04/02/20 CAGTC: Congressional Leaders Discuss Potential Infrastructure Stimulus

Dear CAGTC Members,

As I’m sure you have heard, the third economic stimulus bill in response to the COVID-19 pandemic was signed into law last Friday. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided over $2 trillion in total funding, including approximately $114 in grants and formula funding for the transportation industry. While the phase three package focused on immediate mitigation funding for the public and certain impacted industries, some within Congress and the Administration are now reportedly setting their sights on a fourth stimulus bill of which they hope infrastructure investment will be a key component. Most sources cite late April/early May as the likely timeframe for such legislation.

In a tweet sent on Monday, President Trump indicated his support for a $2 trillion phase four bill “focused solely on jobs and rebuilding the once great infrastructure of our Country.” House Democratic leadership subsequently held a press conference discussing their infrastructure priorities for upcoming stimulus legislation. During the call, Speaker Pelosi (D-CA), Majority Whip Clyburn (D-SC), T&I Committee Chairman DeFazio (D-OR), and Energy and Commerce Committee Chairman Pallone (D-NJ) expressed their intention to incorporate their five-year, $760 billion infrastructure framework announced in January. A summary of this Moving Forward Framework can be found here. Speaker Pelosi noted that the House has been drafting a five-year proposal while the Administration’s plan would be for ten years, accounting for the difference in proposed total funding. Chairman DeFazio emphasized the importance of a long-term recovery package including infrastructure investment to boost the economy. He specifically spoke about increased funding for highways, roads, and bridges, expanded freight and passenger rail capacity, prioritizing infrastructure resiliency, and electric vehicle charging infrastructure. Other funding priorities highlighted by House leadership included broadband development, clean drinking water provisions, and a new provision providing $10 billion for the construction of community health centers. Speaker Pelosi added that upcoming legislation should include increased federal funding for state and local governments to combat revenue losses due to the pandemic.

Responses from congressional Republicans have been varied. Senate Majority Leader McConnell (R-KY) and House Minority Leader McCarthy (R-CA) have been skeptical toward the inclusion of infrastructure funding in a stimulus bill and even questioned the necessity of an additional relief package. House T&I Ranking Member Graves (R-MO) indicated he believed Congress could take a number of different approaches as the situation evolves. Along with expressing his intent to address infrastructure needs through bipartisan partnership, he also warned against a focus on “shovel-ready” projects as was the case in the 2008 stimulus bill stating, “We know now that ‘shovel-ready’ doesn’t work, and that more effective ways to get federal funding into projects and creating jobs is by speeding up the project permitting process and funneling available funding through good existing programs, such as the Federal-Aid Highway Program and the Airport Improvement Program.”

Thank you,

Cecile Entleitner
Manager, Member Communications & Policy
Coalition for America’s Gateways and Trade Corridors
1625 K Street NW
Suite 1100
Washington, DC 20006
tradecorridors.org
(202) 828-9100