WASHINGTON, D.C. – Ahead of the president’s State of the Union address where he is expected to focus on infrastructure, Joint Economic Committee Democrats today released a report on the administration’s plan that is anticipated to shift responsibility for infrastructure onto the private sector and cash-strapped state and local governments. Democrats agree that a major investment in upgrading and maintaining our country’s infrastructure is needed, but it is unrealistic to expect states and cities to foot the bill.

The report, “Republicans Plan Bait and Switch on Infrastructure,” details why a massive influx of public-private partnerships (P3s) would be risky and ignores the significant gap between investors’ motivations in financing infrastructure projects and the public interest. Because state and local governments are resource-constrained, the Republican tax bill adds new fiscal pressures, and because federal investment is key to modernizing infrastructure, President Trump’s long-awaited infrastructure plan would fail to meet the nation’s needs.

“We can all agree that our infrastructure needs a major investment and upgrade, but indications of the president’s plan simply won’t cut it,” said Senator Martin Heinrich (D-N.M.), Ranking Member of the Joint Economic Committee. “Senate Democrats have already proposed $1 trillion in new federal investment in order to maintain roads, bridges, ports, water systems, rail transit and airports, make investments in clean energy, expand access to broadband internet, modernize public schools and VA hospitals, and invest in public lands and tribal infrastructure. We are ready to get to work with the president and our Republican colleagues to ensure that our nation’s infrastructure is upgraded, modernized and ready to support a 21^st century economy.”

The report also highlights how P3s have had little success in the United States. Only 14 highway projects have been completed using public-private partnerships between 1990 to 2014, and three of those declared bankruptcy. Financing infrastructure through tax credits to private investors also can cost nearly 55 percent more than traditional infrastructure financing.

Click here to view the report online.