MLS 2017 Outlook: Infrastructure

Mintz - ML Strategies
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Following a presidential campaign that promised significant infrastructure investments, and just over 60 years after President Eisenhower launched the federal highway system in 1956, a national infrastructure commitment is rising near the top of issues to be addressed this year.

Executive Branch Agenda -

While President-elect Trump has not sketched out in detail his $1 trillion, 10-year infrastructure plan, he proposed a blueprint during the campaign that may receive congressional attention in 2017. Infrastructure affords potentially one of the few areas of agreement between congressional Democrats and the president-elect, but Mr. Trump’s plan relies primarily on tax incentives designed to leverage public-private partnerships, and Democratic legislators heavily favor direct federal spending. Congressional Democrats had hoped last Congress to form a national infrastructure bank, but their Republican colleagues vehemently opposed the bank. That being said, Congress did pass a 6-year highway bill and a new Water Resources Development Act last Congress, but a $1 trillion price tag for infrastructure investments will be difficult for many in Congress to approve. Senate Majority Leader Mitch McConnell (R-KY), for example, has repeatedly said that the 115th Congress will not approve another Recovery Act – which “only” cost $800 billion – and he is joined by many of his colleagues in opposing significant new federal infrastructure spending, especially in light of the country’s national debt.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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