U.S. awards nearly $1 billion in infrastructure grants

By David Shepardson

WASHINGTON (Reuters) – The U.S. Transportation Department said Friday it was awarding nearly $1 billion in infrastructure grants as the Biden administration prepares to dramatically boost funding on the nation’s roads, bridges, rail, transit and other projects.

The grants under the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program are going to 90 projects in 47 states, the District of Columbia and Guam, to rebuild roads and add rail lines — but also create new green space, new trails, bike lanes and safer streets for pedestrians.

Transportation Secretary Pete Buttigieg said the department had received a “a ten-to-one ratio of requests to available dollars” for the grants.

Seattle will receive $20 million to reconstruct a 1.1-mile road segment and will also add a bike lane. Washington County, Oregon will receive $12.2 million for a 15-mile trail.

Charlotte, North Carolina will receive $15 million to construct a new multimodal transit center and New Orleans is getting $18.5 million to improve transit fare collection. Manchester, New Hampshire will receive $25 million to reconnect the city’s South Millyard district to surrounding neighborhoods and downtown.

Atlanta will receive a $900,000 planning grant to advance a project to “cap” the I-75/I-85 Downtown Connector highway, which would create 14 acres of green space and reconnect neighborhoods separated from downtown by the highway.

Republican Representative Garret Graves said the Biden administration was funding green space rather than focusing on eliminating congestion. “This is supposed to be a transportation program. We sit in traffic and they get ‘green space.'”

Under the $1 trillion infrastructure bill signed into law by President Joe Biden, the Transportation Department will receive $660 billion over five years, including $210.5 billion to be awarded in competitive grants. Of that $71 billion is for new grant programs.

Department officials are crossing the country to tout infrastructure spending. Buttigieg is in Phoenix to discuss the bill’s impact on transit and airport funding, while Deputy Secretary Polly Trottenberg is Pennsylvania and other department officials are in California.

(Reporting by David Shepardson; Editing by Kim Coghill)

At least two dead in magnitude 6.4 quake in Taiwan

The aftermaths of earth quake are seen in Hualien, Taiwan, February 6, 2018, in this picture grab obtained from social media video.

TAIPEI (Reuters) – A magnitude 6.4 earthquake struck near the coastal city of Hualien in Taiwan late on Tuesday, the U.S. Geological Survey (USGS) said, killing at least two people and causing several buildings to collapse.

The quake struck about 22 km (14 miles) northeast of Hualien shortly before midnight, and the epicenter was very shallow at just 1km, the USGS said.

“Two people were unfortunately killed, and 114 have suffered light or severe injuries,” Taiwan’s Premier William Lai told an emergency government meeting.

A number of aftershocks hit the area, but there was no word of any tsunami warning.

Hualien is a popular tourist destination on Taiwan’s eastern coast and home to about 100,000 people.

“The president has asked the cabinet and related ministries to immediately launch the ‘disaster mechanism’ and to work at the fastest rate on disaster relief work,” President Tsai Ing-wen’s office said in a statement.

Lai said the government was urgently repairing a major highway damaged by the quake. He said the government would provide further updates on the situation later on Wednesday morning.

Among the buildings toppled in the quake was the Marshal Hotel in Hualien, where three people were trapped inside, the government said.

Four other buildings, including two hotels and a military hospital, also tilted during the quake in Hualien, which is located about 120 kilometers (75 miles) south of the capital, Taipei.

The government said two bridges in the city were either cracked or could not be used due to the quake.

On Sunday an earthquake with a magnitude of 6.1 struck nearby.

Taiwan, a self-ruled island that China considers part of its territory, is prone to earthquakes.

More than 100 were killed in a quake in southern Taiwan in 2016, and some Taiwanese remain scarred by a 1999 earthquake with 7.6 magnitude whose impact was felt across the island and in which more than 2,000 people died.

(Reporting by Jess Macy Yu and Taipei bureau; Editing by Tony Munroe and Gareth Jones)

Trump administration’s infrastructure plan taking shape

: Steel beams on the draw span, which needs replacement, are shown on the Arlington Memorial Bridge in Washington, U.S., June 20, 2016.

By Ginger Gibson and David Shepardson

WASHINGTON (Reuters) – The Trump administration is finalizing its long-awaited infrastructure plan, which would push most of the financing of projects to private investment and state and local taxpayers, according to sources familiar with the proposal taking shape.

President Donald Trump, who spoke frequently of improving U.S. infrastructure during his 2016 campaign, may preview the plan in his Jan. 30 State of the Union address, but details are not expected until afterward, the sources said.

Two people briefed on it said it would likely recommend dividing $200 billion in federal funding over 10 years into four pools of funds. The administration is structuring the plan in hopes of encouraging $1.35 trillion in state, local and private financing to build and repair the nation’s bridges, highways, waterworks and other infrastructure, one source said.

The U.S. Chamber of Commerce, the largest business lobbying group in Washington, is even backing a 25 cent increase in the federal gasoline tax to make that happen.

It is unusual for a business group to call for a tax increase, but the Chamber argues that it is necessary to fund critical infrastructure projects.

“It’s time to invest in a 21st century infrastructure, a system of infrastructures to support and grow a 21st century economy,” said Tom Donohue, the Chamber’s president, in a speech on Thursday as part of the organizations renewed public push for action.

“It’s time to make up for decades of underinvestment that today is evident in everything from bone-rattling potholes and endless traffic gridlock, to deadly train derailments and destructive water main breaks,” he said.

The numbers in the Trump plan are still in flux and could change before he unveils it. The prospects of winning approval in Congress are uncertain given that Republicans have only a 51-49 majority in the Senate.

Many Republicans want to use private-sector investment to finance infrastructure projects to avoid increasing the national debt. Democrats believe that government money is necessary to produce such a large package.

COST-SHARING

Under the Trump plan being shaped, the largest share of the federal money – $100 billion – is expected to go toward cost-sharing projects with local governments, similar to grants.

The goal would be to reduce the ratio of federal funding, which often now is 80 percent, by awarding funds only to projects that are able to provide more local funding or leverage private investment, said a business lobbyist familiar with the discussion.

Some $50 billion would be earmarked for rural projects, the lobbyist said. Those funds would help governors on projects like roads, broadband access and replacing aging lead pipes. Including a pool for rural infrastructure could also reduce concerns among some Republican senators who fear rural areas may be unable to attract private investments.

Twenty-five billion dollars would go toward existing federal infrastructure loan programs that seek to spur private investment, the lobbyist said.

The final $25 billion would be designated for so-called transformative projects – an effort being dubbed “American Spirit” projects. They could include high-speed trains or the Gateway Tunnel, the stalled proposal to build a new rail connection between New York City and New Jersey.

The plan may not deliver any additional federal money than in years past. The proposal could take $200 billion from existing spending plans – although the administration has not yet committed to whether it would come from existing programs or whether the money would be found elsewhere.

The administration is unlikely to rule out any forms of funding – including increasing the federal gas tax or creating a vehicle mileage tax, which would put electric cars that now use the roads but do not consume much gasoline on the same footing as cars with internal combustion engines, sources said.

Donohue made four recommendations for the infrastructure package including raising the gas tax and also recommended expanding the ability of states to access private investment funds to complete projects, reducing the federal permitting process and addressing state and local permitting rules.

He also called for more federally backed workforce training – including more apprenticeship programs. As part of that, Donohue reiterated the Chamber’s call for passing comprehensive immigration reform, a proposal where business has been at odds with the Trump administration.

(Reporting by Ginger Gibson and David Shepardson; Editing by Damon Darlin, Peter Cooney and Susan Thomas)