President Donald Trump’s $1 trillion infrastructure spending plan was generally welcomed by the Democrats. It is one of the pro-growth plans that enabled the stock market to ride high in the past few weeks. His plan is likely to bring about millions of infrastructure jobs, boosting the job market as well. However, all these desirable changes are not going to happen any time soon.
Trump’s infrastructure program started out with numerous meetings with corporate leaders, but there are no firm decisions made on the prospect. Experts believe that the White House is understaffed to take up this massive infrastructure improvement. Trump has to overcome innumerable political hurdles to make this plan a reality. Furthermore, there are not sufficient funds with the government to pay for the huge project.
During the speech to congress, Trump said that the proposal for infrastructure rebuilding plan will commence soon, but no deadlines were given for this program. This means that the program could start only in 2018. The infrastructure spending plan was one of the iconic promises made by Trump during his presidential campaigns. The infrastructure team of the White House is assigned with the task of finding infrastructure projects throughout the country that could boost growth. They must also identify the sources that can be used to fund the program.
Trump has met with Elon Musk, William ford, Richard Trumka and various other officials to discuss the project funding options. Gary Cohn, National Economic Council Director of the White House met with 15 federal departments and agencies to instruct them to contribute to the infrastructure plan.
While the democrats were in favor of infrastructure spending, Trump has to face resistance from his own house. The Republicans are always wary of spending money on anything other than the military. Republicans feel that the new administration has to do a lot of work to get approval from Capitol Hill. The White House administration hopes that the new plan is a methodical process that can gain the support it needs and deserves.
The housing, energy and transportation agencies have participated in many meetings, but there is no deadline defined by the White House. Experts agree that the process could take a long time and the Trump’s team wants to take a comprehensive approach. While the $1 trillion project is exciting, funding the project is a headache that the new White House has to manage. The Republicans are not happy with the increasing federal debts. There is simply not sufficient money with the government to dedicate $1 trillion for infrastructure spending.
Trump has come up with a plan to encourage public-private partnership which will benefit the developers and provide value to the taxpayers’ money. It is unclear whether the entire infrastructure funding will follow the same plan or a different plan would be proposed according to the projects. To complicate the matters further, Trump has proposed that the infrastructure funding plan should be revenue-neutral and it should not add to the existing federal debt. Trump’s team is not interested in hurrying up the project as they want to take their time in making the right decisions.