We’re facing a $1 trillion funding gap in U.S. infrastructure spending befor the end of the decade. The country loses an estimated $280 billion each year because of crumbling roads, bridges and water pipes. And $50 billion in infrastructure investment capital (over the next five years) was represented in the room at last week’s Infrastructure Investment Summit in Washington D.C., which was convened by the Treasury and Transportation departments.
With those kind of numbers, a $1 million initiative by the Ford and Rockefeller hardly seems big enough to even be called a first step. But it is designed to demonstrate a model and attract additional funding to build a pipeline of inveestable public-private projects. The commitment was enough to get a shout out from U.S. Transportation Secretary Anthony Foxx in his blog post about the event:
The new partnership will expand the infrastructure pipeline by incubating innovative public private collaborations, including a predevelopment fund for innovative projects and public-private partnerships. By demonstrating the benefits of predevelopment funding, the partnership will help build the case for increased predevelopment funding from states and from the federal government.
The Treasury also announced that they will identify the country’s 25 or 50 most economically significant transportation and/or water infrastructure projects, while Foxx himself is asking mayors and governors for help identifying infrastructure projects that are good candidates for innovative financing solutions.