President to unveil infrastructure funding initiative

President Obama is to unveil a new federal initiative to help cities and states find private financing for transportation infrastructure.

The announcement comes as the White House looks to increase pressure on Congress, which this week is debating a short-term fix to the rapidly depleting highway trust fund that underwrites road and mass transit construction.

Under the plan to be unveiled by Obama, the Department of Transportation will open a new investment centre designed to serve as a ‘one-stop shop’ for state and local governments seeking private loans to underwrite construction projects, according to a White House official. The centre is also designed to provide technical assistance and guidance to governments seeking access to federal credit programs and private capital.

The president will also order the creation of an interagency working group, chaired by Transportation Secretary Anthony Foxx and Treasury Secretary Jack Lew, which will undertake a focused review on how the government can expand and increase private investment and collaboration in infrastructure.

The House on Tuesday approved a uS$11 billion short-term bill, supported by the White House that would extend funding into next year. The Senate is expected to consider the House bill early next week. If action isn’t taken by 1 August, the federal government will halt payments to state governments underwriting transportation projects.

In addition, the Treasury Department will host an infrastructure investment summit in September designed to match institutional investors, developers, and local governments.