White House unveils infrastructure proposal

The $1.5 trillion package focuses on public-private partnerships as well as state and local funding to rebuild U.S. infrastructure

Funding News February 12, 2018
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White House

The White House today officially released a 55-page proposal for President Trump's long-awaited infrastructure overhaul.

 

The plan puts forth a framework for lawmakers to craft legislation for a $1.5 trillion infrastructure package that would focus on public-private partnerships and funding from state and local governments.

 

The plan is structured around four main goals: generating $1.5 trillion for an infrastructure proposal, streamlining the permitting process down to two years, investing in rural infrastructure projects and advancing workforce training. The federal government would contribute $200 billion to the package.

 

The administration said it used input from state and local officials, members of Congress, industry leaders and federal agencies to compile the framework. The proposal confirms many previously leaked details about a White House rebuilding initiative, in which state and local governments, in addition to private investment, would foot much of the bill.

 

The plan is likely to face opposition from Democrats, who have already called for more direct federal investment; they released their own plan last week that boasted $1 trillion in government spending.

 

Half of the federal seed money would go toward an incentive program to match financing from state and local governments investing in rebuilding projects, while a quarter of the appropriations would be used for rural projects in the form of block grants to states so governors may decide where to invest.

 

About $20 billion would be for “transformative programs” meant for new projects rather than rehabilitation of old infrastructure. Another $20 billion is allocated to expand the use of loans and private activity bonds, a common tool used to fund infrastructure projects. The last $10 billion would go into a "capital financing fund."

 

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Source: The Hill

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