On Monday, U.S. President Donald Trump is expected to finally unveil his much-awaited infrastructure plan worth $1.5 trillion. Most U.S. indices and stocks have rallied over the past year since his election as president in anticipation of one of Trump’s biggest plans as a part of his campaign.

Currently, the administration has a plan of using federal money worth $200 billion in leveraging both local and state tax dollars in fixing the infrastructure of the country which includes, airports, ports, highways, and roads. Trump has been known to have pointed out the weak status of the roads and highways in the country to be the reason for the inability of the country’s economy to grow and reach its full potential.

During his previous State of the Union address last month, U.S. President Donald Trump stated that every federal dollar should be used in partnership with the state and local governments which includes the need to tap into the private sector investment appropriately in fixing the deficit of infrastructure in the country.

Over the weekend, officials from the White House have hinted on how the plan would be intended in fixing the current infrastructure spending system which they described to have broken in two sides including the underinvestment in infrastructure as well as the broken system which includes a long federal permit process which needs around five to ten years which results into higher costs being incurred.


While majority of the market expected Trump to proceed with his massive infrastructure plan right away following the beginning of his term, some have also stated that this may lead to higher local and state taxes while there would be a rise in the reliance on toll, water, and sewer fees as well as airline ticket taxes and transit fares. Nancy Pelosi, a house democratic leader has described that Trump’s plan would transfer the burden to states and cities.

According to the White House Budget Director Mick Mulvaney during the weekend, aside from the $200 billion worth of federal funds the administration's plans to use  in stimulating infrastructure changes over the next decade, they also intend to use around $21 billion in two years to be spent on infrastructure as a part of a budget framework deal which was given an approval by the Congress last week.

The White House is also stated to offer state and local governments incentives worth $100 billion with a separate proposal to use a small chunk of the same funds compared to the initial offer of the federal government. The rest of the $200 billion would be utilized among various state projects with $50 billion being allocated for rural project grants, $30 billion for government project financing and $20 billion being allocated for new ideas or “transformative projects” which do goes beyond the simple repair of existing infrastructure.

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