February 12, 2018 President Trump submits infrastructure framework President Donald J. Trump February 12, 2018, submitted his "Legislative Outline for Rebuilding Infrastructure in America" to Congress. In his transmittal message, the President urges Congress to act soon on infrastructure legislation, describing the Nation's infrastructure as in "an unacceptable state of disrepair, which damages our country's competitiveness and our citizen's quality of life." The release follows Congress broadly addressing infrastructure needs in the recent budget agreement that, subject to appropriations, provided an additional $20 billion in Federal spending over two fiscal years for infrastructure "including programs related to rural water and wastewater, clean and safe drinking water, rural broadband, energy, innovative capital projects, and surface transportation." Highlights of infrastructure framework's funding and financing proposals The Trump administration's proposal asks Congress to provide $200 billion in Federal funds, spread out over ten fiscal years, to spur "at least" $1.5 trillion in infrastructure investment with partners at the State, local, tribal, and private level. The Federal funds would be primarily allocated to a combination of new incentives programs and enhancements of existing Federal infrastructure financing and bond programs designed to encourage non-Federal infrastructure investments. The new programs, which require authorization and appropriations by Congress, include: — Infrastructure Incentives Program ($100 billion, divided among the US Dept. of Transportation, US Army Corps of Engineers, and US Environmental Protection Agency) — to incentivize states and localities by awarding grants with criteria prioritized to projects that attract new, non-Federal revenue streams for infrastructure investments. — Rural Infrastructure Program ($50 billion, 80% provided to States via formula and 20% via grants) — eligible usesinclude transportation (roads, bridges, etc.), broadband, water and waste, power and electric, and water resources. — Transformative Projects Program ($20 billion, administered by the Department of Commerce) - support projects that "fundamentally transform the way infrastructure is delivered or operated." In addition, the President's legislative plan allocates 10% of the overall funds ($20 billion) to bolster existing loan programs that provide State and local governments with enhanced opportunities to finance large-scale infrastructure projects under terms that are more advantageous than commercially available in financial markets. Specifically, eligibility would be expanded under the following loan programs: — Transportation Infrastructure and Innovation Act (TIFIA) Also under the category of infrastructure financing, the President's legislative plan seeks $6 billion to create flexibility and broaden eligibility to facilitate use of Private Activity Bonds (PABs). (The House version of the "Tax Cuts and Jobs Act" proposed repealing the exclusion from gross income for interest on PABs, but the provision was not included in the final version of the bill.) The proposal would require "public attributes" for infrastructure projects, broaden the categories of eligible facilities, eliminate the Alternative Minimum Tax preference, and remove State volume caps on PABs. In addition, the plan calls for "change-of-use" provisions to preserve the tax-exempt status of government bonds and encourage private-leasing of projects. Finally, the President's legislative plan would allocate 5% of the overall funding ($10 billion) to a Federal Capital Revolving Fund to finance purchases, construction or renovation of federally owned domestic civilian real property. It seeks to address the deferred maintenance backlogs of the Department of the Interior, including the National Park Service, by establishing a new Interior Maintenance Fund at the US Treasury using revenue from mineral and energy development on Federal lands and waters. It also proposes to streamline and improve the disposal of Federal real property, notably by authorizing federal divestiture of "assets that would be better managed by state, local, or private entities," including specified transmission assets, airports, and parkways. Infrastructure framework's regulatory and permitting reforms The President's legislative plan contains a wide-variety of proposals to "eliminate regulatory barriers" with the overall goal to "remove barriers to the development and improvement of transportation infrastructure in our Nation." To facilitate transportation projects, for example, the plan proposes to allow States greater flexibility to establish tolls on Interstate highways and reinvest revenues. A proposed change in Federal-aid highway policy would allow States who repay Federal investments to eliminate "perpetual application" of federal requirements applicable to a project. Other proposed "flexibility" changes in Federal policies would apply to transit, rail, airports, and water infrastructure projects. Many of these reforms would require amendments to existing statutes. Similarly, significant changes to existing law, policy, and practices are set forth in the President's legislative plan for infrastructure permitting improvement. The stated goal is to deliver projects in a less costly and more time effective manner by creating a new, expedited structure for environmental reviews, delegating more decision-making to States, and enhancing coordination between State and Federal Reviews. Specifically, significant changes are proposed to be made to environmental reviews under the National Environmental Policy Act (NEPA). The President's legislative plan seeks to reduce delays and overlapping agency reviews by requiring firm deadlines for decisions and establishing a "One Agency, One Decision" environmental review structure coupled with other reforms to NEPA practices. Congressional outlook Release of the Trump administration's infrastructure framework is anticipated to be the catalyst for Congressional hearings. Key committees with legislative jurisdiction include House Transportation and Infrastructure, Energy and Commerce, Natural Resources, and Ways and Means along with Senate Environment and Public Works, Commerce, Banking, Energy and Natural Resources, and Finance. However, the President's legislative plan does not resolve the critical issue of how to pay for the infrastructure initiatives. Proposals to raise federal fuels taxes to fund infrastructure investments have yet to garner significant traction in Congress. Revenue offsets, direct Federal spending levels, and permitting reforms are among the many contentious policy matters that must be addressed by Congress in the process of enacting the plan, or components thereof, into law. Attached are the "Legislative Outline for Rebuilding Infrastructure in America" and a fact sheet. ———————————————
——————————————— Legislative Outline
Fact Sheet
| |||||
| |||||
