Trump budget said to include $200 billion for infrastructure

From Transport Topics via Bloomberg: President Donald Trump will propose spending $200 billion in federal funds over 10 years to spur investment in the nation’s infrastructure, a senior Office of Management and Budget official said. The administration’s aim for the funds, which will be part of the budget proposal Trump plans to release on May…

Road construction ahead

From Transport Topics via Bloomberg:

President Donald Trump will propose spending $200 billion in federal funds over 10 years to spur investment in the nation’s infrastructure, a senior Office of Management and Budget official said.

The administration’s aim for the funds, which will be part of the budget proposal Trump plans to release on May 23, is to provide incentives for at least $800 billion of infrastructure investment by the private sector and state and local governments, said the official, who spoke on condition of anonymity because the plans were not yet public.

Administration officials are examining the use of federal grants and loans as well as other vehicles to spur the investment, much as the existing Transportation Infrastructure Finance and Innovation Act loan program leverages federal funding for state and local spending, the official said.

One option likely to be part of the plan is asset recycling, in which the federal government offers an incentive to encourage a state or municipality to lease a public asset to the private sector in return for an upfront payment that can be used for other projects that lack funding, according to the official.

Most U.S. infrastructure is owned and controlled by states, localities and private entities. Trump’s plan, the official said, will be designed to encourage them to secure their own funding and financing rather than relying on the federal government.

Trump promised throughout the campaign and since taking office to invest $1 trillion over 10 years to upgrade roads, bridges, airports and other assets. The $200 billion in the budget being released next week would be mostly spent between years two through six in the 10-year budget window, the official said, adding that it would be offset to avoid adding to the deficit. The official didn’t specify how.

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