New U.S. Administration Will Still Face the Same Transportation Challenges—And Solutions

If you take a close look at the political scene in Washington, DC, you might be surprised at how little is likely to change for surface transportation when President-elect Donald Trump and his new Cabinet assume office in January.

That may be the most counter-intuitive paragraph you’ve ever read on Tolling Points. But consider the elements of the transportation conversation we’re likely to engage in the new year.

The highway infrastructure funding deficit in the United States will still be massive and growing.

The country will still be led by an Administration that strongly supports infrastructure investment to boost economic efficiency and create large numbers of good-paying jobs.

Decision-makers in Congress will still be extremely hesitant about any increase in the federal gas tax.

Funding from the five-year, $305-billion FAST Act will still be in place.

Legislators will still likely insist on offsets or pay-fors for any additional funds proposed for an enhanced infrastructure program.

The most promising options for renewing the system and making it safer and more reliable will still be driven by technology and innovation, and dependent on closer collaboration across political parties, levels of government, and public and private forms of funding and financing.

And any new program proposals or initiatives will still be subject to rigorous review, analysis, and second-guessing—just as they’ve been for decades in Washington, DC, regardless of the party in power.

New Plan, Same Reaction

The Trump Administration’s infrastructure plan is summed up in a late October white paper by Wilbur Ross and Peter Navarro. The paper recognizes America’s infrastructure as “a linchpin of private sector growth”, stating that a $200 billion infrastructure investment produces $88 billion in wages and more than a percentage point of GDP growth.

The plan assumes that $167 billion in equity investment would be required to trigger $1 trillion in new infrastructure investment, and proposes an 82% tax credit to generate private sector interest.

But an analysis on the Vox news site found that assumption debatable. And over the weekend, Politico reported the plan was already running into familiar Washington headwinds.

“It was supposed to be a big, beautiful infrastructure bill,” the paper noted. “Trump's advisers are so far floating the same kinds of financing schemes that Congress has batted around for years with little success, including proposals to lure private investors or recap a revenue windfall through an overhaul of the tax code.

House Transportation & Infrastructure (T&I) Chairman Bill Shuster (R-PA) said legislators “don’t have the details.” Senate Commerce Chairman Bill Thune remarked that a trillion dollars is “a big number,” adding that “it's going to come down to figuring out just actually what's achievable.”

Senator Shelley Moore Capito (R-WV) said a major infrastructure initiative “could draw us together,” but “not if it’s not paid for.” Rep. Mark Meadows, a member of House T&I and of the conservative Freedom Caucus in the House of Representatives, added that “to just add it to the national debt, I don’t think President-elect Trump or members of the Republican Conference would support that.”

Finding the Money

All of which points to two familiar but crucial questions for the new Administration: where to find the funds, and where to look for successful business models for putting that money to work. On both points, the tolling industry can help.

It’s the tolling community that has worked with state departments of transportation, regional governments, and other public agencies to build, expand, or maintain critical highway infrastructure, using tolls to cover the up-front cost of the work.

It’s where many jurisdictions have had good success with public-private partnerships and other forms of cooperation that deliver powerful public benefits while mobilizing private investment to move farther, faster on infrastructure improvements and local job creation.

State governments have captured the benefits of tolling, and explored the intricacies of introducing mileage-based usage fees, to move highway programs farther, faster than they could go if they relied solely on government dollars.

The work is going on in red and blue states, small and large states. It all adds up to a mix of experience and living laboratory that can quickly add depth and hands-on insight to a campaign white paper.

‘Drawing Us Together’

It’s no secret that a long, grueling campaign and, for some, a surprising election result left America bruised and divided. But tolling agencies have always been about practical, workable solutions that, in Sen. Moore Capito’s words, “draw us together”.

It’s hard to think of a better platform for unity than a big, ambitious program that creates jobs, reduces highway congestion, and helps goods and people more quickly, safely, and reliably. The challenges facing highway transportation won’t disappear with the arrival of a new federal Administration. But the same solutions will also be available, and just as powerful as ever.  Let’s use them!

For more on IBTTA’s continuing conversation with the U.S. government, check out our Moving America Forward campaign.