Trump budget seeks billions for opioid abuse

Budget director warns interest rates may 'spike' on deficit

President Trump is planning to announce a massive $1.5 trillion infrastructure plan Monday, unveiling the administration's long-awaited proposal aimed at rebuilding the nation's dilapidated roads, bridges and other components that have fallen into disrepair.

How big would it be?

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Only $200 billion of that, however, would come from direct federal spending, according to White House aides. Local government officials will be able to apply for federal infrastructure grants and matching funds so long as they can provide a large portion of the funding themselves.

Half of the new federal money, $100 billion, would be parceled out as incentives to local government entities.

Michael Pagano, dean of the College of Urban Planning and Public Affairs at the University of IL at Chicago, said the Trump administration attempt to leverage local government funds for infrastructure may not work because municipalities don't have the money.

Axios obtained and released a draft of the plan last month. The proposal also would expand federal loan programs for such projects.

In addition, Trump said that Congress should move to streamline the process for those wishing to build new projects.

Currently, the process can take five to 10 years.

The White House maintains that an 80 percent match is just a suggestion, not a requirement. The White House would offset the new spending with unspecified cuts in other areas of the budget.

Mr Mulvaney, appearing on Fox News Sunday, acknowledged that the forecast for a $1.2 trillion deficit in 2019 was "probably close to being accurate" but that the administration would try to avoid that outcome.

At the Conference of Mayors in January, Gribbin explained that the Trump administration would not be proposing a specific funding mechanism for the infrastructure plan, saying that will be a conversation with Congress.

Congress passed and the president signed into law extensive federal tax cuts in December, but the president's plan calls for "new revenue streams" on the state and local level, including taxes and usage fees, a senior administration official said in a background call with reporters Saturday.

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.

"Following last week's congressional passage of a two-year spending plan, Mulvaney said the administration was also seeking "$21 billion to jumpstart key elements of the infrastructure initiative". Gribbin committed to leaving major pots of money intact, such as the Highway Trust Fund, but said that some existing spending may be "repurposed".

The White House argues that funding is only one component of the president's infrastructure plan.

He said the plan would also request federal funds for opioid treatment programs and improving the health of military veterans.

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