Carolinas’ Construction Industry Reacts to Trump’s Infrastructure Plan
President Trump officially released a proposal for a $1.5 trillion infrastructure plan. The proposed plan includes $200 billion in funding from the federal government. Unlike recent infrastructure plans, half of the federal seed money is planned to go toward an incentive program to match funding and financing from state and local governments that invest in rebuilding projects. In addition, the program calls for block grants to states to be used for rural projects.
“We will build gleaming new roads, bridges, highways, railways, and waterways all across our land. And we will do it with American heart, and American hands, and American grit,” said President Donald J. Trump.
Read Trump’s Infrastructure Principles here.
The program sets aside over $20 billion for “transformative programs” for new projects, and another $20 billion is allocated to expand the use of loans and private activity bonds. The plan calls for a “capital financing fund” with $10 billion.
The plan is structured around four main goals:
• Generating $1.5 trillion for an infrastructure proposal
• Streamlining the permitting process down to two years
• Investing in rural infrastructure projects
• Advancing workforce training
Both ABC and AGC applauded President Trump on his $1.5 trillion infrastructure plan and they back his reported support of a 25 cent federal gas tax increase to help make the Highway Trust Fund solvent. The proposal seeks to assist a range of infrastructure types, such as highways, drinking-water and wastewater-treatment, river locks and dams, ports, energy, and broadband.
“We applaud the President and his administration in recognizing the importance of infrastructure investment and rolling out this innovative approach to addressing critical issues for our state and the nation,” said Dave Simpson, President and CEO of the Carolinas AGC. “We look forward to working with the President’s administration to review the details of the proposal and determine how the South Carolina DOT can accelerate its current priority programs such as rural road safety, interstate widenings and bridge projects as well as advancing additional infrastructure in our states.”
“ABC is pleased that the President’s plan mirrors many of the key principles ABC believes will deliver the most value to taxpayers,” said Mike Bellaman, Associated Builders and Contractors President and CEO. “For example, addressing regulatory burdens, such as streamlining the federal infrastructure permitting process, will reduce costs and increase the speed of project approval and completion. And expanding efforts to train the next generation of skilled workers will give more Americans the chance to take advantage of the jobs created by these infrastructure projects and help reduce the construction industry’s workforce shortage.”
Simpson said CAGC “will be monitoring developments here and we are optimistic that this infrastructure discussion is moving and we look forward to leadership in Washington from two of our association partners: AGC of America and ARTBA.”
“We are pleased that many of our legislative priorities are reflected in the President’s plan, said Chris Bullard, ABC Carolinas Director of Government Affairs. “ABC members look forward to working with our North Carolina and South Carolina delegations to ensure those principals are maintained in a final piece of legislation. In the coming months, we also hope to identify ways state and local authorities can help supplement the near $200B federal investment.”
Now that the plan outline has been announced, the next step is for Congress to introduce legislation. “The ball is in Congress’ court,” said Steve Hall, American Council of Engineering Companies’ vice president for government affairs. “Really, in a serious way, now it will be the beginning of the process.”
South Carolina
Christy Hall, South Carolina Department of Transportation Secretary applauded the plan, saying “it fits very well with our initiatives at the state level.”
A key project that could benefit from the proposal is building the South Carolina portion of Interstate 73. The Interstate would improve access to the Grand Strand beaches. “I think the odds for I-73 are looking better and better,” said Brad Dean, president and CEO of the Myrtle Beach Area Chamber of Commerce.
“President Trump endorsed I-73 when he was a candidate,” Dean said. “We met with him last fall as president and he again reminded us that he’s committed to building I-73.” Dean has been lobbying in Washington for its completion and said Trump’s “unconventional approach” gives him hope. “President Trump has repeatedly expressed support for Interstate 73, most certainly a transformative project, and it’s perfectly suited for his infrastructure plan.”
According to a 2016 South Carolina Department of Transportation and Federal Highway Administration study, Interstate 73 would generate more than $14 Million in revenue by 2030.
“While it appears there are still several moving targets to the Infrastructure Plan, CAGC is interested in finding out more about the workforce development aspect of the bill. The plan outlines funding for one million new apprentices,” said Leslie Clark, CAGC’s SC Government Relations and Divisions Director. “Workforce issues, especially the lack of skilled workers, has reached critical mass and CAGC is leaving no stone unturned as we try to tackle this problem.”
“Expanding efforts to educate our next generation of skilled workers, should give Carolinians the chance to take advantage of the jobs created by the near $200 billion investment while hopefully reducing the industry’s workforce shortage,” Bullard noted.
Clark added “In South Carolina, SCDOT Secretary Christy Hall says as many as 25,000 workers will be needed to successfully complete the 10-year road funding plan the SC General Assembly passed last year. So we’ll be keeping an eye on this area of President Trump’s Infrastructure Plan.”
“If you have heard SCDOT talk about their new Rural Road Safety plan, it is probably safe to say that Christy Hall and her team at SCDOT are very interested in the $50B for rural projects that is a part of the President’s plan,” Clark noted. “South Carolina leads the nation in the highest number of fatalities and SCDOT has implemented a program to address the roads in the state that are the ‘worst-of-the-worst,’ repairing 100 miles each year for the next 10 years.”
North Carolina
“It is encouraging that finally there appears to be a serious discussion at the national level about increasing the investment in infrastructure,” says Berry Jenkins, CAGC’s Director of NC Government Relations & Highway-Heavy Division. “With the backlog of needs in NC for both transportation and water and sewer projects, additional funding could provide a real stimulus to address those needs. These types of investments help us stimulate and manage our projected growth and we must get out ahead of those needs if we are to provide the quality of life and mobility our citizens expect.”
During the State of the Union address, President Trump addressed the importance of streamlining the permit process. Jenkins agrees. “Equally important is the streamlining of the regulatory process for environmental permits as that could allow a much faster addressing of the Infrastructure demands while still cost-effectively providing suitable environmental protections. We eagerly await the specifics of the Infrastructure investment plan because with issues such as this, ‘the devil is in the details,” and those details could provide assistance or obstacles – either of which could impact our ability to deliver the projects the public expects from this investment.”
“Although not perfect, the proposal addresses many of our members regulatory concerns,” said Bullard. “Members in the Carolinas can be excited about a simplified federal permitting process, which should reduce cost and speed up approval and completion times.”
Government Officials Respond
While the construction industry awaits details, state and local officials have also responded to the plan.
“We are looking for the details,” said Rep. Nelson Dollar, (R) N.C. House Appropriations Chair told WNCN. “Of course, the total package is $1.5 trillion dollars around the country. The President has expressed interest in being able to maximize the state participation, along with the federal participation.”
“I have long hoped that we could come together to put forth a common sense, bipartisan plan that addresses the needs of our nation’s crumbling infrastructure. Following the release of President Trump’s plan today, it’s become clear that’s not the case,” said Congresswoman Alma Adams (NC-12). “The President sent Congress a hyper-partisan and underfunded plan that shifts the burden onto states and cities and doesn’t provide enough funding to address the challenges facing our local communities. The plan offers $200 billion in federal funds yet, in North Carolina alone, we need more than $93 billion to restore our highways, and nationwide we need more than $2 trillion to update aging infrastructure. It’s time we get serious about passing a bipartisan solution to build 21st century infrastructure and give our economy the immediate and long term boost it needs.”
“There are too many regulatory barriers preventing essential infrastructure projects from moving forward, a prime example being I-73, said Congressman Tom Rice (SC-7). “The permitting process for I-73 began in 2004, and due to the inefficient environmental review process, we just received permits over the summer. I stand ready to work on legislation that will cut through this red tape and unleash economic prosperity through critical infrastructure investment. Delivering on the Administration’s legislative framework will help build a stronger America, and I intend to take this opportunity to invest in a stronger South Carolina.”
AGC has prepared one-page summaries of the administration’s infrastructure funding, environmental streamlining and workforce development elements of the proposal. With action on an infrastructure bill moving to Congress, AGC believes it is critical that the construction industry lets Congress know that the time for infrastructure investment is now.
GroundBreak Carolinas will offer continuing coverage of the Infrastructure Plan and how it impacts North Carolina and South Carolina.
