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Title: Where Is Trump's Infrastructure Plan?
Source: Vice
URL Source: https://www.vice.com/en_us/article/ ... -is-trumps-infrastructure-plan
Published: Dec 8, 2017
Author: Mark Hay
Post Date: 2017-12-08 17:51:53 by Willie Green
Keywords: None
Views: 1923
Comments: 29

He promised one within 100 days
of taking office. It's now day 322.

Infrastructure was essential to Donald Trump’s 2016 campaign. His enthusiasm for a $1 trillion building plan to overhaul America’s roads, bridges, and other vital facilities set him apart from his spending-shy Republican opponents, and the idea was also popular with voters. Last November, just after his electoral victory, he promised to have an infrastructure bill before Congress in his first 100 days in office. In a February speech to Congress, he reaffirmed his commitment to fast action on infrastructure.

But 100 days in, Trump had yet to release even a rough draft of his infrastructure plan. In May, the White House slipped a vague six-page sketch of a plan into its 2018 budget proposal, with little fanfare, and promised there'd be a full plan ready to go sometime in the fall. There’s been little visible action since, even as that deadline has come and gone. Just this Thursday, the White House promised that it would release a 70-page plan—still not a full bill, but a template Congress could use to create legislation—before Trump’s first State of the Union speech on January 30, 2018.

By now, it shouldn’t surprise anyone that Trump would hype up plans that don’t exist or propose timelines he can’t keep. “The administration has eliminated our ability to give them the benefit of the doubt” on timing, said Adie Tomer, an infrastructure expert at the Brookings Institute, by using “really bombastic language” but failing to act on it. Trump has taken some action on most of his other key priorities and 100-day promises, even if that action has been largely delayed, dysfunctional, or doomed. So where’s his infrastructure plan?

The common narrative is that infrastructure just got lost in the scrum of the failed effort to kill the Affordable Care Act and the ongoing slog to pass tax cuts. “As often happens, this long-term problem that requires a huge allocation of funding to make a difference takes a back seat to more politically immediate priorities,” said infrastructure policy wonk Joel Moser.

That, the narrative goes, was a hugely consequential decision. “Had they started with infrastructure,” said Marcia Hale of the bipartisan infrastructure advocacy group Building America’s Future, “we might be in a very different place with our politics.” Theoretically at least, it would have been a much easier legislative lift that might have drawn in Democratic support, proving that Trump could cut deals on Capitol Hill and get things done.

But, said Jacob Leibenluft of the left-leaning Center on Budget and Policy Priorities, “to say that this is an issue of being distracted by health and tax reform lets them off the hook a bit.”

It’s unlikely the administration had enough of a solid plan to move on infrastructure earlier this year. Trump tapped a couple of Manhattan real estate developers in January to form a council to help his team figure out where to direct infrastructure spending. But he didn’t actually form the council until mid-July, and dissolved it a month later during his post-Charlottesville meltdown. Steve Bannon, the person in the White House who was most publicly supportive of infrastructure spending, was fired in August.

The six-page sketch his team released in May focused on using $200 billion, from an unspecified source, to spur the development of $800 billion in private-public partnerships (PPPs), although it gave little detail on how that would be done. But in September, Trump bashed PPPs as impractical for funding many types of infrastructure projects on the same day that the White House’s key infrastructure guy, D.J. Gribbin, was touting them as the backbone of the administration’s plan at another event. Observers were not sure if Trump’s comments reflected a policy change or were just an offhand and unofficial rant. But it added to a months-long aura of uncertainty.

“The fact that there’s no indication, almost a year into this presidency, that there’s been even a serious attempt at an infrastructure plan, I think, is telling,” said Leibenluft.



Republican leaders in Congress also made it clear at the top of 2017 that infrastructure wasn’t one of their priorities. Congress fields regular infrastructure bills, pointed out Tomer, and the GOP is never hot on the large spending they entail. So there was no incentive for the Republican-led legislature to push more infrastructure unless the administration was pushing them to do so. Even that pressure could only go so far. But if the Trump administration started the year with no clear ideas, said Tomer: “It’s like someone being at a dinner party and saying, ‘So what does everyone think about this thing? But I’m not going to tell you what I think.’ So it got dismissed.”

In recent weeks, the White House has tried to project more certainty on infrastructure, teasing elements of its 70-page plan. As of this week, officials have explained it focuses on using $200 billion to incentivize states and localities to come up with new funding sources, including deals with private entities. The $200 billion will also be used to provide block grants for projects in rural areas that might have trouble generating revenue, federal lending, and funding for innovative projects. Ideally this would lead to a total of $1 billion in infrastructure spending. This plan is more fleshed out than May’s plan, and quite different. “The administration’s done a lot more work on this than they’re getting credit for,” argued Hale. “They know what they want now.”

But few outside of the administration know the full details of this plan, leaving the public and many legislators with a slew of questions: How will those incentives work? What will the balance between these elements be? And where will that $200 billion in baseline federal funding come from? “Until you see it,” noted Tomer, “it’s easy to make changes. So until I see it, I really don’t know what you’re going to propose.”

Simultaneously, it’s become clear how little effort the administration has made to harmonize its other priorities with any potential infrastructure plan. Trump’s proposed budget would have cut, by some estimates, $55 billion more in funding for infrastructure than the $200 billion boost he’s proposed. Congress largely ignored that budget plan, but the disconnect was a bad sign.

Trump could have used his tax bill to carve out infrastructure funding; he backed a longstanding plan to use a tax on repatriated corporate funds, now idling abroad, for it as late as October. This would have smoothed over conservative concerns about spending and could have been a selling point for the tax bill, noted Leibenluft. But the White House apparently didn’t even try to marry the two bills. Instead the House tax bill contains a provision that would start taxing a type of bond that’s vital to many private-public partnerships. Both chambers’ bills, by reducing or eliminating state and local tax deductions, could lead states to decrease their taxes, shrinking a key source of revenue the current infrastructure plan wants to see increase.

“You want to do infrastructure and you want states and localities to take on a larger amount of responsibility,” said Hale. “But then you’re taking some of the tools away from them that they use to be able to do what they do presently, let alone what is going to be asked of them.”

The administration may insist it will start working on infrastructure as soon as it’s done with taxes, but don’t hold your breath. Trump has also said he wants to work on healthcare and welfare reform early next year, and Congress will likely be dealing with a funding battle in January. “There are probably 1 million things that could dislodge any proposed legislative vehicle,” or scuttle any timeline, said Hale.

Even if the White House does release a full plan in January and puts real pressure on Congress to act on it, there’s no reason to think a “switch is going to flip,” as Leibenluft put it, that would result in serious legislative action. After passing disaster relief bills and a tax plan that add massively to the national deficit, and with no clear source of funding in sight, Republicans will have even less incentive to move on infrastructure than they did in early 2017.

Trump could lean on the Democrats for a bipartisan bill. But there’s not much in his sketches, said Leibenluft, that would appeal to them “They haven’t put out ideas that are going to appeal to Republicans, who might resist putting in the resources necessary,” he told me. “And they’ve resisted proposals by Democrats.”

Even if, somehow, a bipartisan congressional coalition does form (and it’s unclear why one would), there’s no reason to think it’d pick up on whatever Trump’s final plan is. This means whatever Trump has in the works may be moot.

So will we ever get a Trump infrastructure plan? Perhaps in January. Or not. But even if we do, infrastructure is hardly as easy and unifying a cause as people made it out to be in the aftermath of Trump’s shocking win. At this point, says Leibenluft, it’s unclear if it “will ever become anything but a talking point.”

“My personal feeling,” said Tomer, “is that the clock runs out on this Congress to do something.”


Poster Comment:

And how's that Border Wall coming along?

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Begin Trace Mode for Comment # 19.

#9. To: Willie Green (#0)

Federal infrastructure spending is a Democrat program. They love to spread those federal billions around to their friends to get votes.

F**k 'em. They won't work with Trump? Then no money.

misterwhite  posted on  2017-12-09   9:38:56 ET  Reply   Untrace   Trace   Private Reply  


#12. To: misterwhite (#9)

There is nothing wrong with bridges and roads. It is in the countries interest to keep them up.

A K A Stone  posted on  2017-12-09   10:51:32 ET  Reply   Untrace   Trace   Private Reply  


#13. To: A K A Stone (#12)

There is nothing wrong with bridges and roads. It is in the countries interest to keep them up.

Obama was given $830 billion by the American Recovery and Reinvestment Act of 2009 (aka the Stimulus Bill). After $830 billion the bridges and roads still aren't fixed? Where'd the money go?

Exactly. No one knows. The Democrats pissed it away. And they can't wait to do it again.

misterwhite  posted on  2017-12-09   11:03:34 ET  Reply   Untrace   Trace   Private Reply  


#16. To: misterwhite (#13)

After $830 billion the bridges and roads still aren't fixed? Where'd the money go?

You're misrepresenting The ARRA -

Consider :

President Barack Obama outlined the economic stimulus package during his 2008 campaign. Congress approved the $787 billion American Recovery and Reinvestment Act in February 2009.

The economic stimulus package ended the Great Recession by spurring consumer spending. It's goal was to save between 900,000 to 2.3 million jobs. Most important, it instilled the confidence needed to boost economic growth.

It also aimed to restore trust in the finance industry by limiting bonuses for senior executives in companies that received TARP funds. (Sources: "Letter to Senator Grassley," Congressional Budget Office, March 2, 2009. Recovery.gov)

How It Worked ARRA had three spending categories. It cut taxes by $288 billion. It spent $224 billion in extended unemployment benefits, education and health care. It created jobs by allocating $275 billion in federal contracts, grants, and loans.

Congress designed the Act to spend $720 billion, or 91.5 percent, in its first three fiscal years. It allocated $185 billion in FY 2009, $400 billion in FY 2010 and $135 billion in FY 2011.

The Obama administration did better than planned. By the end of FY 2009, it spent $241.9 billion. Of that, it spent $92.8 billion in tax relief, $86.5 billion in unemployment and other benefits and $62.6 billion in job creation grants.

In the FY 2012 budget, the Congress allocated additional funding to raise the total to $840 billion. By December 31, 2013, the administration spent $816.3 billion. Of that, it spent $290.7 billion in tax relief, $264.4 billion in benefits, and $261.2 billion in contracts, grants and loans. (Source: Recovery.gov.)

Was It a Success? Many critics pointed out that Obama's stimulus package did not succeed because the economy contracted 2.8 percent in 2009. The Congressional Budget Office projected ARRA would stimulate GDP growth by 1.4 percent to 3.8 percent that year. That meant growth in gross domestic product would be 1.4 percent to 3.8 percent better than if Congress did nothing.

In fact, the CBO projected the economy would contract 3 percent for 2009. That's because it had already contracted 5.4 percent the first quarter, and 0.5 percent in the second. The Dow had fallen to 6,594.44 on March 5, 2009. By Q4 2009, GDP was up 3.9 percent, and the Dow had risen to 10,428. By 2010, the economy expanded 2.5 percent.

The economic stimulus bill was supposed to save 900,000-2.3 million jobs. As of October 30, 2009, it saved 640,329 jobs. (This is the most recent report. The Recovery Board stopped estimating job creation after that.)

Not all of that success was thanks to the Stimulus Package. Expansive monetary policy and active emerging markets boosted global growth. But by March 2009, monetary policy had done all it could. It was evident more fiscal policy was needed. No doubt, the economic stimulus package inspired the confidence needed to turn the economy around.

Once in office, Obama realized he needed to increase the fiscal stimulus from the $190 billion plan he proposed in his campaign. Some components of his campaign plan, such as enacting a foreclosure moratorium, had already been implemented by Fannie Mae. Others, such as eliminating taxes on seniors making up to $50,000, were still part of Obama's economic agenda elsewhere.

Obama's biggest challenge was to create enough of a stimulus to soften the recession, but not big enough to raise further doubts about the ballooning U.S. debt. Unfortunately, the plan was blamed for doing both -- failing to reduce unemployment below 9 percent, and adding to the debt. Even so, the stimulus plan was not condemned as much as health care reform, Medicare, and Medicaid for the debt.

How Well Did Each of the Three Components Work? Obama's tax rebates were supposed to encourage consumer spending, but many experts doubted it.

Why? The rebates showed up as less tax withholding. Unlike the Bush tax cuts, workers did not receive checks. As a result, most people weren't aware they got a tax rebate.

The Stimulus for Small Business helped create jobs, increased lending from the SBA and community banks and reduced capital gains taxes for small business investors. The aid helped, but many states were so underwater that their losses outweighed the federal assistance.

The public works construction was probably the most well-publicized. Signs were posted wherever stimulus money was used to construct roads or public buildings. It was estimated to retain or add 3 million jobs, many of which were sorely needed in the construction industry.

https://www.thebalance.com/what-was-obama-s-stimulus-package-3305625

So it wasn't $830B for roads and bridges as a promise that all would be made to be like brand-new...right?

Jameson  posted on  2017-12-09   11:22:52 ET  Reply   Untrace   Trace   Private Reply  


#17. To: Jameson (#16)

You're attributing every economic success between 2009 and 2017 to the stimulus -- job creation, consumer spending, economic growth. Obama's policies did nothing for 8 years. It was all due to the stimulus.

Well then, that makes what Trump is doing fantastic. We have all that (and more) and we haven't spent a dime on stimulus.

misterwhite  posted on  2017-12-09   11:40:24 ET  Reply   Untrace   Trace   Private Reply  


#18. To: misterwhite (#17)

You're attributing every economic success between 2009 and 2017 to the stimulus

I am doing no such thing - I am simply pointing out that asking "where did all the money go?" is a silly question.

Jameson  posted on  2017-12-09   11:56:10 ET  Reply   Untrace   Trace   Private Reply  


#19. To: Jameson (#18)

"Former President Barack Obama thanked himself in a speech at the Chicago climate summit Tuesday, saying his administration’s policies were the reason for America’s increased job creation and economic growth.
-- "http://dailycaller.com/2017/12/06/obama-takes-credit-for-economic- recovery

See? Obama hisself is saying HE was the reason for "America’s increased job creation and economic growth."

NOT the $830 billion stimulus. Meaning the $830 billion was pissed away.

misterwhite  posted on  2017-12-09   12:15:15 ET  Reply   Untrace   Trace   Private Reply  


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