Key details of President Trump’s potential $1 trillion infrastructure plan were published on the news website Axios on Monday.
Continue Reading Below
The draft, which a White House spokesperson would not comment on, outlines details on how a majority of the money could be spent.
Infrastructure Incentives Initiative: 50% Half of the funding will be used towards the Infrastructure Incentives Initiative which “encourages state, local and private investment in core infrastructure by providing incentives in the form of grants.” According to the draft, they h could cover up to 20% of the project’s cost.
Transformative Projects Program: 10% One tenth of the budget will be set aside for “exploratory and ground-breaking ideas that have more risk than standard infrastructure projects but offer a larger reward profile.” These sectors include: transportation, clean water, drinking water, energy, commercial space and telecommunications.
Rural Infrastructure Program: 25% One quarter of the money will be set aside to help rural economies, facilitate freight movement and improve access to reliable and affordable transportation. “States are incentivized to partner with local and private investment for completion and operation of projects under this program,” the document said. Eligible entities rural program include transportation, broadband, water and waste, power and electric and water supply.
Federal Credit Programs: 7.05% A little more than 7% will be used towards the Federal Credit Program, which is designed to increase the capacity of existing Federal lending programs like the Transportation Infrastructure Finance and Innovation Act and the Railroad Rehabilitation and Improvement Financing to help increase investments.
Federal Capital Financing Fund: 5% Five percent of the total appropriation will be set aside for the Federal Capital Financing Fund that creates a funding mechanism similar to a capital budget but “operates within the traditional rules used for the Federal budget by establishing a mandatory revolving fund to finance purchases of federally owned civilian real property.” The hope is that the revolving fund would transfer money to agencies to finance large-dollar real property purchases.
Continue Reading Below