After the draft version of President Trump’s signature infrastructure plan leaked to Axios last month, the administration has now released the full version of the document following the release of this morning’s budget outline. The complete plan skews closely to the outline, laying out $200 billion in federal dollars with the expectation that the private market would generate an additional $1.2 trillion in funding.
The depreciation model from the draft has been kept, meaning that older or existing projects will face a severe disadvantage when asking for federal money from the $100 billion “incentives program.” The same restrictions on grant funding have also been carried over, meaning that no project could receive more than 20 percent of its funding from the government, a restriction certain to stymie the New York-New Jersey Gateway Project.
Funding for mass transit is disproportionately disadvantaged in the final plan. As with the draft, a shift to funding projects via state and private dollars means that projects with a low return on investment, such as public transportation, are likely to be passed over. While roads and highways are worth investing in because of the potential for tolls, trains rarely provide the same money-making potential. As such, the proposal would also roll back federal toll restrictions and allow tolling across any interstate highway.
Meanwhile, @Penn @Wharton is already out with a budget model simulation of the infrastructure plan, finds it boosts GDP by zero-0.5% and debt 0.4-0.9% by 2027. https://t.co/Z8lam8osV2
— Lydia DePillis (@lydiadepillis) February 12, 2018
While the bones of the final plan are the same as the earlier version, there are some new surprises. In an attempt to streamline the construction process, all permitting would take only 21 months, with a final decision three months afterward. This two-year process would be stewarded by a single federal agency, which would see the project along from the application to approval phase. Any project receiving federal funding would have two-year milestones set up, and a failure to meet those goals would lead to a voiding of its grant.
Environmental groups have already raised the alarm over truncating the permitting phase to less than two years, claiming it would gut environmental requirements and study periods. Judicial reforms proposed later in the document would seem to back this claim up, as the plan, if passed, would curtail the amount, and lengths, of any lawsuits filed against a project.
$20 billion has also been set aside for a so-called “Transformative Projects Program,” which would fund “ambitious, exploratory, and ground-breaking project ideas that have significantly more risk than standard infrastructure projects, but offer a much larger reward profile.”
Also of note is the proposed expansion of the EPA’s ability to regulate water infrastructure, including a newfound authority over flood risk management, and likely any climate change mitigation measures. It’s worth mentioning that Trump’s plan would drop cross-state licensure requirements for anyone wishing to work on a project that has received federal funding, something that has been a hot button issue for AN’s readers in the past.
While the infrastructure bill and accompanying budget released by the Trump administration would reorganize the American economy and privatize much of the country’s infrastructure, it’s extremely unlikely that Congress would pass it. Federal spending for the next two years has already been set after a recent budget deal was hashed out on February 9th, and this bill probably wouldn’t be able to achieve the necessary broad bipartisan support.
Read the full text of the proposed infrastructure plan here.