Trump infrastructure plan is a starting point
President Trump recently unveiled his $1.5 trillion federal infrastructure proposal. The proposal would dole out $200 billion to states in matching federal money but require state and local governments to raise the remainder through taxation or public-private partnerships. The initiative also would allow states to generate their share by tolling.
The proposal did not specify sources for the matching federal money, saying it would result from cuts in other areas. The proposal also did not address the impending insolvency of the federal Highway Trust Fund.
The trust fund’s primary revenue source is fuel taxes, which have not been raised since 1993.
“As our friend George Wolff mentioned in the Keystone Transportation Funding Coalition newsletter, the president’s proposal is a first step in addressing our infrastructure needs, but we have a long way to go.” said PHIA Managing Director Jason Wagner. “In particular, this proposal must return the Highway Trust Fund to solvency to meet the states’ needs over the long term.”
