning praised Trump鈥檚 acknowledgment that infrastructure investments enhance local and regional economies. And the freight industry would benefit from infrastructure improvements. According to the American Transportation Research Institute, congestion added $63.4 billion in operational costs to the trucking industry in 2015.

鈥淎s the economy continues to grow, it鈥檚 going to be important for us to have less congestion and better roads and bridges just to be able to move those goods efficiently,鈥 said Manning, who is president of Tennessee-based TCW Inc.

Manning also suggested the White House and Congress consider adoption of ATA鈥檚 Build America Fund proposal. The fund, according to ATA estimates, would generate $340 billion in its first 10 years through a 20-cents-per-gallon fee on wholesale transportation fuels collected at the terminal rack.

ATA President Chris Spear commended Trump and pledged to work with policymakers to make infrastructure investment a 2018 priority.

鈥淲hile the state of our union is strong, the same cannot be said about the state of our roads and bridges,鈥 Spear said. 鈥淲e join the president in calling on Congress to work with the administration on an infrastructure package that raises real revenue to meet the enormity of this challenge.鈥

鈥淎ny infrastructure policy we advance must help improve the efficiency of freight movement, and I stand ready to roll up my sleeves with the president and get to work,鈥 Rep. Sam Graves (R-Mo.), chairman of the Highways and Transit Subcommittee, added in a statement to Transport Topics.

Ahead of Trump鈥檚 speech, Senate Environment and Public Works Committee Chairman John Barrasso (R-Wyo.) said the president鈥檚 real estate experience gives him an edge. He described the president as 鈥渁 person who has a long history as being a builder, an entrepreneur, and knows the impact of regulatory relief that we need to try to streamline the systems to make it easier to get projects started and finished on time.鈥

Barrasso added, 鈥淲e鈥檙e looking to work with our Democrat colleagues in a bipartisan way.鈥

If Democrats refuse to collaborate, it would be out of a desire to deny Trump a victory before the November midterm elections, Transportation and Infrastructure Committee member Rep Rodney Davis (R-Ill.) argued shortly after Trump鈥檚 speech. 鈥淵ou can鈥檛 get much more bipartisan than infrastructure,鈥 Davis told C-SPAN鈥檚 Paul Orgel.

But Democrats have yet to signal support for Trump鈥檚 strategy. Sen. Chuck Schumer of New York, the chamber鈥檚 top Democrat, said the White House has been unwilling to collaborate with his party on infrastructure and other policy matters.

鈥淥n infrastructure, are they going to do what they鈥檝e done in the past? Put out their own bill and say, 鈥楾ake it or leave it.鈥 That wouldn鈥檛 be very bipartisan,鈥 Schumer said before Trump鈥檚 speech.

Rep. Peter DeFazio of Oregon, the ranking Democrat on the House transportation panel, was less kind: 鈥淭he president once again delivered a nothing burger, providing only generic talking points without any specific details about how he plans to address our infrastructure crisis.鈥

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Trump gestures at the conclusion of his address. (Pablo Martinez Monsivais/AP)

Transportation panel member Rep. Brenda Lawrence (D-Mich.) noted it is up to the Republicans to schedule legislative hearings and votes on an infrastructure package. 鈥淭here鈥檚 not a person who doesn鈥檛 recognize and know we need to fix our infrastructure, but, you know, the devil鈥檚 in the detail,鈥 she told C-SPAN after the speech. 鈥淪o that鈥檚 where I want us to have some real dialogue.鈥

Last year, Senate Democrats unveiled a $1 trillion infrastructure plan that would rely on direct federal funds. GOP leaders have yet to consider their proposal.

Trump鈥檚 inner circle, meanwhile, is championing potential economic incentives likely to come from a massive infrastructure plan as well as the need to win over Democrats.

Chao said Trump鈥檚 鈥渇ocus on infrastructure is a historic opportunity to create bipartisan legislation to revitalize our roads and improve the quality of life for all Americans by delivering much-needed improvements more quickly, so our country can remain globally competitive.鈥