CAGTC throws its support behind White House infrastructure plan

With the White House having recently proposed an ambitious and wide ranging $2.2 trillion –plus infrastructure proposal, there is a lot to like and be encouraged about it, given that it is something supply chain stakeholders, state transit and transportation agencies, modal groups, and carriers have been in need of—and clamoring for—over the last several years.

From a supply chain perspective, the White House’s proposal, entitled the “American Jobs Plan” allocates funding for investments in roads, bridges, rail, ports, and airports, with a focus on spurring and supporting economic recovery, which President Biden has called a “once in a generation investment in America,” with this proposal geared towards investing into America’s future economic competitiveness on a global level.

The White House’s proposal has received strong support from the Washington, D.C.-based Coalition for America’s Gateways and Trade Corridors (CAGTC).

In a recent conversation I had with CAGTC Executive Director Elaine Nessle, she explained that, for years, there has been an ongoing conversation about insufficient levels of infrastructure funding across the entire transportation spectrum, specifically as it relates to freight-related infrastructure.

“The levels of funding proposed under the Biden-Harris plan would provide a substantial and unprecedented level of funding above the current baseline, she said. “It would very much provide that long-needed cash infusion and allow us, as infrastructure providers, to look out and think about future needs and types of projects and things that we can begin investing in that will support the economy and the country well into the future, rather than taking a backwards-facing look and patching up problem areas.”

In terms of where things go from here, Nessle explained that one significant component this proposal has in its favor is that there are very experienced lawmakers with decades of negotiating experience leading the charge on this, pointing to President Biden’s very long history of negotiating with Congress to get deals done, as well as Senator Chuck  Schumer (D-NY), the Senate Majority Leader, and Rep. Nancy Pelosi (D-CA), the House Majority Leader, both with decades of experience driving their legislative initiatives and managing a way to make them work.

And she added that the level of experience held by the people that want to see this proposal come to fruition will definitely work in the proposal’s favor, noting that it helps the proposal have a strong chance in moving forward.

What’s more, Nessle said that the level of Presidential leadership being seen on this initiative is one that has not been seen in a very long time, calling it a piece that has been missing and could even be viewed as the “magic bullet” in turning this proposal into a reality.

“This would be a historic achievement to have this level of funding go towards infrastructure, something we have been talking about for decades,” she said. “We have basically been living off of the vision of our grandparents and great grandparents for decades, and I think it is time for this generation to move the ball forward and be thinking about the generations to come and leave them with the same legacy we had.”

Addressing funding, with the White House looking to pay for a significant chunk of this proposal through an increase in the corporate tax rate from 21% to 28%, Nessle observed that this could be viewed as an opening salvo, of sorts, being presented.

“When you go to negotiate, you ask for maybe more than what you expect, or can make it work with in order to leave some wiggle room so everyone leaves the room happy,” she said.

What happens next with this proposal remains to be seen, with a Wall Street Journal report indicating that negotiations focused on determining the size and scope of this proposal to commence this week, with President Biden and Democratic leaders hoping to secure bipartisan support and common ground.

Will that happen? We will have to wait and see, as this is not entirely unchartered territory, in that there have been previous attempts to move the ball forward, with a close eye on the future that never passed the goal line. There have been myriad talks about how a renewed focus on infrastructure can be a boom for the future. By many accounts, when it comes to getting something done, you can argue that the clock is ticking, and the future is now.