Bipartisan Caucus Takes Problem-Solving Approach to Federal Infrastructure Funding

It’s automatically good news in Washington, DC when 48 Members of Congress come together in a bipartisan forum called the Problem Solvers Caucus.

And it was great news last week when that caucus turned its attention to infrastructure.

“The report, released by the caucus’s Infrastructure Working Group, proposes solutions on how to modernize U.S. infrastructure while maintaining environmental protections and bolstering the national security,” The Hill reports. The group's report was issued as “detailed legislative principles” for the Trump administration’s forthcoming infrastructure plan that perhaps will be released sometime after the State of the Union address.

The caucus’ timing couldn’t be better—while other sources of leadership gradually coalesce in response to an entrenched infrastructure funding crisis, an action agenda with support from both sides of the Congressional aisle is already in circulation.

“We’ve paved a bipartisan path to get to ‘yes’, and look forward to working with key leaders in Congress to find the right mix of policies to create legislation that can, and should, be enacted into law as soon as possible,” said Caucus Co-Chair Tom Reed (R-NY).

Pathways to a Solution

The report puts a Congressional imprimatur on many of the sensible action items that have been on the table for years.

Across all infrastructure categories, the report recommends continued tax-exempt status for municipal and private activity bonds, incentives for states to evaluate projects’ suitability for Public-Private Partnerships (P3s), easier program access for rural communities, a strong Buy America component for federally-funded infrastructure projects, full implementation of key MAP-21 and FAST Act provisions, and life-cycle cost assessments for all projects over $20 million in value.

It also recognizes the Transportation Infrastructure Finance and Innovation Act (TIFIA) and its counterpart for water infrastructure for providing “flexible, low-cost loans and loan guarantees to projects of regional and national significance,” leveraging up to $40 in investment for every dollar of federal loan assistance.

“Congress must reconsider how it funds, finances, and treats infrastructure investments,” the Problem Solvers write.

“We must fulfill our duty to provide stable, long-term funding for infrastructure that supports America’s national security and our nearly $20-trillion economy, while also encouraging innovative financing and provide increased accountability to taxpayers so they know that every single dollar is invested wisely,” the report adds. “Congress must also cut red tape and stop gridlock when it prevents projects from moving forward in as expedient a manner as possible, while ensuring environmental and safety protections.”

Sustaining the Highway Trust Fund

For surface transportation, the Problem Solvers offer a menu of options for delivering sustainable, long-term funding to the Highway Trust Fund. Their options include a gas tax indexed to rising costs or to increased fuel efficiency, a modernized federal gasoline user fee, a modest annual registration fee for hybrid and electric vehicles, a value-based user fee for freight, and additional pilot projects to support a transition to a mileage-based usage fee.

“Congress has allowed a vast backlog of deferred maintenance to grow in our existing infrastructure while failing to keep up with growing demand,” the report states. “While state and local governments provide about 75% of funding for all transportation infrastructure projects, federal participation plays a vital role in providing the revenue and additional financing tools that all states, cities, and rural areas count on to maintain world-class infrastructure and transportation services.”

The year is just beginning, and there are many twists and turns ahead before a federal infrastructure plan takes final shape. But by acknowledging the problem, laying out a menu of possible policy responses, and shining a light on Congress as an essential part of the solution, the Problem Solvers Caucus has moved the discussion forward. It’s the kind of mature, level-headed thinking that will be needed to build long-term infrastructure and keep the country’s surface transportation system moving forward. Let’s hope Congress can put party politics aside and invest in America.

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