Monday, January 1, 2018

How Trump wants to fund infrastructure improvements: He wants States and Cities, with some private funding, to contribute more to projects than the federal government.

Here's how Trump's infrastructure plan stacks up against the needs of America's roads and railways - and why it too might derail

The Amtrak crash earlier this month refocused President Donald Trump's energy on rebuilding the country's infrastructure, and Trump has touted his plan recently. America's infrastructure system is dilapidated, fragile, and unsustainable after decades of neglect.
From article, (The biggest problem Trump's infrastructure plan will have to tackle is where to find the $1 trillion needed to repair and modernize America's transportation, power, and water networks.
So far, Trump's plan includes only $200 billion in federal funds — 20% of the necessary funding for the plan — for infrastructure projects and rehabilitations across the country, and expects the rest to come from private, state, and other local sources, according to Politico. A combination of funding sources seems to be the right move — the ASCE encourages "dedicated public funding sources on the local, state, and federal levels." 
Private investors are certainly willing to engage in major infrastructure projects, and have already started putting money on the line for such projects without Trump's help. But without plans at the local level, these funds can achieve little, according to Scott Zuchorski, senior director of Fitch Rating's global infrastructure group.
"It's a good thing money is available," Zuchorski told the Washington Examiner. "But to put the money to use, there have to be projects. And that requires public-sector support, from a financial standpoint, and to be project champions to ensure the projects get done."
 A look at just a few of the problems facing America's infrastructure network reveal the deep inadequacies that have resulted from this decades-long lack of attention. Almost 40% of America's bridges are 50 years old or older according to the ASCE, and 9.1% of them are in structurally deficient. Roads and highways are becoming more dangerous as a result of inattention, with one out of every five miles of highway being in "poor" condition. Railways and waterways, like bridges and roads, suffer from out-dated architecture, and aging pipe systemspoorly maintained dams, and strained power grids that all require immediate attention over the next few years if they are to continue functioning in the face of mounting usage and environment-related challenges.
At the root of this problem is money. Insufficient funding was one of the leading causes for why the aging US infrastructure system had not been improved — bridges alone require $123 billion to be fully rehabilitated, and although major areas of infrastructure like freight rail has been able to garner large investments for ongoing projects, passenger trains still suffer from a lack of funds.
 Trump has to figure out how to secure even the slim federal allowance of $200 billion he hopes to put forward. So far, he has pledged to cut other federal programs to do so, and has floated raising the federal gasoline tax, which has remained the same for more than 20 years. Rep. Peter DeFazio of Oregon, the top Democrat on the House Transportation Committee, told Politico that the options for Trump are dwindling.
Trump has also pledged to cut Amtrak spending, which operates a huge portion of American railways.
As for the remaining $800 billion, the Trump administration has stated that it wants states, local governments, and investors to compete for federal funding, and to put forward funds of their own. The ASCE has advocated having the federal government come up with tax credits for states that raise money, and recommended that Washington match local funds.)

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