U.S. House of Representatives Speaker Paul Ryan just weighed in on infrastructure which he views as ‘critical for the foundation of economic growth.’
Over the first 200 days, he supports infrastructure as an element of the Republican’s ‘big, bold, do it now’ approach.
His focus is on leveraging private dollars to modernize American infrastructure so that tax-payers do not pay for everything. Ryan views private money as an important, but not only, way of paying for infrastructure.
Also like the President-elect, Ryan favors streamlining the regulatory review process.
So, support for private investment in infrastructure is gaining steam, even if it is viewed with skepticism in some quarters.
What’s our take away with all this.
For those doing business in the infrastructure area, it is important to look at the fundamental challenges President-elect Trump and members of Congress are seeking to address.
One of the main challenges is how to fortify the purchasing power of infrastructure users. Infrastructure investment drives individuals’ incomes, but they may not have the income that they need today to pay for infrastructure modernization.
Finding a way of doing this through a commercially-driven mechanism is the ideal outcome and core to the President-elect's approach.
This is part of a broader challenge America faces right now.
This challenge is also important when it comes to paying for sectors like water, transit, broadband, and social infrastructure which can be expensive to modernize and expensive to use.
The folks who have deals that meet this challenge will be first in line for federal support.
If you would like to discuss what deal structures will work within our new infrastructure funding environment, let me know.