Infrastructure Plan Underwhelms
It boasts a big dollar value, but opposition will necessitate revisions.
On Feb. 12, the Trump administration released a 55-page outline of its long-touted infrastructure plan. After reviewing the 10-year, $1.5 trillion proposal, we’re left underwhelmed. In its current form, the plan isn’t the panacea that U.S. infrastructure desperately needs. However, given the importance of addressing infrastructure, we think this plan will serve as a starting point. Although there are significant challenges facing the passage of an associated funding bill, we continue to believe that infrastructure is in such critical need that a solution is inevitable.
In its 2017 Infrastructure Report Card, the American Society of Civil Engineers estimated that the United States needs $2 trillion in infrastructure investment to address the system’s poor and still-deteriorating conditions. At first glance, the $1.5 trillion Trump plan looks like a decent effort to address these needs. Upon further examination, however, we’re not optimistic that the plan will achieve the desired outcome.
Kristoffer Inton does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.