Leaked Trump Infrastructure Plan?

Someone claims to have obtained a leaked document relating to the mythical Trump infrastructure plan. The document is sketchy and contains no hard dollar figures, but it gives an idea of what might be in a final plan.

The document proposes seven different initiatives or programs. The largest, called the Infrastructure Incentives program, would get half of any appropriations to pay for up to 20 percent of the cost of “core infrastructure projects” including transport, water, power, superfund, and flood control projects. The document doesn’t seem to distinguish between new projects and rehabilitation of existing ones, so the politicians who seek the funds would probably be biased in favor of new. Projects would be rated on a variety of criteria the most important of which would be the ability of the state or local government to sustain financing for the project.

Rural infrastructure is the second-largest program, getting 25 percent of funding for transport, water, power, and broadband. The funds would be distributed as block grants rather than matching funds, based on each state’s population and rural road miles.

The third-largest program, getting 10 percent of federal funds, is called the transformative projects program. These are supposed to be projects that have a possibility of a big payoff but are too risky for the private sector to invest in. (Has Trump heard of venture capitalists?) Federal funds would pay for up to 30 percent of demonstration projects, 50 percent of planning, and 80 percent of capital costs of transport, water, energy, commercial space, and telecommunications projects.

The fourth-largest program, getting 7.05 percent (is that supposed to be 7.50 percent) of federal funds, is an expansion of existing lending programs such as TIFIA (for transportation), RRIF (for railroads), and WIFIA (for water) funds. More money would be available for lending under these funds.

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This adds up to 97.05 (or 97.50?) percent of whatever federal monies are spent. Two other programs are mentioned without listing what share of funding they would get. These are a public lands infrastructure program that would get money from federal mineral and energy revenues and an expansion of tax-exempt private activity bonds to more kinds of infrastructure including ports and airports.

The leaked document makes no mention of public-private partnerships. Since one faction of the Trump administration is an ardent supporter of such partnerships, it is likely that this document is only one of several competing infrastructure plans.

The biggest weakness in this proposal is that it will end up spending most, and possibly all, new infrastructure money on new projects and little or none on maintenance and rehabilitation of existing infrastructure. Yet the supposed need for increased federal infrastructure spending is the claim that America’s infrastructure is in poor shape. This supports the idea that this claim is merely a cloak for politicians who want to hand out funds for highly visible new projects and contractors who want to get those funds.