Any Trump infrastructure program could favor ‘red’ states
President Donald Trump speaks with reporters in the Oval Office of the White House in Washington on Dec. 22, 2017. Credit: AP
When President Donald Trump delivers his State of the Union address Jan. 30, he will talk once again about fixing what he has repeatedly called America’s “crumbling roads and bridges.”
Undoubtedly many lawmakers will applaud, as they always do. But so far, nearly a year into Trump’s term, the road to a coherent rebuilding proposal that Congress would adopt remains foggy.
Over the weekend, Gary Cohn, the president’s chief economic adviser, cited details involving public-private partnerships, according to The Washington Post.
The administration would look for $200 billion in new federal spending to trigger $1 trillion in local, state and private spending, he said.
That would follow what the president initially talked about — a big role for public-private partnerships.
But there are conflicting signals on that front.
By several accounts, Trump had told members of Congress as early as September and as recently as Friday that he doesn’t favor such partnerships because they don’t always work.
Whatever his funding approach, the fiscal impact presents a massive challenge.
Billions in new spending would come on top of a deficit-expanding tax bill just enacted — raising the question of how they to make the numbers work on Capitol Hill.
Early on, the administration discussed letting local and state officials raise tolls and taxes.
There’s also the question of whether and how much the GOP-run Congress wants to do it.
Trump has issued hope Democrats will embrace his upcoming plan.
On New Year’s Eve, however, news broke that the Trump administration shut down an Obama-era deal to help fund a $13 billion rail tunnel project between New York and New Jersey.
The deal would have funded needed repairs to a key Amtrak tunnel.
Do the tunnel and other long-desired projects in the region such as subways and commuter railways become part of the discussion in Washington, D.C., this year?
It is tough to say how far they’d go. A significant part of the new tax changes shrinks local and state deductions, which tilts in favor of red states versus blue states.
Given the current power balance of Congress, red state infrastructure could be expected to get its share or more if sweeping legislation is approved.
The president is from New York, but most of his political base resides elsewhere. This won’t be missed if talks go forward.
Dan Janison is a member of the Newsday editorial board.
