The Register Citizen (Torrington, CT)
Kudlow: Don’t expect road, rail funds
WASHINGTON — White House Economic Adviser Larry Kudlow has a message for states and business leaders planning the nation’s biggest infrastructure projects: We’ll cut red tape for you, but don’t expect a check from us.
“Folks, we will give you the permits,” Kudlow said at the North American Infrastructure Leadership Forum in Washington, D.C., Tuesday. “If you can figure out how to pay for it, go on ahead and do it.”
In a speech, Kudlow emphasized that President Donald Trump is focused on deregulation and speeding up federal permitting to kick start rail, airport and other infrastructure projects. Trump campaigned in 2016 on a promise for a $1 trillion infrastructure plan, but he has yet to deliver on that goal.
In April, Senate Minority Leader Charles E. Schumer, DN.Y., House Speaker Nancy Pelosi, DCalif., met with Trump and announced an agreement to pursue a $2 trillion package to upgrade American highways, bridges, railroads and broadband. But since then, talks have fizzled as Democrats and Republicans disagree on how to pay for the package. Trump also derailed talks with Schumer and Pelosi on infrastructure in May when he objected to legislative oversight of his administration and walked out.
“I hate to say this, but don’t expect too much federal financial assistance,” Kudlow told infrastructure leaders Tuesday. “We’d like to say if we had it, we’d give it to you. But we don’t have it.”
“And I wouldn’t give it to you anyway,” Kudlow added, halfjoking. “But you can raise the money privately.”
Kudlow is a supplyside economist and former television pundit who owns a home in Redding, Conn.
His comments come as Connecticut has been paralyzed for nearly a year over how to fund transportation infrastructure investments. Gov. Ned Lamont, who unsuccessfully championed a broad tolling plan earlier in 2019, is now preparing to unveil a new transportation plan called CT 2030.
The plan will include a more limited tolling proposal — most likely placing tolls on bridges — and federal loans from the U.S. Department of Transportation’s Build America Bureau. The plan will focus on bringing roads and bridges to a state of good repair, while improving service on MetroNorth between New Haven and New York City.
The U.S. DOT did not respond for a request for comment about whether Kudlow’s comments promoting private investment in infrastructure reflect changes in their funding formulas, grant programs or policies.
A White House intent on curbing federal funds for infrastructure projects could have major ramifications for other transportation projects Connecticut commuters are waiting on.
The $12.7 billion Gateway Tunnel Project in New York and New Jersey is expected to ease train traffic through Northeast by relieving the largest rail bottleneck on the East Coast. The project would create a new rail tunnel under the Hudson River, rebuild the single existing tunnel and replace a 109yearold bridge over the Hackensack River, the Portal Bridge.
Modernizations of rail lines between New York and the District of Columbia will have a “cascading effect,” improving volume and service throughout the Northeast, Anderson said.
New York state has committed $1.75 billion to the project, along with $1.9 billion from New Jersey Transit, $1.9 billion from the Port Authority of New York and New Jersey Board of Commissioners and $1.5 billion from Amtrak.
The project is waiting for half of its funding to arrive from federal sources, but Trump’s 2020 budget did not include any funding for the project and a U.S. transportation official called it a “local responsibility.” Gateway was not listed among the top 10 priority projects for capital investment grants by the Federal Transit Authority.
Norm Anderson, CEO of CG/LA Infrastructure, an organization that advocates for doubling American infrastructure investment, said the White House stance on infrastructure investment reflects a new reality, as the federal gas tax and other sources of transportation funding dwindle.
“That model doesn’t work,” Anderson said, advocating for more private investment. “We have the largest percentage of infrastructure controlled by the public sector of any place in the world, including China.”
But Congress holds the power of the purse and sometimes finds bipartisan agreement on infrastructure issues. Lawmakers are in the early stages of sketching out their infrastructure investment vision.
In August, a Senate committee unanimously approved legislation with more money for highway reauthorization than ever before. The bill reauthorizes $287 billion to repair the nation’s road and bridges. Kudlow indicated Tuesday that Trump supports the legislation.
But the full Senate has yet to vote on the bill, and multiple other Senate committees have related legislation for highway investment to develop.
The House has yet to write its highway reauthorization legislation, even as a September 2020 deadline for current authorizations to expire ticks closer, said Justin Harclerode, communications director for Republicans on the House Committee on Transportation and Infrastructure.
In March, the Transportation and Infrastructure Committee passed a bill that provides for $650 million per year in additional funds to the Airport Improvement Program.
This increased investment will provide for airport, runway and taxiway infrastructure improvements at small and large airports across the country.