The road to a new bipartisan national infrastructure plan is filled with cautious optimism

Make no mistake, the White House’s announcement yesterday that a bipartisan framework has been established for a $1.2 trillion infrastructure authorization is a big deal. But, to be sure, in order for it to become official much more needs to happen—and it is not likely to be an easy path there, as we all know.

But this is not meant to be a downer column, not at all. The fact that things have progressed to this point is a good sign. Again, though, more needs to happen and hopefully it will.

While there are not a ton of details on the plan just yet, The New York Times reported that this deal will focus on traditional infrastructure projects, including roads, bridges, tunnels, rail, and broadband, while leaving out parts of the more widely encompassing package, to the tune of around $2.3 trillion, proposed by the White House earlier this year. The report said that this new bipartisan plan would include some existing infrastructure programs and also allocate $579 billion in new money over eight years to “patch cracking highways, rebuild crumbling infrastructure, speed rail traffic, and more equitably spread high-speed internet access.”

Other notable aspects of the plan cited in the report include: investing billions into waterways and coastlines washing away due to rising sea levels; and $7.5 billion into 500,000 electric vehicle charging stations.

Not surprisingly, feedback related to this development has been positive but also cautious.

“As the President has said—we’ve spent too much time competing with one another, and not nearly enough competing with the rest of the world to win the 21st century,” said U.S. Secretary of Commerce Gina Raimondo in a statement. “We have a moment to show the world that democracies can succeed in tackling our biggest challenges and that America can lead by example. Today’s Bipartisan Infrastructure Framework is our opportunity to do that. We are demonstrating that you can work across the aisle to deliver a big, bold plan with bipartisan support.”

Matt Shay, president and CEO of the National Retail Federation also issued a positive statement, with a supply chain slant.

“Now more than ever, the U.S. needs significant investment to ensure we remain competitive on a global basis,” said Shay. “The retail industry relies on our nation’s transportation network to move billions of dollars’ worth of merchandise every day to warehouses, distribution centers and stores, and ultimately to consumers’ front doors. The ongoing supply chain disruptions that retailers and others are continuing to face highlight the need for investment and reform. As witnessed by the ongoing supply chain challenges facing retailers and others, a major infrastructure package needs to focus on improving the overall system, and prioritize safety, efficiency, resiliency and building for tomorrow’s needs. We need to ensure that the legislation includes sustainable funding mechanisms without overburdening the businesses that are leading our economy out of the pandemic.”

OK, so there is a lot of optimism about this development, no question. But, as always, the issue of funding and other next steps remaining front and center as always. That was made clear in a statement issued by former Pennsylvania Governor Ed Rendell, who now serves as a Co-Chair for Building America’s Future.

“The 10 Senators are to be praised for their efforts to forge a compromise infrastructure proposal but the proposed pay fors are disingenuous,” he said. “Public private partnerships and the establishment of an Infrastructure Bank are two important financing tools to leverage private investment with federal dollars and Building America’s Future has consistently been a champion of both. However, they are no substitute for federal funding.  It is difficult to understand how these financing tools can be counted as realistic ways to pay for an infrastructure package.”

And Randy Mullet, principal of Mullett Strategies, told LM that he was both surprised and pleased the framework of a deal was worked out.  

“I am hopeful they are able to sell enough other legislators to move it forward,” he said. “Still a long way to go as they work through details of how to pay for it. If it passes the Senate, they will likely send it to the House for their consideration rather than taking up the bill currently moving through the House vote.  So….long story short….it’s still got a ways to go.”

Mullett pulls no punches here, nor does James H. Burnley, a partner at Washington, D.C.-based law firm Venable LLP and former Secretary of Transportation under the late President Ronald Reagan.

“This is clearly a breakthrough, but there are still quite a few hurdles before it can become law,” Burnley told LM. “That said, I am optimistic that something close to this will become law this year.”

The fact that things have progressed to this point, is encouraging, but as Mullett and Burnley—two gentlemen that have forgotten more about infrastructure than anyone else even knows—indicated, there is a long way to go. That said, it looks like we are on a road of cautious optimism, in terms of getting to a new bill, which is better than being on no road at all.