ConDig (13-Feb-18). Leaders of the U.S. construction industry have tacitly backed long-awaited details of President Trump’s $1.5 trillion infrastructure upgrade plan.
The bill earmarks $200 billion in federal funds designed to generate at least $1.5 trillion in infrastructure investments with partners at the state, local and private level. It also sets out a plan to spur new investments in rural America; return decision-making authority to state and local governments and remove regulatory barriers that Trump believes needlessly get in the way of infrastructure projects.
Called the “Legislative Outline for Rebuilding Infrastructure in America,” it also features a proposal to streamline and shorten the permitting process for infrastructure projects and supporting and strengthening America’s workforce.
Under the federal funding, $100 billion will set aside be for the creation of an incentives program to spur additional dedicated funds from states, localities and the private sector, while $20 billion will be for expanding infrastructure financing programs.
But Jack Jacobson, spokesperson for Construction Employers of America, said that despite the association welcoming the plan, it is concerned over the lack of federal funds.
“The President wants to invest in the repair and construction of $1.5 trillion in infrastructure projects over ten years; we are concerned how this level of investment can be achieved with only $200 billion in real Federal dollars,” he said.
“The Administration’s plan would provide partial grant funding for roads and bridges, airports, water and wastewater systems, waterways, energy systems, rural needs, veterans’ care facilities, brownfield and superfund sites and more. To accomplish this investment, non-federal revenue streams, including state and local funding as well as private investment, would be leveraged with federal funds.”
Stephen E. Sandherr, chief executive officer of the Associated General Contractors of America, said that while the tax cuts appear to be boosting the private sector, economic growth is being constrained by traffic-clogged roads, aging bridges, decaying waterways and overburdened clean water systems.
“President Trump made a strong and compelling case for Congress to work in a bipartisan manner to provide an additional $1.5 trillion in new infrastructure investments. These investments will help improve aging public works and allow state and local officials to make the kind of investments needed to maintain our global economic competitiveness,” he said.
“As significant is the President’s call to make long-overdue reforms to a federal approval process that leaves needed projects languishing through years of redundant reviews. Finding a way to make decisions in months, instead of years, while still holding projects to a high standard for approval, will save taxpayers billions, restore public confidence in our ability to invest wisely and continue to protect the environment.”
He added that the president was also right to seek to increase federal investments in career and technical education so the industry can prepare displaced workers from other sectors of the economy and new workers for high-paying careers in construction.
“This package includes a number of provisions that are designed to spur economic and job growth that will also boost the housing sector,” said National Association of Home Builders (NAHB) chairman Randy Noel.
“Specifically, it will streamline the regulatory and permitting process to get new projects off the ground, place an emphasis on vocational training and delegate authority back to state and local governments.”