billion in direct federal investment will be made. the ideas they will try to leverage from state and local governments and the private sector the other $800 billion. even $1 trillion, as much as that would be a step in the right direction, and assuming the plan would be successful, and i am not sure everyone is clear on that -- we are still missing the mark by, you know, half. dinges is with the american society of civil engineers. infrastructurereportcard.org is where you can see their findings. thank you for your time. guest: thank you. host: joining us now is eugene mulero. we are talking about the trump administration's plan for infrastructure. good morning. guest: good morning, pedro. host: what we know about the plan? guest: we know several things --

the white house wants to unveil it before the state of the union. plans beforeo has the consumer conference in las vegas. also, the $200 billion that are going to be from direct federal spending, we know from the white house infrastructure advisor, they are going to ask for money from existing federal accounts, and when you reach the $200 billion mark, that would incentivize $800 billion in private-sector funds. now, that is a different debate whether or not you can reach that mark over 10 years. also $25 billion will be allocated for rural projects. 3t is very difficult to get a p polling facility to be profitable along rural highways. then you will have a real push on the part of the white house and the administration to

streamline environmental for construction projects, these big infrastructure projects. the aim is to take it from 10 years down to two years. critics will point out that is extremely difficult. you know, this is something that is extremely necessary for these major projects. you know, the environmental permitting, etc.. the other thing that we know -- two other things -- the administration wants to call on committo commit to -- more of the transportation investment so that it is not only raising fuel taxes, but also, with other funding mechanisms to -- come up with other funding mechanisms and they want to encourage tolling. that is going to be somewhat controversial because not a lot of drivers like to pay tolls.

host: that is a laundry list of things they want to accomplish. goal.s the white house's how much cooperation with the get from key leaders in congress? guest: it would be extremely difficult to get cooperation on the part of members of congress, especially transportation leaders, mainly because this is an election year, and not a lot of the transportation authorizer's -- they want to avoid a tough vote for this year, especially right before the elections. if you have something -- if the white house actually presents a gas tax increase and put that on the table, it will be a tough call for members of congress to vote on whether or not they're going to increase taxes, and go back to constituents and argue in favor of that. also, members from merle district -- rural districts -- some are the top leaders on capitol hill. senator john thune comes from south dakota. he is on the commerce committee.

the chairman of the highway committee and the senate. you have congressman bill shuster who recently announced he is not going to seek reelection. he is from rural, western pennsylvania. these members of congress know , tolling, that p3's don't work in their district. they're going to call for other fund and -- funding mechanisms. then democrats, taken aside the political oculus of whether or not if you are a democrat and you are to work -- political calculus of whether or not if you are a democrat you want to work with the white house and republicans for another achievement by president trump, do you want to work on an effort that is privatizing infrastructure projects, where that is contrary to a lot of democrats who want to see more of a federal role.

lastly, within the house republicans, you will have moderate republicans and the clash over the role the federal government should have in transportation. host: eugene mulero -- you heard him talk about these efforts when it comes to infrastructure spending. if you want to ask him questions about the political back-and-forth going on so, from here, you said they may unveil something before the state of the union. talk about the timeline. what are we looking at? guest: the timeline for the unveiling? host: the passage, or at least working on this bill. sources tell me you will present before the state of the union. trump president will tout it -- president trump will tout it

during his state of the union address. hisas alluded this, and in new york times interview he said he wants to make 2018 the infrastructure year. we are expecting to see the legislative principles of this .lan the white house is indicating it might be a 70-page document. they will make that available, and it is up to numbers of congress. it will most likely originate in the house. congressman bill shuster, the chairman of the highway subcommittee, a republican from azeri, they will most likely unveil legislation, have it in committee, bring it up to leadership, get it up for a vote on the house floor. at the same time, the senate is going to look at what the house is doing and come up with a plan. we are expecting some time by the spring for these markups to

commence. at the same time, the timeline is going to be really iffy because congress has a lot of other things on the docket. governmentou know, spending, the debt ceiling, children's health insurance, hurricane, disaster relief aid -- that is the ideal best case scenario. that is what i'm hearing from embers of congress and their staffers, but that is all subject to change. i lookf i am a state and at this funding formula of $200 billion from the white house, billion, that0 means i have to fundamentally changed the way i approach the federal government when it comes to money for structured products? guest: for some -- four infrastructure products? guest: for some states. youru have already raised taxes for the structure spending, you are doing what the white house wants you to do.

what we know from the white house plan, those states have to dedicate additional funding for projects they would like to modernize or just maintain, upkeep. foryou have to scramble funds, which these states struggle to come up with anyway, just so they can appeal to the white house and have the white tose come in and agree partner with them and dedicate some funding. one avenue that many states -- one that i can think of is oklahoma -- what they are doing and they are seeking these federal transportation grants. traditionally, they have been the tiger grants, which began during the obama administration, and now these freight grants raat have been renamed inf grants undersecretary elaine chao. through these grants, you continue to seek these additional moneys.

then you have to -- your government and state legislators have to come up with more money to repair these critical projects, many of which are to enhance capacity along your freight corridors. taxes that raise their gas have to scramble to come up with more money, and states that have not raise their gas taxes, they will be encouraged to do so. the americanof associate in the civil engineers -- association of civil engineers pointed out there were gas taxes, but they were not easy votes. you could point out members could lose their seats for taking the tough vote. at the same time, are you going to take a similar vote again and say we have to raise fuel taxes against? new jersey hadn't done so since the mid-1980's.

so, where do you find the money? the governors, all of them are starting to have their state of the state addresses. they are calling on the federal government to play a major role in this. there will be an expectation of pullback from governors when the transportation plan comes out. host: let's take some calls. this is eugene mulero. the first call is from elizabeth, new jersey. independent line. bill, you're on with our guest. go ahead. thank you. once we start the fish after spending the number one priority mta subway, long longer -- the long island railroad. they are a complete mess. we would have had a tunnel opening sometime this year under the hudson river, which governor

christie killed when he got into office. the new york metropolitan area has to be the number one priority for infrastructure spending. host: thanks. guest: that is a very valid point. elizabeth, new jersey, is right next to the newark airport. you have both senators from new jersey -- menendez and cory booker -- they have been sounding the alarm that new jersey, the tri-state area, connecticut and new york, is a huge economic hub, and the newly -- called itnor of a national disgrace. so, new jersey has consistently asked for federal funding to update nj transit. you have proponents of amtrak called for more money for amtrak. it goes from new jersey to penn station in new york. that is a valid point.

we can fully expect this year members are present in urban districts calling for more money for transit projects. host: florida. daniel is on our line for democrats. yes, pertaining to so-called stimulus for infrastructure i cannot go back -- i can't help but go back to talk about the $800 billion plus, the $1 trillion obama confiscated from the american taxpayer. there was no accounting for a dime of it. as much as i love donald trump, i anticipate the same kind of -- host: we got you, caller. are there parallels to be made with this white house and what we saw under president obama and stimulus spending. guest: not necessarily. the stimulus -- some of that

money was made available to states so states could apply, seek those funds. also, part of the whole incentive there, under obama, the u.s. dot created the tiger grants. these were funds that were part of the stimulus package, and they were for shovel-ready projects. while they were readily available for states, there was an application process. there was a permitting process. some states did get it. other states were seeking those funds. that money was there, you know, to be sought. what we are expecting to see from the white house, president trump's white house is quite different. instead of having federal funds, have 20% of it be direct money from federal accounts to incentivize $800 billion of private sector money. when president trump has been

talking about this trillion dollars over 10 years, we are learning he was saying $200 billion with the aim of $800 trillion -- $800 billion. it is quite different. host: the state creates a pool of money, and in the white house as we will chip in part of it as well. guest: and then the state seeks partners with investors, bankers, other companies, and they will team up to rebuild a .ridge, a tunnel that is what we are expecting to be the goal. i want to point out, this is quite a shift from the current system. the current system relies on the highway trust fund collecting fuel taxes in order to help states pay for the maintenance projects. the problem we have seen is the highway trust fund cannot meet all of this obligation, so there have been some injunction of federal funds -- injection of

federal funds to pop up the highway trust fund to meet these obligations. what we heard from the white house, the official tripadvisor dg griffin -- infrastructure advisor, dj griffin, if they want to take the federal role, enhance the state will, and have states partner with investors. that is something -- while we have seen these private/public partnerships before, laguardia airport being a famous example of that, nevertheless this will be to really, really enhance it and spread it around the country. host: eugene mulero. this is freddie from los angeles, california. republican line. caller: kiss anyone has noticed, the guy did not answer the last caller's question. where is all the tax money that has been spent by the government -- federal, state, local, all

these years. i live in the state of california. taxes, ased our 13-cent gasoline tax to build more roads. what are you doing with the tax money you are taking in now --where is it going? you mentioned the highway trust fund -- why isn't it taking care of this -- the government rated the trust fund for their own pet projects to buy more votes and get reelected. this is ridiculous. we will spend more money on " infrastructure," and it will go to environmental groups that can go to court and stop it. guest: i enjoy the passion behind the caller in l.a. l.a. voted to come up with a whole pool of money to repair their highways. i don't know the exact number, but it was a referendum, and the of l.a. are taking it

upon themselves to repair and reduce congestion in their city. the highway trust fund, the way it is set up, it is 80% for highways, 20% for transit. you can argue whether you need to change that -- make it 100% for highways. that is a debate understood congress will have to have if they do pick up this transportation bill. the stimulus was not money that -- the coffers. , out, takee state the money, and leave. they had to apply for them. part of it was to create these incentives for states to, you know, determine which were the projects of major significance, and at the same time, what the obama administration also did is they created these -- they alled it the build america --

committee, a coalition within the dot to help states come up and access those funds. now, you can debate whether or not the stimulus worked. these infrastructure projects are extremely expensive. states, while you have some repairs done to major bridges, the same time you still have to, you know, come up and go through the permitting process. host: could a case be made that with the new funding mechanism the administration wants to put in there, it could be for big projects, a big bridge, rather than smaller projects that might not see the light of day? guest: do so before major bridges that are structurally deficient, transit corridors an injection of money, such as the d.c. metro system. that is one example. your previous caller, mta in new

york city. this will be your big, blockbuster project. the administration, only now so far from the plan -- what we know so far from the plan if they want to focus on these transformative -- they call them transformative projects. not sure exactly what that will entail, but what i'm hearing from people is they want to have ega regional projects, like the hoover dam, these poster projects that will have a major impact on people's commutes. host: massachusetts. democrats line. hello, eugene. is that you? listen, i'm from massachusetts. i don't know how old you are, but governor wells built the big dig, and it was false cement.

like donald trump, it is like false news, fake news. so, on the cement i spoke to a person that was on that job, and they say a lot of people are going to be killed. andour infrastructure spending, i don't know what that definition is because everybody has a different reaction to that word. please tell me how you feel about the definition of infrastructure when everybody is lying in the united states. guest: i will get to the definition of infrastructure, what the caller asked. dig, before that, the big was a controversial project in massachusetts. there were cost overruns. that has been deemed a poster child of how not to advance a major infrastructure projects. to his question on infrastructure, you know, infrastructure are your -- i

don't mean to be simple about it -- but your major bridges, everything -- roadways,. guest: -- host: we tend to think roads and bridges -- guest: canals, the electrical grid. another preview of the white house infrastructure plan as they also want to include veterans hospitals as part of this. so, it is, kind of, going outside of the realm of the traditional transportation purview. host: even broadband gets folded into that. guest: exactly, and that is more to address the needs in rural district. infrastructure is pretty much all of the above. a simple way that has been , former governor of pennsylvania at rundown -- he started a foundation in one of the cofounders is arnold schwarzenegger, and arnold schwarzenegger -- a story that

governor rendell says is what is infrastructure, where the kids asked arnold, and he said it is the stuff that i blow up in my movies. it is all around us, basically. host: mike. ohio. go ahead. caller: good morning, gentlemen. interesting subject. one of the stories that is flying under the radar will be the attack on prevailing wage and to institute a national right to work for less rule with the combination of government and private investment in these projects. i am sure that this is a concerted effort to drive a nail into -- one more nail into the skilledf decent pay for

people such as operating engineers like myself, iron workers -- skilled trades people , and when you destroy their wages, the very same people that say that it is people like us that make too much money if we are making $60,000 or $70,000 a year. if you go to these right to work states, you will see a higher rate of death on the job, lower pay with no benefits national health benefits, no retirement funds --nothing like that. host: mike, thank you very much. the idea of pay, and how those would build these roads are paid. guest: that will be another huge issue of debate on capitol hill. you will have a lot of lawmakers, especially ones from urban districts, talking about protecting the interests of employees, unions.

sayafl-cio will have a huge behind the scenes with staffers, members of congress, to remind them of the role of the worker, so we can expect that to be part of the equation when they begin to mark up any bill. the bulk of this program today dealing with infrastructure spending. eugene mulero of transport topics joins us. carl in los angeles, california. democrats line. you are next. caller: good morning, everybody. i think infrastructure spending is awesome. i think it is great. the last caller from california -- i don't understand -- roads are being worked on constantly. they are being repaired, advanced. themost important thing is

electrical grid -- it should really be worked on and repaired. it is today i saw telephone line that i saw in the old western movies -- above ground? that is ridiculous. all i have to say. it is a weird topic you have with everything else going on in this country -- the president talking about a big nuclear button. infrastructure? thank you. host: we talk about a lot of topics every day. thank you for calling. eugene mulero. things -- this is not a weird topic at all. this is something president trump touted in his campaign over and over again, then he will be the builder in chief. after the signing of the tax bill, president trump said he wanted to proceed with infrastructure. he had planned to have a package

within his first hundred days in office. when you look around the country, everyone stuck in traffic, the first thing they complain about is the bridge is old and needs to be repaired. you have people with your transit systems -- this is something that affects everybody. from the president on to every member of congress. infrastructure is something that is always on the two-do list. to do list. -- on his point on the electrical grid, he does bring up a good point in there has been an increase in power outages due primarily to the age of electrical grid, and, again, that is part of what the administration, the u.s. dot, and members of congress are going to look at when they start working on this legislation -- what do they do to modernize that aspect. one more call from nashville, tennessee.

independently. rick, go ahead. caller: good morning, gentlemen. i would like to make a comment about the state in which i live. i live in the capital of tennessee, nashville. by leaps is growing and bounds. we had a big medical industry, and insurance industry here, and also the entertainment industry here, and not only with hockey, pro football, we're getting a soccer team, and we have all the stuff going on. i want you to pay attention to this real close. from interstate 65, runs chicago to nashville, tennessee. chattanooga.m always interstate come through nashville, tennessee. there are four and six lanes coming into nashville. outside of nashville they in a loop. you have 65 and interstate 40 running from the east coast to the west coast coming into two

lanes in downtown nashville, tennessee. we have a liberal mayor that has made us a sanctuary city that is now looking at a billion-dollar infrastructure for rail system. system ineed a rail downtown nashville. you will go up different cities, that allows rural people to hop on the trains. do it like the japanese have done it. we're wasting money. host: thank you. guest: i think his overarching point is there is an impetus to enhance capacity. i can't speak specifically about but these major urban centers, big cities, mayors, governors, members of congress, they realized the need to enhance capacity. you have the trucking industry talking about this for years that being struck in traffic is excellent detrimental to the

economy. takes about $63 million annually -- the economic impact of the trucking industry. enhancing capacity, that is on and ige to do list -- mean capacity on surface transportation -- it is a huge to do list for your mayors and your governors. that is a debate in nashville on where you put your transit system. that is a local debate. host: eugene booktv. >> "washington journal" continues. host: we are joined by bud wright. he is the american association of state highway and transportation officials executive director. would you represent? guest: