Story Highlights Funding for job-creating projects could have a significant impact on New York
President Trump’s plan also includes removal of regulatory barriers to infrastructure
NY governor has already started looking for projects
What Infrastructure Bill Means for New York
The $1 trillion infrastructure plan President Donald Trump proposed last week is only one part of a much larger puzzle that he has yet to put together.
For New York, the plan could help attract private investment and push projects forward, but it could also hurt some of the state’s most vulnerable communities, and reduce the state’s fiscal capacity.
The draft federal plan is vague in its proposal for New York, but said the plan “will also undertake a significant effort on behalf of the State of New York to diversify our economy, and promote infrastructure investments with private capital.”
The plan will include incentives for cities like New York to build projects using private capital, giving direct financial incentives to companies to invest in infrastructure projects, said Carol Kellermann, executive director of the nonpartisan watchdog group Citizens Budget Commission.
It will also work to remove federal barriers to infrastructure, and seek to develop a list of projects the federal government can finance using the money it does have, for example in high-priority bridges, she said.
“That will definitely reduce the investment opportunities for the state,” she said.
Kellermann added that Trump’s proposal would increase tax dollars spent on roads and bridges nationally and in New York City. New York’s share of tax revenue from federal infrastructure expenditures varies, but Kellermann said it was still probably less than $1 billion per year.
More specifically, without clear plans, it is unclear how much of the money will be spent in New York.
“We cannot throw everything but the kitchen sink at the problem,” she said.
New York already has projects in the works that would, if funded, reduce traffic congestion, improve conditions at highway exits, and improve storm drainage, according to Scott Rechler, executive vice president and deputy chairman of Brookfield Asset Management.
Rechler said his company has over $3 billion invested in commercial, residential and industrial properties in New York City and surrounding areas, and would continue to invest in the region.
If the federal government helped finance those projects, Rechler said, “we would continue to build the infrastructure that we have here, to support New York state.”
Mass transit infrastructure in New York is aging, and Gov. Andrew Cuomo has been calling for federally subsidized improvements for years.
Cuomo’s office did not return a request for comment.
CNN’s Pamela Brown and Lynda Ryan contributed to this report.