President Donald Trump has once again brought his ambitious $1.5 trillion infrastructure plan into the spotlight, rekindling hopes for revitalizing America's aging infrastructure. However, as in previous discussions, the question of funding remains the biggest obstacle looming over this grand proposal. With infrastructure needs becoming increasingly urgent, the focus has turned to how the financial challenges will be addressed.
Infrastructure Plan Revived, But Funding Questions Persist
In his State of the Union address, Trump called on Congress to pass legislation that would generate at least $1.5 trillion for "new infrastructure investment we need." However, the plan appears to rely heavily on financially strained state and local governments, along with private sector investment, rather than significant federal funding. This approach has drawn immediate skepticism, including from within Republican ranks.
Senator John Cornyn (R-TX), a member of Senate leadership, told the Wall Street Journal after Trump's speech: "The question is how do you propose to pay for it? Tell me how we're going to pay for it, and then I can tell you what we can do." Independent Senator Angus King of Maine echoed Cornyn's concerns, telling Business Insider: "The lack of mention of where the money is coming from worries me."
Industry Welcomes Plan, Emphasizes Multimodal Approach
Despite funding uncertainties, the freight industry has expressed strong support for the initiative. The Coalition for America's Gateways and Trade Corridors (CAGTC) emphasized the need to focus on multimodal freight infrastructure. While Trump predicted that the 2017 tax reform law would boost economic growth, CAGTC argues these benefits might not be fully realized without sufficient federal investment in freight infrastructure.
"For years, federal investment in freight infrastructure has lagged while our population and national economy have grown," said CAGTC Executive Director Leslie Blakey. "This financial burden cannot be shouldered by states, localities and the private sector alone. We welcome President Trump's commitment to advancing an investment plan at the federal level."
Blakey noted that "existing programs are oversubscribed," and joined others in urging the administration to commit "significant resources" beyond current funding levels, including at least $2 billion annually dedicated to freight projects. Currently, America's freight system moves 55 million tons of goods worth over $49 billion daily - equivalent to 63 tons per person annually. With the U.S. population projected to grow by 70 million by 2045, industry leaders argue the infrastructure network must be capable of handling this expanding consumer base.
Trucking Association Pushes "Build America Fund"
Meanwhile, the American Trucking Associations (ATA) is urging lawmakers to support its "Build America Fund" proposal, described as "a bold solution to finance the modernization of our roads and bridges." ATA President Chris Spear stated: "Roads are not a partisan issue - Republicans and Democrats both use them. As both chambers of Congress know, modernizing infrastructure requires significant investment - actual, real revenue. America cannot rebuild with financing gimmicks and fiscal schemes."
The ATA publicly supports a 5-cent annual increase in fuel taxes over four years to help fund the Build America Fund, with adjustments for inflation and improved fuel efficiency capped at 5% annually. The association estimates this would generate $340 billion in new revenue over the first decade. Trucking executives, including FedEx founder Fred Smith, have long advocated for higher federal fuel taxes as the best way to support the struggling Highway Trust Fund, which has required over $60 billion in federal bailouts during the past 17 years.
Stakeholders Propose Solutions for Infrastructure Future
The U.S. Chamber of Commerce is advocating for a 5-cent fuel tax increase over five years to help fund major infrastructure upgrades. They argue infrastructure should be viewed not as a problem but as an opportunity for innovative thinking from America's brightest minds across government and business sectors.
Rich Funk, Procter & Gamble's Vice President of Product Supply, emphasized that the future of transportation will involve greater automation with AI systems, but warned: "The only thing missing is the infrastructure we don't have now. That will slow the movement and investment happening in the industry." He identified bottlenecks in Chicago, St. Louis and California that disrupt product flows as key areas needing attention.
Bill Goodwin, General Counsel for AirMap, highlighted the importance of digital infrastructure for unlocking the potential of drone technology, particularly following their valuable assistance during hurricanes Harvey and Irma. "There is a gap between what drones can do and what they're allowed to do," Goodwin noted, emphasizing that digital infrastructure could help address concerns limiting broader drone adoption.
As debates continue over funding mechanisms and priorities, stakeholders across industries agree that America's infrastructure challenges require bold, collaborative solutions to support economic growth and maintain global competitiveness.