President Donald Trump and his administration are considering a $1 trillion infrastructure plan to help boost the economy out of the coronavirus pandemic.
According to Business Insider, a preliminary version of the plan is being prepared by the Department of Transportation. In the proposal, the majority of funds will be used to refurbish roads and bridges across the country. The rest would be earmarked to build out the country’s 5G network and improve internet capabilities in rural areas.
Trump has released several infrastructure proposals during his term. Last year, he agreed in principle on a $2 trillion plan with the Democratic Party. However, the plan never got off the ground and House Democrats released an infrastructure plan worth $760 billion over five years in January.
Funding will be a major sticking point in Trump’s plan. He has not released how the plan will be funded. Trump tends to favor plans that involve little government funds and significant private investment, while Democrats prefer it the other way around.
“Since he took office, President Trump has been serious about a bipartisan infrastructure package that rebuilds our crumbling roads and bridges, invests in future industries, and promotes permitting efficiency,” White House spokesman Judd Deere told Business Insider.
Infrastructure is a big part of Trump’s reelection plan. He’s been pushing for a $2 trillion infrastructure plan to take advantage of low-interest rates, which would allow the US government to borrow at minimal costs.
Last year, a bipartisan plan to fix roads, expand broadband access to rural communities, and more was being worked on, but Democratic Sen. Chuck Schumer said at the time the two sides were unable to figure out how the package would be paid for.
Naeem Aslam, the chief market analyst at AvaTrade, believes if Trump can get an infrastructure plan passed, it would be a huge boost to his chances at reelection.
“The Trump administration’s move to prepare the $1 trillion infrastructure proposal is likely to pass all the hurdles and if it becomes the reality, it could really change the course the economy and Trump’s chances of becoming the president again.”
Democratic nominee Joe Biden discussed his own infrastructure plan last week during a digital town hall last week.
“The second move is to rebuild the economy and the way you do that is infrastructure,” Biden said “You invest in new major initiatives, for example, I have a trillion-dollar proposal for infrastructure. Look at all the schools in America particularly the ones in African American neighborhoods, where you cant drink the water, where the air you breathe is not clean.
“We should be spending $100 billion renovating all those schools; we’ll create good-paying jobs, we’ll put people in position to gain on their income as well.”