The White House released its budget proposal on Tuesday, and most of America is focused on the increased defense spending and promised tax reductions paid for by large spending cuts to international aid, the Department of Education, the State Department, and programs like Social Security and Medicaid. Those in the transportation industry however are interested in the 6-page “fact sheet” that gives a first look at President Trump’s promised $1 trillion infrastructure plan. Perhaps the most controversial portion is a section which calls for eliminating the restriction against new tolls on our nation’s highways.
Speaking with reporters on Tuesday, DOT Secretary Elaine Chao said the sheet outlined the key principles of the infrastructure plan which she described as “simple and yet quite profound.”
During his campaign, President Trump spoke often about his plan to revitalize American infrastructure with a $1 trillion investment. The promise was even featured prominently in his inauguration speech. Now the White House is proposing spending $200 billion in federal money over 10 years, and raising the remaining $800 billion from states, cities, and – most importantly – private investment.
The 6-page outline devotes only one paragraph to the topic of tolling. The rest is given over to proposals like privatizing air traffic control, increasing infrastructure flexibility at the Department of Veteran’s Affairs, expanding the Transportation Infrastructure Finance and Innovation Act Program, and more. But despite the small amount of ink devoted to it, a lift of the ban on new tolling locations on existing roads could have a huge impact on trucking and the entire country.
The International Bridge Tunnel and Turnpike Association (IBTTA) was quick to praise the idea of new tolling locations, calling for congress to “reduce burdensome regulations that prevent state and local governments from utilizing all available funding mechanisms.” The president of IBTTA went on to say that “the power of tolling is proven and effective.”
But others, such as the American Trucking Association, the National Association of Truck Stop Operators, and the Alliance for Toll-Free Interstates, aren’t so sure. A spokesperson for ATFI claimed that tolls are “the worst funding mechanism available and are a highly inefficient use of funds,” pointing out that as much as 20% of even all-electronic tolling revenue goes towards administrative costs and private-sector profits.
And while the outline does not require new tolls, according to ATFI, the only way to raise enough money to bridge the gap between the federal government’s $200 billion contribution and the $1 trillion target would be “through widespread tolling to produce private sector profits.”
Some anti-tolling advocates are concerned that public-private partnerships could result in more cases like the infamous Indiana Toll Road. In 2006, the state gave a private Spanish company a 75-year lease in exchange for a $3.8 billion payment to plug a budget gap. In the first five years, tolls for commercial trucks doubled, and then in 2014 the privatized toll road filed for Chapter 11 bankruptcy.
“Leveraging the Private Sector” is stated as one of the infrastructure plan’s key principals. When you pair that with the Trump Administrations frequent calls for public-private partnerships, there is huge momentum moving toward new tolling – at least from the White House.
But Congress isn’t exactly enamored with the White House’s budget. According to Business Insider, multiple top Republicans including Sen John McCain, criticized the budget. McCain called it “dead on arrival” and in a published statement claimed that aspects of the budget proposal are “illegal under current law.”
The infrastructure funding project doesn’t rely on the success of this budget however. It’s been a cornerstone of President Trump’s “America First” plan since the campaign. So even if the budget that is finally approved looks nothing like the one that was just released, the infrastructure project will likely continue to be pushed by the White House.
“Public-private partnership sounds innovative,” said the ATFI. “What we need to understand is that public-private partnerships in the context of surface transportation are nothing more than toll roads.”
Source: truckinginfo, whitehouse, fleetowner, overdrive, washingtontimes, thehill, forbes, thehill, businessinsider
Marcel Dunant says
it sounds like more money out of truker pockets. we already pay more than our fair share.
Owner operators are doomed, big box companies will just pass it along .
Charli says
Smh and there he goes. Killing the very people that loves him most.
Rufus Crank says
I agree. Every load I pick up weighs more than my truck. How much are the corporations going to pay in infrastructure tax? While they hide their money overseas to evade taxes,More of my revenue goes to paying for their profits. Quit worrying about shareholders,and start helping stakeholders.
Melissa says
Good point
Speedy121 says
When a Toll shows up, the secondary hwys be come busy.
Towns see more trucks and create more laws against trucks or tolls are paid because of land/water blocks.
The IN / OH toll roads = US 20, US 6, and US 30.
MrNA says
For once I back the ATA on something. I would rather Trump focus ensuring competent, efficient, and affordable construction costs. Pay at the pump. No ton mile. No private sector.
Harold Hart says
I can tell commentors are not well versed in economics and taxes. ALL TAXES AND BUSINESS COSTS ARE PAID BY CONSUMERS. Corporate taxes are paid by those holding stock in a corporation, i.e., your 401k’s and other retirement plans and pensions. Cost of the tax is passed on to you and I the consumer when we purchase something. We are going to pay for good roads, it’s just how we pay that’s up for discussion.
MrNA says
Harold,
Businesses, especially OO truckers do absorb increased costs and they are not always in whole passed on to the consumer. That’s a fault of the individual OO.
And some of us are versed. that is why I support pay at the pump. And from experience with ton mile states. ie: Oregon and New Mexico.
MrNA says
Yes. We will pay. And that is exactly why the costs need to be managed correctly. So we ” pay for good roads”.
Richard Fessenden says
But we do not have to pay for corporations to skim money out of the public infrastructure. This is a give away program for billionaires.
Michael Charette says
more money out of the truckers pocket? It could be more money when they start taking 50% of the pay for taxes so I would say quit your bitchen and get the job done .I understand though exactly where you are coming from , I was there at one time in my driving career and its been a while since I have driven in more then 2 states. The cost of everything is rising except the salary . Pretty soon that 50% just might be a reality .
William Serenity Trucking Womack says
Plain and simple. We need the states to stop outsourcing things, period. ! Sold toll road to some spanish owned company. Wow really. The states are stealing from us all. Please allow me to explain. They set the budget high, they have a use it loose it mentality, means wasteful spending, they sub contract, taking away possible good american jobs for the state, pocket the money saved , then ask for mire taxes. Bull#!$? .
George says
Where is the billions that we already paid? Can they account for funds already received? First and foremost the Gov must be audited and held accountable. Lol
Rodney says
Truckers are robbed by the states and government everyday and they will continue to be robbed ordered around mistreated because truckers allow it truckers have the strength and power to take control of our future as truckers the world stops if the worlds truckers stop.
gail says
If it smooth’s out the horrible condition of roads. so be it.