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On May 13, 2021, the Chamber distributed testimony to each member of the Massachusetts delegation regarding the U.S. Infrastructure plan, the various proposals in play, and clearly explains the importance of bipartisan consensus on infrastructure investments.
Bold thinking and collaboration hinges on bipartisan leadership to shape how Congress will fund and define an infrastructure package. Several major proposals are in play. The American Jobs Plan is expansive while the Senate Republican proposal is a scaled down investment. The Problem Solvers Caucus’s plan emphasizes traditional infrastructure and includes funding through user fees.
With each proposal under consideration, we urge Congress and President Biden to demonstrate collaborative leadership and accomplish a bipartisan compromise on both the scope and the funding of an infrastructure plan. Proposals that are unrelated to and distract from infrastructure discussions – like expanding access to long-term care under Medicaid – however worthy, should not delay action on the investments Americans need.
Funding for an infrastructure plan, particularly transportation infrastructure, should be built on the link between funding sources and uses. For transportation funding, it is time to raise the federal gas tax. Second, because climate reduction goals will lead to a decline in gas tax revenues over time, there should be new or increased fees that will withstand the shift away from gasoline consumption. Electric vehicle fees and pilot programs for vehicle miles traveled proposed by the Problem Solvers Caucus are the right approach.
Congress has an opportunity not just to invest in infrastructure; it has an opportunity to begin to unify a country that has been polarized for too long. Infrastructure affects peoples’ daily lives all over this country and drives the economy. The impact of improvements is tangible.
The need for infrastructure investment is undeniable. The most recent Infrastructure Report Card from the American Society of Civil Engineers rates national infrastructure a C-, and notes that 43 percent of public roadways in the US are in poor or mediocre condition. The same study rates transit infrastructure a D-, bridge infrastructure a C, and energy infrastructure a C-.[1]
Massachusetts itself needs infrastructure investment, particularly on transportation to improve conditions for drivers and riders.
The Chamber’s transportation policy agenda outlines additional major projects in various stages of implementation that would support economic growth and improve quality of life in Massachusetts. This includes the MBTA’s Red-Blue Connector, East-West Commuter Rail, the I-495-I-90 interchange, and Cape Cod bridges. The cost of these projects is tens of billions and does not include the investments needed to electrify regional transit systems to reduce emissions. Similarly, investments in the electric grid are vital for Massachusetts; our economic growth will be closely tied to the strength and durability of our electric grid because of the state’s recently enacted climate law and the coming shift to electrification.
Infrastructure investments, particularly on transportation projects, have clear economic benefits. They quickly create good jobs and launch careers in construction, maintenance, design, and other fields directly involved in the infrastructure projects. Infrastructure investments strengthen our economic recovery and growth by creating connectivity and a transportation system that safely and reliably supports the movement of goods and people.
[1] https://infrastructurereportcard.org/
[2] Federal Transit Administration, National Transit Database, Safety & Security Major-Only Time Series Data, December 2020.
Carolyn Ryan
Senior Vice President, Policy & Research
[email protected]617-557-7310
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