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Senate hearing tackles how to pay for infrastructure plan
 


WASHINGTON, D.C. — How to pay for the infrastructure improvements needed in the United States was focal to a Senate hearing last week about the Trump administration’s infrastructure proposal.

USDA Secretary Sonny Perdue was one of the panelists at the Committee on Commerce, Science and Transportation hearing on rebuilding infrastructure in America. Representatives from the departments of Transportation (DOT), Commerce, Labor and Energy also spoke.

Every one of the speakers stressed that something needs to be done now to improve the infrastructure of the country. About 20 percent of roads in the U.S. are rated in poor condition. Most of the dam systems are decades out of date.

The problem isn’t confined to transportation. Water and wastewater systems need to be replaced. Broadband internet needs to be made available to large segments of the population.

The problems are becoming more frequent and more problematic, especially in rural America. Elaine Chao, DOT secretary, said rural America has a disproportionately high number of motor vehicle deaths compared to urban areas.

Agriculture will be one of the primary industries impacted if infrastructure is not repaired, Perdue noted.

Each speaker made a few brief opening remarks, then each member of the committee had a few minutes to ask questions. The questions focused on how the different departments suggested paying for the infrastructure repairs.

Sen. Jon Tester (D-Mont.) said his state and the local governments in Montana are cutting funding to essential programs because they can’t pay. The current budget cuts funding to the rural water and wastewater programs, which did a good job. It is replacing it with a program that Tester said will not build infrastructure.

Perdue agreed the current program is good and does work well. The USDA thinks the new program will build new infrastructure in different areas.

“Given the high priority press given to rebuilding America … you’d think we’d be further along,” said Sen. Tammy Duckworth (D-Ill.).

She said the President has been cutting funding to infrastructure programs. Any money that is being set aside cuts infrastructure funds. The panelists presented broad, sweeping problems that need to be addressed, but Duckworth wanted to know where the federal money will be found.

Commerce Secretary Wilbur Ross said the government could recycle assets, federal land or buildings that are not being used.

Sen. Cory Gardner (R-Colo.) objected to how new tariffs could impact all industry and consumers, but specifically the cost of infrastructure plans. A study conducted for the proposal did not budget for the increased costs of plans based on the tariffs on imported steel, aluminum and other goods.

He asked how a 19 percent tax on consumer goods would impact the economy. “It would increase the cost of (steel and aluminum products) and devastate the economy,” Ross replied.

Ross said the United States has filed 100 complaints submitted against about 30 countries for the way steel in those nations is priced and shipped to the U.S.

The World Trade Organization (WTO) has fewer than 50 cases regarding steel dating back to 1998. Two decades ago, many of the complaints were against the U.S. for measures put in place to try to protect its steel industry. More recently, many countries have had disputes with Asian countries for steel, stainless steel and steel pipes.

Trump has spoken out against the WTO. Ross said during the hearing that the agency needs to be updated, but a similar organization needs to be in place to mediate disputes.

Committee Chair John Thune (R-S.D.) said then-President Dwight Eisenhower and Congress in 1958 saw the need to connect the entire country with reliable roads and bridges. Today, the goal is the same, but it focuses not just on roads and bridges; internet access and water services need to be considered, as well.

Currently, 56,000 bridges are structurally deficient and Americans spend 8 billion hours a year stuck in traffic, he said. The lack of connection hurts businesses and farmers and ranchers, specifically.

The proposal is not a highway bill, Thune said. It focuses on broadband and water projects, too, and the committee’s job is to make sure the proposal covers national problems and considers all regions. The committee members’ jobs are to make sure they get the policy right and decide what can be afforded, he added.

3/21/2018