Dive Brief:
- Virginia Transportation Secretary Aubrey Layne said President Donald Trump transition staffers asked the state for a list of prospective transportation projects that could utilize tolls, according to WTOP.
- Layne said the toll caveat reduces the submitted list of projects from a total list of $8.5 billion potential local and state initiatives. He told WTOP that the state has about $1 billion to tackle all of the projects in Virginia that have requested state funding.
- The request from the Trump team is in line with the underlying principle of the president's $1 trillion infrastructure plan, which is to pursue private investment for revenue-generating projects with the lure of an 82% tax credit for investors.
Dive Insight:
The Virginia Department of Transportation has ranked potential projects based on its SMART SCALE system, a prioritization method introduced last year. Projects receive scores based on their potential for economic development, as well as congestion, safety, land-use qualities, environmental impact and accessibility. The VDOT said the most weight is given to the economic and safety aspects, and the state included the first scored projects in June's multiyear, $14.4 billion transportation plan.
Maryland also has a similar project scoring system, but Gov. Larry Hogan has railed against the policy, although he and his administration are not bound to fund or deny any initiative based on its score.
Although upgrading critical assets is largely a bipartisan issue, Democrats are resistant to a plan that relies heavily on private money, with Senate Minority Leader Charles Schumer, D-NY, calling a proposed 82% tax credit in exchange for private equity investment a gimmick. Schumer said the plan should include significant, direct federal spending, a move that Senate Major Leader Mitch McConnell, R-KY, warned would be met with Republican resistance.
However, despite concerns regarding private investment, House Speaker Paul Ryan recently said he aimed for the infrastructure plan to include $40 of private money for every $1 of public money, and he added that public-private partnerships would play a major role.