Washington, D.C.–U.S.
Senator Mike Crapo (R-Idaho), Ranking Member of the U.S. Senate Finance
Committee, delivered the following remarks at a hearing entitled, “Funding and
Financing Options to Bolster American Infrastructure.”
The text of Ranking Member
Crapo’s remarks, as prepared, is below.
“Thank
you, Mr. Chairman, for holding this timely hearing on funding and financing
options for our nation’s infrastructure.
“Infrastructure
investment has traditionally been bipartisan and accomplished through regular
order.
“I
am encouraged by the productive meeting I had last week with President Biden
and some of my Republican Senate colleagues about the need to modernize and
expand our transportation system and broadband network in a bipartisan
manner.
“The
framework Republican Senators discussed with President Biden included: roads
and bridges, transit, rail, airports, drinking water and wastewater
infrastructure, port and inland waterways, water storage, and broadband
infrastructure.
“Consideration
of offsetting the cost of infrastructure with a corporate tax rate increase or
increases in international taxes, especially coming out of the largest negative
shock to the economy on record, is counterproductive and a non-starter on my
side of the aisle.
“With
the FAST Act extension expiring at the end of September, reauthorization of our
surface transportation programs should be the basis of any infrastructure
conversations.
“As
our witnesses will discuss, Congress must provide long-term stability and
certainty for these programs so that transportation agencies, cities, counties
and states across the country can make responsible long-term transportation
planning decisions.
“For
the last few transportation authorizations, Congress has made the decision to
spend more than the receipts going into the Highway Trust Fund.
“In
order to advance a comprehensive, long-term reauthorization bill, it is
important that we do so in a fiscally responsible manner.
“There
is no silver bullet for how to pay for transportation infrastructure, but
historically it has been paid for by user fees, which makes sense.
“For
many years, the users of transportation infrastructure paid fees for that use
through the gas and diesel taxes which were deposited into the Highway Trust
Fund, and then distributed to pay for our nation’s road, bridges and transit
systems.
“There
have been many changes to the transportation landscape since Congress last
raised the gas tax in 1993, such as increased fuel efficiency and a significant
increase in electric vehicles, or EVs, on the road.
“With
this evolution, Congress needs to ensure all users of the transportation
infrastructure are paying into the Highway Trust Fund.
“To
make up the projected $195 billion 10-year shortfall of the Highway Trust Fund,
Congress needs to think creatively of ways to ensure EVs are paying in their
fair share.
“If
we are able to identify a topline spending number and go through a bipartisan
FAST Act reauthorization process, I am ready to work with my colleagues on the
other side of the aisle to do the hard work of addressing the solvency of the
Highway Trust Fund.
“With
that, the United States will have the funding we need to maintain and modernize
our transportation system to meet the rapidly evolving landscape of today and
in the future.
“To
maximize use of taxpayer dollars, we should consider proposals to attract
private capital for infrastructure projects, repurpose unused federal funds,
and improve and expand upon existing infrastructure loan programs.
“We
should consider how public private partnerships can fit into our comprehensive
infrastructure funding and financing approach.
“The
Transportation Infrastructure Finance and Innovation Act (TIFIA), Railroad
Rehabilitation and Improvement Financing (RRIF) and Water Infrastructure
Finance and Innovation Act (WIFIA) are good examples of financing tools that
can leverage federal resources, and we should consider ways those programs
should be improved and expanded.
“Private
Activity Bonds (PABs) for transportation projects have proven so attractive
that the program is oversubscribed, with the $15 billion cap having been met
and additional applications outstanding.
“We
should consider how PABs and other bond programs can be used to help states and
localities move their infrastructure projects forward.
“There
are hundreds of billions of dollars in unspent funds from COVID relief
packages.
“Those
funds should be put to work and repurposed to fund infrastructure projects.
“Mr.
Chairman, the word ‘infrastructure’ itself has become somewhat of a fluid term
lately.
“As
this hearing demonstrates, there is bipartisan support for finding long-term
funding and financing solutions for transportation infrastructure, as well as
increasing access to broadband connections, particularly in rural America.
“Americans
rely heavily upon broadband technology for business, government, education and
personal activities.
“Efforts
have been underway for some time to address a ‘digital divide’ in broadband
deployment between rural, urban and suburban areas to ensure communities,
regardless of size, can access technological advancements.
“The
pandemic magnified the importance of expansive and reliable broadband
technology as so many Americans found themselves working and learning from
home.
“Mr.
Chairman, thank you again for holding this hearing. Let’s get to work in a
bipartisan way to maintain, modernize and expand America’s infrastructure.
“I
thank the witnesses for their willingness to participate in today’s hearing.”
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