The American economic engine is running at full throttle, with goods flowing like a tidal wave, yet it remains choked by aging infrastructure. Traffic congestion, deteriorating bridges, and congested ports—these aren't scenes from a dystopian film but the stark reality of America's lagging infrastructure development. President Trump has revived his ambitious $1.5 trillion infrastructure plan, but the critical question remains: where will the money come from?
Infrastructure Plan Relaunched Amid Funding Concerns
In his State of the Union address, President Trump urged Congress to pass an infrastructure investment bill generating at least $1.5 trillion. However, as before, the President provided no clear indication of how this massive sum would be funded. This suggests that states, local governments, and private enterprises would need to shoulder the financial burden rather than the federal government. The proposal has drawn immediate skepticism, with even Republican lawmakers expressing concern about the lack of concrete funding details.
Senator John Cornyn of Texas directly challenged the plan: "Where does the money come from? Tell me how we solve the funding problem, then I can tell you what we can accomplish." Senator Angus King of Maine echoed these concerns, stating, "The absence of funding sources worries me."
Transportation Sector Demands Substantial Investment
Despite funding concerns, the transportation industry has welcomed the infrastructure proposal. The Coalition for America's Gateways and Trade Corridors (CAGTC) emphasized the need for multimodal freight infrastructure investment. While President Trump predicted that the 2017 tax reform would spur economic growth, industry leaders warn these benefits may not materialize fully without adequate federal investment in freight infrastructure.
CAGTC Executive Director Leslie Blakey noted, "Federal investment in freight infrastructure has lagged behind population and economic growth for years. This financial burden shouldn't fall solely on states, localities, and private entities. We welcome the President's commitment to a federal investment plan."
Blakey stressed that current funding levels are insufficient, calling for "significant additional resources" and at least $2 billion annually for freight projects. America's freight system currently moves 55 million tons of goods daily, valued at over $49 billion—equivalent to 63 tons per person annually. With the U.S. population projected to grow by 70 million by 2045, infrastructure networks must expand capacity accordingly.
AECOM Chairman and CEO Michael Burke, who chairs the Business Roundtable's Infrastructure Committee, said he was "encouraged" by the infrastructure focus but added, "Now, the administration and Congress must act immediately to repair America's roads, bridges, and other critical commercial arteries. The cost of inaction is too high."
Industry Proposes User-Fee Funding Solutions
The American Trucking Associations (ATA) is pushing its "Build America Fund" proposal, calling it a "bold solution" to modernize deteriorating roads and bridges. ATA President Chris Spear stated, "Roads aren't a partisan issue—both Republicans and Democrats use them. Infrastructure modernization requires substantial, real revenue. America can't rebuild with financial gimmicks."
The ATA supports a 5-cent-per-gallon fuel tax increase phased in over four years, adjusted for inflation and fuel efficiency gains, with a 5% annual cap. This would generate an estimated $340 billion over a decade. Trucking executives, including FedEx founder Fred Smith, have long advocated raising federal fuel taxes to support the Highway Trust Fund, which has required $60 billion in federal transfers over 17 years.
Spear emphasized that while trucks account for 14% of road usage, the industry pays about 45% of Highway Trust Fund revenues through diesel taxes and truck-specific fees. "The trucking industry is putting our money where our mouth is," Spear said. "We're prepared to invest up to $112 billion more through the Build America Fund."
The ATA criticized alternative financing methods like tolling as inefficient, noting that up to 12% of toll revenue is lost to administrative costs compared to 99% efficiency for fuel tax revenue.
Innovative Financing and Technology Solutions Emerge
The U.S. Chamber of Commerce advocates a 5-cent fuel tax increase over five years, urging policymakers to view infrastructure as an opportunity for innovation rather than just a problem. Business leaders emphasize that modern infrastructure must incorporate automation, AI, and smart technologies.
Rich Funk, Procter & Gamble's Vice President of Product Supply, highlighted how infrastructure bottlenecks in Chicago, St. Louis, and California delay shipments and tie up capital. "We're investing in warehouse inventory waiting for inefficient transport instead of R&D," Funk told the Chamber.
AirMap's General Counsel Bill Goodwin noted that unlocking drone technology's potential requires digital infrastructure development. Following hurricanes Harvey and Irma, drones proved invaluable for search-and-rescue and damage assessment—demonstrating how infrastructure innovation can yield immediate benefits.
"There's a gap between what drones can do and what they're permitted to do," Goodwin said. "Digital infrastructure is the medium that will resolve concerns preventing widespread commercial adoption."