President Proposes $50 Billion for Infrastructure
President Obama has resurrected his proposal to invest $50 billion in infrastructure and wants it included in the fiscal cliff deal. Republicans were immediately critical of the proposal. Details were not released, but it is assumed that the proposal is similar to those previously announced by President Obama in 2010 and 2011. Those proposals have not passed the Democratic Senate or the Republican House. It’s debatable how hard the White House has pushed Congress to pass the proposal.
Several times in recent years the President has promoted paying for the program by using some of the savings from ending the wars in Iraq and Afghanistan. Members of both parties have opposed that mechanism.
On Friday President Obama, speaking at a manufacturing facility in Pennsylvania, repeated his call for investing in fixing and maintaining the nation’s infrastructure (White House transcript).
Back in September 2011, the President included a $50 billion infrastructure plan in his American Jobs Act proposal. Here’s what he said:
“Everyone here knows that we have badly decaying roads and bridges all over this country. Our highways are clogged with traffic. Our skies are the most congested in the world.
"This is inexcusable. Building a world-class transportation system is part of what made us an economic superpower. And now we’re going to sit back and watch China build newer airports and faster railroads? At a time when millions of unemployed construction workers could build them right here in America?
There are private construction companies all across America just waiting to get to work. There’s a bridge that needs repair between Ohio and Kentucky that’s on one of the busiest trucking routes in North America. A public transit project in Houston that will help clear up one of the worst areas of traffic in the country.
And we’ll set up an independent fund to attract private dollars and issue loans based on two criteria: how badly a construction project is needed and how much good it would do for the economy .
This idea came from a bill written by a Texas Republican and a Massachusetts Democrat. The idea for a big boost in construction is supported by America’s largest business organization and America’s largest labor organization. It’s the kind of proposal that’s been supported in the past by Democrats and Republicans alike. You should pass it right away.”
And here is a description of the $50 billion proposal from the White House:
“The President’s plan includes $50 billion in immediate investments for highways, transit, rail and aviation, helping to modernize an infrastructure that now receives a grade of “D” from the American Society of Civil Engineers and putting hundreds of thousands of construction workers back on the job. The President’s plan includes investments to improve our airports, support NextGen Air Traffic Modernization efforts, and resources for the TIGER and TIFIA programs, which target competitive dollars to innovative multi-modal infrastructure programs. It will also take special steps to enhance infrastructure-related job training opportunities for individuals from underrepresented groups and ensure that small businesses can compete for infrastructure contracts. The President will work administratively to speed infrastructure investment through a recently issued Presidential Memorandum developed with his Jobs Council directing departments and agencies to identify high impact, job-creating infrastructure projects that can be expedited in a transparent manner through outstanding review and permitting processes. The call for greater infrastructure investment has been joined by leaders from AFL-CIO President Richard Trumka to U.S. Chamber of Commerce President Thomas Donohue.”