The Trump administration is preparing a huge new infrastructure proposal as part of its push to spur the U.S. economy back to life. A preliminary version being prepared by the Department of Transportation would reserve most of the money for traditional infrastructure work, like roads and bridges but would also set aside funds for 5G wireless infrastructure and rural broadband, the people said.
In addition, the president is scheduled to discuss rural broadband access at a White House event later this week.
The report notes that an “existing U.S. infrastructure funding law is up for renewal by Sept. 30, and the administration sees that as a possible vehicle to push through a broader package,”
The draft plan is emerging as lawmakers from both parties and the administration debate the timing and scope of additional stimulus for “a U.S. economy plunged into recession by nationwide lock-downs needed to halt the spread of coronavirus.” This is the latest sign of momentum in Washington for some kind of infrastructure spending blitz ahead of the election, Bloomberg said.
House Democrats have offered their own $500 billion proposal to renew infrastructure funding over five years. It’s unclear how long the administration’s draft would provide spending or how it would pay for the programs. The House Transportation and Infrastructure Committee is scheduled to markup that measure today.
Like most things in this election year, the infrastructure effort is controversial. For example, Democratic groups are telling their members to resist the administration’s efforts. Senate Minority Leader Chuck Schumer, D-N.Y. and Sen. Sherrod Brown, D-Ohio, -- the Banking Committee’s top Democrat -- told the new watchdog in charge of overseeing the pandemic corporate bailout fund they’re concerned the proposed effort “won’t be independent from his former employer: The White House.” Brian Miller, the newly confirmed special inspector general for pandemic recovery, most recently served as a White House lawyer and participated in the president’s impeachment defense.
“You must resist influence or pressure, uphold the law, and protect taxpayers’ interests — even if it places your job at risk,” the senators said in a letter delivered this week. “Ultimately, your duty is to the American people, not the president.”
In the meantime, the Fed inserted itself even more deeply into efforts to protect private companies from the fallout of the coronavirus. Bloomberg notes that this effort is “finally” underway but suggests that “the central bank is nervous about managing the long-term risk.” As the Fed chair Jerome Powell prepares to defend these efforts before Congress the back-story of how the central bank became lender of last resort to Main Street shows the extreme lengths to which officials were ready to rewrite their old crisis playbook to confront COVID-19.
In addition, this week, dramatic evidence that everything is focused on politics now can clearly be seen as the president resumes his signature campaign rallies. Bloomberg says the rally planned for June 20 in Tulsa, Okla., is shaping up as a “possible nightmare scenario for public health officials,” as supporters gather in an arena that holds nearly 20,000 people, with no special capacity limits, “despite concerns that crowded, indoor events are ideal for transmitting the coronavirus.” The campaign plans to give a mask and hand sanitizer to everyone who attends — and require them to agree to a waiver absolving the campaign of liability if they get sick.
So, we will see. Clearly, the coronavirus is affecting almost everything this year and events like the Tulsa rally can be expected to play a role — as will the dynamics of the rally itself and its eventually consequences. The infrastructure effort also could be important, at least partly since it has long been promised and proved deeply controversial in the past. This is an effort that should be watched closely by producers as it emerges, Washington Insider believes.
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