Chao says private investors can help boost transportationJanuary 11, 2017 9:34pm

WASHINGTON (AP) — The incoming Trump administration is looking to "unleash the potential" of private investors to boost the national transportation networks that underpin the U.S. economy, the president-elect's pick for transportation secretary, Elaine Chao, told lawmakers Wednesday.

Economic gains are being "jeopardized" by aging infrastructure, rising highway fatalities, growing congestion and a failure to keep pace with emerging technologies, Chao testified before the Senate Commerce, Science and Transportation Committee.

Chao, 63, is expected to be easily confirmed by the Senate. She was labor secretary during George W. Bush's administration and deputy transportation secretary under President George H.W. Bush. Her husband is Senate Majority Leader Mitch McConnell, R-Ky.

When McConnell introduced Chao at the hearing, he stole a line from former Senate Majority Leader Robert Dole: "I regret I have but one wife to give for my country's infrastructure." Dole's wife, Elizabeth, is a former transportation and labor secretary.

Chao joked, "I will be working to lock in the majority leader's support tonight over dinner."

But she hasn't been immune from criticism. Unions say that as labor secretary, she mostly sided with industry when enforcing labor and safety rules.

Chao advocated using "innovative financing tools" that can "take full advantage of the estimated trillions in capital that equity firms, pension funds and endowments can invest." She said private investment should be encouraged with "a bold, new vision."

She didn't detail those incentives, but a paper written by two economic advisers to President-elect Donald Trump recommends providing $137 billion in tax credits to infrastructure investors. His advisers predict that will generate about $1 trillion in investment over 10 years.

But transportation experts note that investors are interested only in transportation projects that produce revenue, such as toll roads, and there are relatively few large projects like that. They say states need financial aid from the federal government to help with a growing backlog of maintenance and repair projects for aging highways, bridges and transit systems. Providing tax incentives also runs the risk of providing a windfall to investors for projects that would have been built anyway.

Sen. Cory Booker, D-N.J., asked Chao if she and the incoming Trump administration would support infrastructure legislation that includes direct federal spending on transportation in addition to efforts that generate private financing.

"I believe the answer is yes," she said.

That could put the new administration at odds with conservatives who insist that federal spending be restrained. Sen. Mike Lee, R-Utah, urged Chao to consider greatly reducing the federal gas tax that pays for most highway and transit spending, and leaving nearly the entire responsibility for transportation to states.

"I am open to all ideas," she replied.

Trump repeatedly promised during the campaign to spend $1 trillion on roads, bridges, railways, airports and other types of infrastructure. It's one of the main ways he said he would create jobs. But he has said little about this since the election.

Republican congressional leaders have said they'll wait to see what Trump proposes before tackling a public works bill. Trump has said he expects to be occupied early in his administration with cutting taxes and repealing President Barack Obama's health care overhaul. Infrastructure isn't expected to be dealt with until late spring.

Democrats at the hearing tried to pin Chao down on contentious issues such as whether to privatize air traffic control operations and whether she would enforce a deadline for railroads to install train control systems that can prevent many derailments and collisions. Chao said those decisions would be up to the Trump White House or that she hadn't been briefed on the issues yet.

As transportation secretary, Chao would be responsible for regulating auto, truck, train, transit, pipelines and aviation safety. The department frequently faces pressure from industry to relax safety rules and block new ones.

Chao, who has been associated with conservative think tanks, is likely to lend a sympathetic ear to industry pleas for less regulation.

___

Follow Joan Lowy at http://twitter.com/AP_Joan_Lowy. Her work can be found at http://bigstory.ap.org/content/joan-lowy

Page 1 of 1

More Stories Like This

Rep. Elijah Cummings, D-Md. speaks during a news conference on Capitol Hill in Washington, Thursday, Jan. 12, 2017, talking about staff member Katie Malone who worked as a special assistant in his Catonsville, Md. office. According to Cummings, Malone lost six children in an early morning fire in Baltimore, Md. (AP Photo/Manuel Balce Ceneta)
GOP lawmakers go after ethics official who criticized Trump
Trump's CEO meetings raise ethics questionsPresident-elect Donald Trump's meetings with CEOs seeking federal approval for massive mergers are raising red flags for ethics lawyers
FILE - In a Thursday, Jan. 12, 2017 file photo, Senate Armed Services Committee member Sen. Elizabeth Warren, D-Mass. questions Defense Secretary-designate James Mattis on Capitol Hill in Washington, during the committee's confirmation hearing for Mattis. Donald Trump's election has propelled Warren into an even sharper partisan spotlight as she embraces her role as a top Democratic foil to the Republican president-elect. (AP Photo/J. Scott Applewhite, File)
Warren embraces her role as a top Democratic foil to Trump
Inauguration highlights Trump's infrastructure opportunitiesLeaders in the nation's capital region say local infrastructure woes gives Trump an opportunity to show he can deliver on a campaign promise.
FILE - In this Jan. 5, 2017 file photo, House Speaker Paul Ryan of Wis. holds his copy of insurance premium statistics during a news conference on Capitol Hill in Washington. Ryan urged the GOP-controlled House to pass a “critical first step toward delivering relief” from President Barack Obama's signature health care law as the chamber steamed ahead on legislation that is the first step toward repealing it and replacing it with something else.  (AP Photo/Manuel Balce Ceneta, File)
Early win on budget pressures GOP to deliver on health care
A portable restroom, with the name “Don’s Johns” covered up, is seen on Capitol Hill in Washington, Friday, Jan. 13, 2017. Virginia-based Don’s Johns calls itself the Washington area’s top provider of portable toilet rentals, but the name apparently strikes too close to home for inaugural organizers. Workers have placed blue tape over the brand name on dozens of portable restrooms installed near the Capitol for the inauguration. (AP Photo/Matthew Daly)
Don's Johns a name not quite right for this Inauguration Day
AdChoices

Related Searches

Related Searches

AdChoices