The Trump administration is turning its focus towards investing in infrastructure and the $1 trillion dollar pledge made during the presidential campaign. While the federal government certainly plays a role, the largest share of investment in infrastructure in the United States is financed at the state and local level (see chart). And there has been a marked drop in state and local infrastructure spending since the Great Recession -- a cause for concern that members from both parties can agree on, as there is widespread agreement that the state of U.S. infrastructure is deficient.

While President Trump has consistently discussed a $1 trillion infrastructure plan, the details have been left unspecified. Few believe that it would consist of $1 trillion invested from federal funds. A combination of public private partnerships, where the private sector would contribute an important share of the funding, as well as local and state investment are likely to play key roles. Both of these strategies hold potential and pitfalls. The devil is in the details. For more see this EconoFact post: How Should We Pay For our Infrastructure? by Brandeis University economist Daniel Bergstresser.

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