The Trump Administration on Monday released its 2021 budget request, and within it, has proposed $1 trillion in infrastructure investment over the next decade.
This investment package has two major components. The first would be an $810 billion, 10-year reauthorization of surface transportation programs.
The proposal includes $602 billion for highway infrastructure and other transportation investments. This represents approximately a 12% increase over 2020-plus-inflation spending levels. According to estimates by Eno Center for Transportation, about $263 billion in additional revenues over currently enacted amounts would be necessary to keep the Trust Fund solvent over that period.
The President’s proposal also includes $16 billion for Transportation Infrastructure Finance and Innovation Act (TIFIA) loans and Better Utilizing Investments to Leverage Development (BUILD) grants. TIFIA loans and BUILD grants can be used for road construction, as well as other infrastructure needs. The plan also includes $155 billion for transit; $20 billion for traffic and motor carrier safety; $17 billion for rail; and almost $1 billion for pipeline and hazardous materials safety.
A Second Component
A second major component of the President’s plan is an additional $190 billion in investments across a range of infrastructure sectors, including water and broadband. The Budget proposes that this funding be allocated to several programs, including some with highway and bridge investment potential. They include:
- $60 billion for a new Building Infrastructure Great grants program. The program would accelerate core infrastructure “mega-projects,” which are prone to excessive delays. This program will accelerate delivery of such projects across a range of sectors, including surface transportation investments, among others.
- $50 billion for a new Moving America’s Freight Safely and Efficiently program. This program will support projects with significant economic, mobility, and safety benefits to the nation’s strategic highways and other networks. The aim is to open bottlenecks and improve safety by, for example, adding capacity, deploying effective technologies, and expanding truck parking infrastructure.
- $35 billion for a new Bridge Rebuilding program. This program will make targeted investments in critical bridge infrastructure to restore them to good condition. The plan calls for $12 billion for “off system” bridges and $23 billion for larger bridges.
The impact of these investments will be amplified by the permitting reforms put in place since the beginning of this Administration, including the “One Federal Decision” policy, which we reported on January 15. In announcing the program, the Administration says they look forward to working with Congress to enact these programs.
Two weeks ago, three Democratic Committee chairs unveiled a vision for a five-year, $760 billion infrastructure investment framework, which we reported on January 31. ACPA is encouraged by both the Administration and Congress’ focus on infrastructure investment. Although it’s too early to tell whether a bill is likely to be signed into law during this election year, these measures are positive steps in the direction of reauthorization either this year or next. Click here to see background and additional details about the Administration’s infrastructure proposal.
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