The White House will present today the long-awaited infrastructure plan, following a key pre-election promise of the President Donald Trump. The proposal will include 200 billion USD of federal infrastructure spending to be deployed within the next decade. The funds will come from budget savings.
The debate in Congress on the plan of Trump will be long and difficult.
The biggest item will be for the states and municipalities that will have to find their own co-financing. The federal cost for each project will be limited to 20% of the total, meaning local authorities will have to find the remaining 80%.
The plan should stimulate investment of 1.5 to 1.7 trillion USD in new infrastructure, according to the White House.
The proposal also includes 50 billion USD for infrastructure projects in rural areas. The funds will be distributed to the states in the form of grants. Another 20 billion USD will be earmarked to finance technology projects that were previously estimated to be too risky but have the potential to bring about a major change if they are successful.
Another 20 billion USD goes to expand the current credit program for private-public partnerships.
The second important part of the plan includes reforms to the infrastructure related legislative framework. The goal is to reduce the waiting time for permits. Among the most affected rules will be those for environmental protection.
Over the weekend, the White House boasted that many of the objectives in the Trump plan already come under support from both major parties – although there are differences as to how exactly they should be achieved.