CAGTC Members,
It was a busy day in the D.C. transportation world! I have four things to tell you about:
- The U.S. Department of Transportation (USDOT) published a 68 page document with transportation-specific details for the Administration’s infrastructure plan. You can find the document online here. The plan restates the four guiding principles we’ve heard from the Administration in regards to this proposal, including: 1) using Federal dollars to incentivize non-Federal investment; 2) addressing rural needs; 3) streamlining project delivery; and 4) investing in transformative projects that benefit everyone (page 1). While many have previously made this connection, the document explicitly states that USDOT is already applying these principles to existing infrastructure grant programs, like INFRA (page 1). Also of interest to CAGTC members, in previous statements, the Administration has been reluctant to discuss Highway Trust Fund (HTF) insolvency in conjunction with their infrastructure initiative. However, this document does discuss the Federal gas tax as being insufficient and unsustainable and states that by 2021, “when the FAST Act authorization comes to an end, Federal gas tax shortfalls will have grown to $13 billion annually, or the equivalent of a 10-cent per gallon tax increase.” (page 11). With these exceptions, the document primarily expands upon some of the Administration’s reasoning driving their policy proposals, and provides more details for the permitting reform provisions. I encourage you all to read the document and have included some additional takeaways below:
- The document describes a “misaligned Federal role.” It praises the creation of the Interstate Highway System but criticizes the fact that “the number of Federal transportation projects [has] multiplied” and says that “the use of Federal transportation funding to pay for a wide range of transportation projects has created an unhealthy dynamic in which State and local governments may hold back on beginning needed projects in the hope of receiving Federal funds.” (pages 5-6)
- The document laments that current funding is spent on projects that “do not support national interests thus preventing investment in projects that yield sustained progress toward a superior transportation system.” (page 7). However, it maintains the Administration’s heavy focus on empowering state and local decision makers, noting that “the Federal government will need to provide support and incentives for communities to move toward a model of greater ownership.” (page 15).
- In the document’s situational analysis, it includes a section on the “growing capacity and maintenance needs of our freight system” that focuses on system insufficiencies relative to growing needs. (pages 10-11).
- The document clarifies that funds for the Rural Infrastructure Program’s formula distribution will be made available in block grants to rural areas with a population of less than 50,000.
- The House Transportation & Infrastructure Committee held a hearing today titled “Examining the Administration’s Infrastructure Proposal.” Secretary Chao provided testimony. A recording of the hearing can be found online here. Please find a summary of relevant conversation here. Key takeaways from the hearing include:
- Most Representatives were pleased that the infrastructure plan opened the dialogue for a bill in Congress.
- Several Members of Congress were critical of the plan’s push for non-Federal funding and the Federal government’s role in infrastructure funding was mentioned multiple times.
- Congressman Lowenthal (D-CA) asked about freight programs specifically, noting the Administration’s budget request suggests cutting funding for programs, such as TIGER, that supports goods movement projects. He asked how the Administration’s infrastructure plan will advance freight projects. Secretary Chao acknowledged that freight is important but did not have an answer as to how the plan will address freight needs.
- Secretary Chao said we could see TIGER decisions as early as this week while INFRA awards should be out in early June or early summer.
- Secretary Chao would not say whether or not the Administration supports a gas tax increase, instead saying that all options are on the table.
- The New Democrat Coalition published their priorities for infrastructure investment today. The New Democrat Coalition is comprised of 60 House Democrats who “are committed to pro-economic growth, pro-innovation, and fiscally responsible policies… seeking to bridge the gap between left and right.” Their report has three main pillars: 1) funding infrastructure immediately through fixing the Highway Trust Fund gap and repatriation money while also working to solve longer term needs; 2) fixing existing infrastructure deficiencies and defining infrastructure as roads, bridges, airports, ports, and other non-transportation infrastructure types; and 3) fostering innovation through streamlining regulations and the permitting process and using P3s as well as other innovative tools effectively. You can find the full document here.
- Senate Democrats are slated to publish a $1 trillion infrastructure proposal tomorrow. While details are not yet publically available, we anticipate a plan that includes targeted freight infrastructure investment. More on this to come.
Thank you!
Katie Cross
Manager, Member Communications & Policy
Coalition for America’s Gateways and Trade Corridors
1625 K Street NW
Suite 1100
Washington, DC 20006
tradecorridors.org