- US President Donald Trump is considering launching a $US1 trillion infrastructure stimulus plan, according to Bloomberg.
- Bloomberg said that most of the funds would go to infrastructure work in roads and bridges, and the rest of the funds would be devoted to improving 5G and rural broadband, confidential sources said.
- Trump has been pushing for a $US2 trillion infrastructure plan for most of his presidency, but has been unable to get it over the line.
- Funding has been a major sticking point for previous infrastructure proposals launched by Trump, with Republicans and Democrats disagreeing on how to pay for the plans.
- Trump is due to discuss rural broadband at a White House event on Thursday.
- Visit Business Insider’s homepage for more stories.
US President Donald Trump is considering an infrastructure plan worth $US1 trillion to help revive the economy from the fallout of coronavirus and push ahead with his longstanding goal of spending big on US infrastructure, Bloomberg reported Tuesday.
Bloomberg, citing confidential sources, said a preliminary version is being prepared by the Department of Transportation.
Under the plan, most of the money will be earmarked for infrastructure work in roads and bridges meanwhile the rest of the funds will be devoted to building the US 5G network and improving internet services in rural areas of the country, the sources said.
Trump is due to discuss rural broadband at a White House event later this week.
The president has launched numerous proposals for infrastructure spending during his presidency, and last year agreed in principal a $US2 trillion plan with the Democratic party. It, however, never got off the ground.
In January, the Democratic-led House proposed its own $US760 billion plan to renew infrastructure spending over the next five years.
It remains unknown how the Trump administration would fund the programme, with funding being a major sticking point for previous infrastructure proposals launched by Trump.
The president favours paying for the plans with minimal government money and involving the private sector, while Democratic rivals propose majority government funding.
Judd Deere, White House spokesman said in a statement: “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.”
Trump has been calling for a $US2 trillion infrastructure plan to take advantage of low interest rates, which would allow the US government to borrow at minimal costs. He has focused on improving infrastructure as part of his efforts to seek re-election this November.
“With interest rates for the United States being at ZERO, this is the time to do our decades long awaited Infrastructure Bill,”Trump said on Twitter in March.
The Trump administration moved in 2017 to disband a planned infrastructure council that was set to include leaders from the transportation, construction, and labour industries, Politico reported at the time.
Both the Democrats and Republicans agreed last year to craft a $US2 trillion infrastructure package to fix roads, expand broadband access to rural communities, and more.
But Democratic senator Chuck Schumer said at the time the two sides did not flesh out how the package would be paid for.
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House Speaker Nancy Pelosi and other top Democrats left a meeting last May furious with President Donald Trump’s reported refusal to work with the opposition party on infrastructure as long as investigations into his dealings with Russia and Ukraine were ongoing.
Naeem Aslam, chief market analyst at Avatrade, said: “In Trump news, the US president, Donald Trump has always wanted to improve the infrastructure of the US and what other better time could be for doing that then now when the economy is on its knees, unemployment in through the roof, and more importantly, US elections are just around the corner.”
“Trump administration’s move to prepare the $US1 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,” he added.
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