Analysis: Trump's Infrastructure Plan Would Cost Municipalities Money

After an in-depth review of the administration's proposed infrastructure finance plan, National Association of Clean Water Agencies CEO Adam Krantz concludes: "Ultimately, this is not going to save municipalities money. It’s going to require municipalities to raise more money—more capital and more investment dollars—to do large new projects."

In The Planning Report, Krantz highlights the positives the plan offers for the water sector. For one, it makes water a clearly defined priority in national infrastructure—"something we haven't seen before." 

For another, it encourages collaboration and innovation: "The administration's overlay of innovation is a good thing, and should stay part of any bill."

But core elements of the proposal are troubling to the water agencies represented by NACWA: the additional burden on municipalities to raise capital, the limited amount of funding available, and the emphasis on beginning bold new projects rather than meeting existing infrastructure needs. What municipalities need instead, Krantz argues, is more direct federal spending—a goal he hopes can be achieved in Congress by marrying the administration's push for private partnerships with the funding model proposed by alternative bills.

Krantz's full analysis can be found in The Planning Report.