After decades of underinvestment, we face an extreme infrastructure deficit in the United States. In order to bring our infrastructure into the 21st century and support a growing economy, we need to invest more in essential projects including highways, water and sewer systems, bridges, airports and more.
The Trump Administration has identified infrastructure as one of the top priorities of the President’s agenda, but its fate is tied to tax reform.
The problem we face is not a lack of capital, but rather the ability to identify reliable funding sources to support debt service, return on capital and maintenance costs. At SIFMA, we recommend fully preserving the tax exemption for municipal bonds; expanding Public-Private Partnerships (P3s), including the use of Private Activity Bonds (PABs); promoting private investment in public projects; applying design-build strategies; and reviving direct-pay bonds. In order to bring our infrastructure into the 21st century, we need to invest more without imposing burdens that can weigh down our economy.