The White House and Senate Republicans have compromised on a $1.2 trillion infrastructure bill. Meanwhile, President Biden and Republican leaders have agreed to a $579 billion infrastructure bill.

Since $579 billion is less than half of $1.2 trillion, both of these statements can’t be true — and yet they are. The difference is that the $1.2 trillion includes “baseline spending,” or the amount that would have been spent on infrastructure even if no bill were passed. The actual infrastructure bill would only include $579 billion of new spending. That’s quite a concession on the part of the White House, which had originally proposed $2.3 trillion in new spending, or nearly four times as much as the bipartisan agreement. On the other hand, $579 billion is exactly $579 billion more than Republicans had proposed to spend before Biden released his original proposal on March 31.

At the same time, the so-called baseline appears to represent the amount that would be spent on surface transportation by the bill proposed by House Democrats, or about $78 billion a year. This is a large increase from the amount that has been spent in the past few years, which has been about $55 billion a year. In order to get the total above $1 trillion, allowing the president to save some face, the $78 billion a year is extended for eight years, even though the House bill would authorize only five years of spending. Continue reading →

Democrats on the House Transportation and Infrastructure Committee are proposing to increase transportation spending from $305 billion over the last five years to $547 billion over the next five years. Although this is supposed to be a five-year bill, it will really be a six-year bill spending at least $656 billion, as Congress is never able to pass a major bill during an election year and will simply extend it a sixth year at the then-current rate of spending.

Many megaprojects, such as Boston’s Big Dig and Dulles MetroRail (shown here) are built not because they are needed but because politicians can get the federal government to pay for them with “free” money. The proposed transportation bill will encourage more such megaprojects. Photo by Tom Saunders, Virginia Department of Transportation.

The proposed bill would increase spending on highways by 54 percent, double spending on transit, and triple spending on Amtrak. Although transit and Amtrak together carried 1.0 percent of passenger miles before the pandemic and less than 0.6 percent of passenger miles in the last year, the bill would give them 37 percent of the federal funds. Moreover, while federal funding of roads would be hampered by a “fix-it-first” rule, federal spending on transit would have no such limit even though transit infrastructure is in much worse shape than highway infrastructure. Continue reading →

Yesterday, Connecticut Senator Chris Murphy tweeted:

“You don’t have to look hard to figure out why China is gaining on us so rapidly.

“Beijing to Shanghai
– distance: 800 miles
– train time: 4.3 hours

“Boston to DC
– distance: 440 miles
– train time: 7 hours” Continue reading →