Trump Team Preps $1 Trillion Infrastructure Plan

President Trump plans to announce a $1 trillion infrastructure plan. The spending would occur over a 10-year period. Also, the administration is expected to announce his plan in the coming weeks. The news of Trump’s impending infrastructure announcement sent stocks upward on Tuesday. This shows an appetite on Wall Street for public spending projects.

Details of the Plan Released

The administration has already released some key details of President Trump’s plan. Most of the trillion dollars would go toward roadways, including highways and tunnels. A small portion of the funding would also go toward building 5G infrastructure. Along with renewing the country’s aging infrastructure, the administration intends the spending to generate jobs for the millions of Americans left out of work by the pandemic. Wall Street reacted positively to the proposal, as it does to virtually all public spending.

Both Republicans and Democrats would like to see an infrastructure bill in some form. However, passing Trump’s plan may prove to be an uphill battle.

Democrats Face a Difficult Choice

Trump pushes $2 trillion infrastructure package in next coronavirus bill, saying it must be ‘VERY BIG & BOLD’ https://t.co/WD1PC9lhXa

— Jay Titus (@jaytitus1) May 29, 2020

Democratic lawmakers face a difficult choice: work with Trump on infrastructure or wait until after November. Since Donald Trump’s election, infrastructure has been a rare area of shared opinion with Democrats. Trump and liberal lawmakers were in the process of negotiating a $2 trillion infrastructure package in April of last year. However, impeachment proceedings derailed any cooperation between the president and his Democratic opponents.

Despite the common goal of revamping aging US infrastructure, the Trump Administration has yet to see an infrastructure bill. Part of the reason for this is likely a Democratic reluctance to hand Trump an easy win on infrastructure, especially right before an election.

With the election just five months away, liberal lawmakers may opt for a “wait and see” approach. Trump could use a successful infrastructure bill to boost his reelection chances, while Democrats could hand Biden his first legislative victory if he wins in November. Ultimately, the Americans will benefit more from the prompt passage of an infrastructure passage, regardless of who sits in the White House during its signing.

Concerns from Republicans

President Trump may find a more willing audience in his political opponents than his Republican allies. While there is some support from both parties for infrastructure spending, many Republicans are voicing concern for America’s ballooning deficit, especially after the trillions that the US government has already spent on economic stimulus this year.

Mitch McConnell is sounding the alarm over the huge federal budget deficit, and says he and other Senate Republicans would prefer a much smaller infrastructure package. McConnell is leaning closer toward renewing the Highway Trust Fund to the tune of roughly $250 billion, a quarter the size of the Trump plan.

Other Republican lawmakers seem to share McConnell’s reservations. The Chairman of the Senate Finance Committee, Chuck Grassly, said lawmakers haven’t agreed to how $100 billion of McConnell’s proposal would be paid for. Asked about the trillion-dollar plan, Grassley said the final product “could be a lot less.” Republican Senator Pat Toomey said “I think that’s a very heavy lift.”

Senate Budget Committee Chairman Mike Enzi bemoaned the government’s heavy deficit spending. “Nothing we’re doing right now is fiscally responsible… I’m much more inclined to stick to solving the virus problem.”

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