Trump Infrastructure Plan Relies Mostly on Non-Federal Funding Sources


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The infrastructure plan is broken down into four objectives: stimulating $1.5 trillion in new investments and infrastructure, shortening the permitting process to two years, investing in rural infrastructure and improving workforce training. Trump will highlight that proposal Monday in a meeting at the White House with state and local officials.

The administration official suggested Gateway could seek funding from both the $100 billion and the transformative program funds.

A senior administration official insisted the plan was not shifting responsibilities to the states.

The official said the default mindset for how to fund infrastructure projects needs to shift. The Harvard CAPS-Harris poll surveyed 2,177 registered voters.

Trump is set to host a meeting with state and local officials on his proposal Monday, but it is not clear if any of them will be from NY. The caucus includes more than 40 of the most conservative House members.

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Congress could still develop its own funding.

"Taxes are one of the ways that state and local governments could raise revenues, but are certainly not the only ways", another senior administration official told CBS News.

In 2015, lawmakers patched $70 billion from sources such as a Federal Reserve surplus, Customs and Border Protection fees and the sale of part of the strategic petroleum reserve in order to provide $305 billion for the last five-year highway bill. But the tax has remained 18.4 cents per gallon since 1993, and it hasn't kept pace with inflation as cars became more fuel-efficient.

"When we roll out the budget on Monday. you are going to get a chance to see how we can avoid that future", Mulvaney said.

While Trump's plan would set aside $50 billion for rural infrastructure programs, it doesn't give special preference to projects with regional or national significance, like the Gateway project. The precise trade-offs aren't designated.

The federal government traditionally provided 80% of funding for qualified highway construction.

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Days after he signed a plan to boost spending by almost $300 billion, President will propose a new 2019 budget his aides said will try to undo some of that increase, in what they called an attempt to "bend the trajectory down".

House Speaker Paul Ryan (R-Wisc.), when he used to chair the House Budget Committee, routinely proposed tax and spending outlines that would eliminate the deficit over 10 years, even though critics said his changes would lead to a severe curtailment in government programs. But they could get help building those projects more quickly. Every time it has, Congress has had to scramble to find money from other parts of the federal budget to plug the holes in the transportation fund.

The last $10 billion would go to a capital financing fund divvied up by Congress.

Tolls would be one way to spur private investment in roads or bridges.

Trump's plan also does not address one of the top infrastructure priorities of state and local leaders: fixing the Highway Trust Fund.

The principle is based on polls which show that the public would prefer to invest locally, in projects that they benefit from, rather than send money to Washington and wait for the Federal government to invest - in a process that is hampered by the Washington bureaucracy that has often been a target of the President.

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"This is not a real infrastructure plan - it's simply another scam, an attempt by this administration to privatize critical government functions, and create windfalls for their buddies on Wall Street", DeFazio said. But the 10-year yield closed at 2.86 percent on Friday, and the Federal Reserve is expected to hike rates three times this year.