President Trump Set To Unveil $1.5 Trillion Infrastructure Plan

President Trump Set To Unveil $1.5 Trillion Infrastructure Plan

Altogether, the official said the $1.5 trillion prediction is based on "state and local governments - how will they likely respond to this program". Those in which state and local governments pick up most of the tab will be viewed more favorably.

"This is the start of a negotiation - bicameral bipartisan negotiation - to find the best solution for infrastructure", said a senior official, who was not allowed to be identified under the ground rules for the briefing.

The first is that the country has been under-investing in infrastructure, leading a state of growing disrepair.

Details on other cuts were sparse, "we are going to eliminate a few things here and there", said the senior official. A vocal minority of GOP lawmakers have complained about this shift, but they proved no match for the bulk of the party last week when spending levels for the next two years were expanded.

The president will propose $200 billion in federal funding over $10 years, which could be used to leverage $1.5 trillion in new infrastructure investment, mostly through incentive grants and the enhancement of several federal loan programs.

The US$1.5 trillion will come from a range of incentives and instruments in which government funding will play a lesser role than they do now, instead being used to match and leverage local funding.

That's a radical departure from the way many projects are funded now. He called for sticking with the tradition of federal funding for infrastructure.

NY and Jersey have said they are unable to complete the project without sizable federal investment. Again, this plan puts a much greater burden on local taxpayers and users.

Days after he signed a plan to boost spending by almost $300 billion, President will propose a new 2019 budget his aides said will try to undo some of that increase, in what they called an attempt to "bend the trajectory down".

The U.S. government spends more money than it brings in through revenue, a gap known as the budget deficit. This program would block grant funds to governors who could then decide which infrastructure projects to prioritize in that state. The package also includes disaster relief funding, including $2.7 billion for schools affected by recent hurricanes and fires. These would be "projects that can lift the American spirit, that are the next-century-type of infrastructure as opposed to just rebuilding what we have now".

Asked how the $200 billion infusion would be paid for, the senior administration official cited "a whole series of places where the administration is suggesting reduced funding" in their soon-to-be-released budget, declining to be more specific than an assurance it would be paid for "out of savings from other areas of the federal budget".

"It could be anything", an administration official said of the non-federal funding sources.

Also due Monday is the Trump administration's $1.5 trillion infrastructure plan.

Government auditors note Congress transferred $140 billion to the Highway Trust Fund from 2008 through 2015. "So to the extent that communities are eligible for federal funds already, that eligibility remains".

The original plan was for Trump's new budget to slash domestic agencies even further than last year's proposal, but instead it will land in Congress three days after he signed a two-year spending agreement that wholly rewrites both last year's budget and the one to be released Monday.

The U.S. Chamber of Commerce has proposed hiking the federal gas tax, which hasn't gone up since 1993, to raise $394 billion over 10 years.

Over the weekend, the White House boasted that numerous objectives in the Trump plan already come under support from both major parties - although there are differences as to how exactly they should be achieved.

A federal agency with the most expertise will be designated as the lead agency and it will work with other agencies to coordinate the permitting process to reach a collective decision over a 21-month period.



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