US infrastructure needs repairs. But who should pay?

Opening the second year of his presidency with an address to the nation, President Trump launched a long-awaited initiative on infrastructure that is both bipartisan in spirit – and highly contentious.

It’s common ground as a priority, because the need is as obvious and widespread as the nearest airports, bridges, or water mains. It’s contentious because of a rift over funding – partly over sheer dollar amounts, but also over the proper government role. While Mr. Trump pitches reliance on state and local governments, aided by private-sector partnerships, Democrats are pushing a much stronger role for federal funding.

That state-federal rift between the parties isn’t limited to this issue, of course. But it’s one that now threatens deal-making on a concern that in many ways should be ripe for congressional compromise.

The Trump plan, still not released in full detail, tilts toward the states at a time when infrastructure planning and funding have already been moving in that direction. But experts say the dueling visions could be a theme that persists as a source of tension, even as the realities of a “deferred maintenance” America push the parties toward action.

“A lot of this [state-level emphasis] is based on a phenomenon that’s happening across the country, where states and cities and metro areas are raising their own taxes” to pay for infrastructure projects, says Robert Puentes, who heads the Eno Center for Transportation, a policy think tank in Washington.

The idea of localities taking a lead role in their own infrastructure is already well established, he says. But the challenge, he adds, is that “not all projects … are right for private investment,” and some communities that need investment don’t have money at hand to pay for it from taxes or user fees like tolls.

On top of that, some projects – such as a proposed new rail tunnel from New Jersey into New York City – span local, state, and federal purviews. The project matters to Manhattan-bound commuters, but also to flows of freight and people along the whole Northeast corridor. All this leaves plenty of room for debate over the proper federal role and purpose in infrastructure.

“That’s the real point of contention,” Mr. Puentes says.

A PLAN WITH SCANT DETAILS

Trump offered scant details during his televised State of the Union address in Congress Tuesday night, but he used the speech in part to paint himself as open to compromise with a Congress where Senate legislation will hinge on bipartisanship. While emphasizing themes that would resonate with his conservative base, he also sought to draw Americans together on goals involving national security and economic improvement.

“Tonight, I’m calling on Congress to produce a bill that generates at least $1.5 trillion for the new infrastructure investment that our country so desperately needs,” Trump said. “Every federal dollar should be leveraged by partnering with state and local governments and, where appropriate, tapping into private sector investment to permanently fix the infrastructure deficit.”

His other specific call was for speedier permits, to bring the approval process “down to no more than two years, and perhaps even one.”

Judging by comments from his administration, and a leaked draft document recently published by Axios, Trump’s goal is to hit that $1.5 trillion target (over 10 years), while spending just $200 billion or so in federal money, using it to reach the larger total by incentivizing the local and private investment.

Critics have voiced a host of concerns, including that speedier permitting as outlined by Trump would come at the cost of undercutting environmental safeguards, but also that the budget math isn’t adding up.

“Democrats agree with the president: America’s physical infrastructure is the backbone of our economy, and we have fallen behind,” Senate minority leader Chuck Schumer of New York said in a commentary published ahead of the address.

Presidents Eisenhower and Reagan were Republicans who understood “that direct investment of federal resources was the best way to maintain and build our nation’s infrastructure,” Senator Schumer said. “Only a plan with direct investments can properly address the scale of the challenge we face.”

His concern is shared by many outside experts, who say it’s quite possible that Trump’s coming budget plan will include no net increase for infrastructure (perhaps adding some new funds while cutting back on other existing programs).