Advocacy groups are keeping a close watch on the Republicans' agenda to see how they move forward on infrastructure spending. Though infrastructure investment is a major theme of President Trump’s campaign, the issue has largely taken a back seat to repeal to pass Tax Reform.
Today I will be writing an article on the impact of Tax Reform and commercial real estate, specifically REITs (stay tuned).
Regarding Infrastructure, the Trump Administration has shown a strong preference for funding investments from the private sector to pay for infrastructure priorities. The idea is to offer financial incentives to private companies that want to back transportation projects.
Under that model, known as a “public-private partnership,” firms bid on a project, build and maintain it for a set amount of time, and recover costs through tolls or set state payments. President Trump has argued that it’s cheaper and quicker when private investors are in charge, as opposed to the federal government (who wouldn’t agree with that?).