At the kickoff to Infrastructure Week last Monday, Transportation Secretary Elaine Chao indicated that the administration’s current thinking is that of the $1 trillion they hope to see spent, the federal government will come up with $200 billion and they expect private financing to cover the rest, presumably with tax credits for investors. On Wednesday, testifying before the Senate Committee on Environment and Public Works, Chao stated that “nothing is off the table” in terms of funding, including a possible gas tax increase, something Republicans have fought against for years. Still Chao says that the administration will issue a “statement of principles” on the infrastructure plan by the end of the month.
I remain optimistic that there will be some sort of infrastructure money agreed on in Washington, but it’s incumbent on all of us in the construction industry to push for this to happen sooner rather than later. With the President’s continuing distractions and with 2018 a congressional election year, the window of opportunity is small. But every member of Congress would love to go home saying that they were part of the solution to our nation’s degraded infrastructure, even with a small tax increase attached. Chao also said, “We are fortunate to have a president who understands the challenges of infrastructure perhaps better than any other leader in recent memory.” All that makes this the best chance in many years for a significant and meaningful investment; let’s hope it isn’t squandered.
If you’re interested in how the construction industry can step up its game to build great infrastructure in this country, plan to attend the Infrastructure Imperative, November 6 to 8 in Cleveland. At this Hanley Wood conference, we will explore productivity and quality in infrastructure construction. Click here to get on the list for more info as it develops.