Infrastructure was at the heart of President-elect Donald Trump’s economic plan, yet his approach to infrastructure is not well known. Prudent innovation is the cornerstone of his approach, and he has taken some of the most innovative bipartisan ideas for infrastructure financing and moved them from the periphery to center stage.
When you look at how Trump plans to raise and deploy capital, you see prudent, innovative financing, in that his approach will likely include four innovative financing tools. These tools are: 1) public-private partnerships or P3s, 2) a federal tax-credit bond, 3) rationalizing the regulatory process, and 4) repatriating U.S. dollars through tax reform to pay for projects.
Today, enormous amounts of U.S. dollars sit abroad. Companies do not want to repatriate them because of the tax hit involved. The Trump plan wants to give companies a tax break to bring those dollars back, so long as they are invested in U.S. infrastructure. This