Trump Sketches $1.5 Trillion Infrastructure Spending Plan

February 13, 2018 at 12:41 AM

The White House has unveiled an improbable $1.5 trillion infrastructure renewal program that analysts say has little chance of seeing Congressional action anytime soon.

The federal government would contribute $200 billion (13%) in seed money for the plan to fix roads, bridges, shipping ports and other transportation systems, primarily by cutting budgets for other federal activities.

The remaining $1.3 trillion would be bankrolled directly by cities and states, through alliances with the private sector and by selling off assets such as airports. Exactly how and where the funds would be applied isn’t clear.

The proposal is part of a $4.4 trillion budget that would hike spending on the military and provide initial funding for a wall between the U.S. and Mexico. It also reiterates last year’s recommendation that more than $4 trillion in spending be cut for social programs such as disability benefits, food stamps, welfare and student loans.

The U.S. Office of Management and Budget previously estimated it could take nearly a decade to balance the budget proposed last year by the White House. OMB says this year’s plan would roughly double the deficit, mainly because of the impact of December’s $1.5 trillion tax cut, and push the prospects of a balanced budget out beyond 10 years.