Senate Democrats Introduce $1 Trillion Infrastructure Plan, Offer Trump Support If He Backs It

Zero Hedge ^ | 01/24/2017

[SeekAndFind]

Senate Democrats are set to unveil a $1 trillion infrastructure plan and offer President Donald Trump their support if he backs it, the NYT reports.

The plan includes $180 billion to rail and bus systems, $65 billion to ports, airports and waterways, $110 billion for water and sewer systems, $100  billion for energy infrastructure, and $20 billion for public and tribal lands.

Cited by the Times, Chuck Schumer said “our urban and rural communities have their own unique set of infrastructure priorities, and this proposal would provide funding to address those needed upgrades that go beyond the traditional road and bridge repair." The Senate Democrat leader adds that “We’re asking President Trump to work with us to make it a reality/"

As part of his agenda, Trump has promised to unveil an ambitious infrastructure package during the first 100 days of his presidency. “We will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation,” he vowed in his Inaugural Address.

One of Trump’s top advisers said Monday, however, that the president’s plan may run into roadblocks in the Republican-led Congress.

“He has to come up with a financing plan, and I think there’s going to be a little bit of a tug of war between the conservatives in the Republican party who are concerned about deficits and the president who’s concerned about jobs,” Richard LeFrak said on CNBC’s "Squawk Box." “I think he will prevail, ultimately, because he wants to put people to work.”

Republicans resisted President Barack Obama’s push for an infrastructure “surge” for eight years, arguing that the federal government couldn’t afford it and that state and local governments should shoulder more responsibility for improvements. However, now that Trump "has taken up the Democratic cause", they may find it more problematic.

Meanwhile, as the NYT adds, the first major test of Mr. Trump and his sway over congressional Republicans will come Tuesday morning at 10 a.m. That is when the Congressional Budget Office, the nonpartisan Capitol Hill scorekeeper, will update its budget outlook. The office is expected to say that the federal deficit, after years of decline, will start swelling again this year and will pick up steam over the next decade if policies aren’t changed to curb the growth of health care programs and of Social Security in an aging populace.

The annual report could be a major brake on Mr. Trump’s agenda, which includes large increases in spending on infrastructure and defense, as well as deep tax cuts. Those plans could collide with Republican promises to balance the budget — if Republicans care about such niceties in the Trump era.

As we noted previously, according to a Barclays analysis, infrastructure spending in the US will take a long time to ramp up. The bank laid out the top 10 projects currently in planning or construction, and just these along will take as much as 1-2 years before any practical benefits "trickle down" to the long-ignored US steel sector which Trump has vowed to revitalize. This is what Barclays said last week:

Given the unknowns about Trump’s infrastructure plan – lack of clarity on total spend, past ineffectiveness of stimulus efforts, timing of implementation, pushback from Congress – we currently model no additional metals demand from supplemental infrastructure investment during 2017-18 into our baseline forecast. As greater visibility becomes available, we will adjust our consumption forecasts to take into account the latest spending plans. The key issue we think is facing the metals sector is that even if infrastructure spending is approved at the headline level ($1trn over 10 years, or $100bn a year) and implementation is effective, the project schedule does not allow for an immediate effect on metals consumption, particularly over the next two to three years.

A list of the ten largest US infra projects is shown below:

[Lord Castlereagh]

For later

[apillar]

Trump should respond that he will back it on one condition, “That all contracts are non-union.” and watch how fast the democrats pull their support. (”Infrastructure” Spending is a tried and true democrat method of funneling money to Unions, who then funnel the money back into democrat campaign coffers.)

[originalbuckeye]

I want Trump to say ‘sorry, I don’t trust you. You passed a $900 billion ‘stimulus’ package back in 2009 and the money all went to your pet projects and donors. It was supposed to go to infrastructure back then. I will NOT sign anything at all, that does not have a plan to fund it. Period.’ The Dems want to get in front of what Trump has already suggested, so they can take credit. They are still the pigs we always knew they were.

[Resettozero]

Schumer-backed plan?

Let’s read it before we pass it.

[DUMBGRUNT]

“Will you walk into my parlour?” said the Spider to the Fly,
‘Tis the prettiest little parlour that ever you did spy;
The way into my parlour is up a winding stair,
And I’ve a many curious things to show when you are there.”

“Oh no, no,” said the little Fly, “to ask me is in vain,
For who goes up your winding stair
-can ne’er come down again.”

[ronnie raygun]

Needs to look deep into this, as we all know there are hidden moneys that have nothing to do with the bill

[rod1]

Trump should tell them...”Pass my cabinet nominees and I will then look at it.”

[momincombatboots]

He has his own trillions dollar “infrastructure” plan. Wonder which plan was created w Japan for schools and airports?

[thoughtomator]

They have to know it’s DOA... why would they waste their time?

[rb22982]

bingo

[RetiredArmy]

Right. Remember the LAST bill they passed, and were to pass it so they got the opportunity to read it, called it obammycare. GOD!!!! Ain’t it great to wake up every morning and know that slime ball is not in our White House!!!!! Oh, how fantastic!!!!

[9YearLurker]

I think I need to stop reading the news today. This stuff makes me sick.

[9YearLurker]

No, let’s just not pass it.

Here’s a case where I hope the GOP congress critters have some backbone.

[Sooth2222]

Why would Trump need a Democrat infrastructure plan???? Democrats are in the minority and are likely to remain so for the next 4 years, at least.

Trump can -- and likely will -- propose a boondoggle-free plan and the Republicans can pass it without any Democrat help. This is a fig leaf to try to cover the Democrats with unions when they oppose Trump's plan.

[EBH]

You are close on this analysis.

But, I would suggest the Dems. came forward with a plan first, put the gauntlet down that if he backs THEIR plan, he will get their support.

Reality, he shouldn’t back THEIR plan for all the reasons you stated.

BUT, it then gives them a way to scream, shout, and pontificate how the President lied about infrastructure plans. Watch...this little democrat dog and pony show is a political trap.

So what is the wisdom here? Back it or negotiate them out of their own plan? How much/far do you trust Trump? Trump is for America, united, together. Do we trust him enough to let him slice and dice the democrat plan?

[Mariner]

Take out the CA high speed train to nowhere that is really low speed...and the CA Delta Tunnels.

And the entire 180bil for Bus and Train projects.

Put all that money into roads and bridges.

[DouglasKC]

You can guarantee that it’s full of other crap besides that then you can guarantee that Trump will see right through it.

[alloysteel]

Democrat “infrastructure” plan - pay off the unions first and make all infrastructure rebuilding jobs “union scale”, even in “right to work” states.

For the support that Trump needs from Democrats, he need not court their vote in any way. The “trillion dollar” plan is simply more added to the national debt, already bloated beyond any reasonable level.

Just withhold funding to Democrat strongholds like sanctuary cities and other municipalities that have grandiose notions and no intention of complying with various austerity plans.

[exit82]

Dems had a 1 trillion dollar infrastructure plan in 2009.

It was called the stimulus package.

Joe Biden oversaw it.

Obama said nothing was shovel-ready—hahaha.

So the money went to Dem hacks and groups under the cover of infrastructure.

And the GOP kept the extra trillion in the continuing resolution ever since.