For new infrastructure, apply Republican approach to power and communications

[Commentary] The incoming Trump administration and the new Republican Congress seem interested in providing tax advantages and new debt availability for infrastructure spending. But project developers will need revenue to pay off debt. So the infrastructure has to generate income. To pay back debt and guarantee that infrastructure spending is productive, projects need user fees. The problem is that more than 90% of transportation infrastructure is publicly owned, publicly funded and used for free. Without revenue prospects, private sector developers are not going to enter the business of rebuilding most roads, bridges, tunnels, sewers, water systems, and dams.

On the other hand, almost all 21st century infrastructure is privately owned, funded by users through various fees and charges, and ripe for huge new private spending. To really make America great, the new administration and Congress should make the tax advantages and finance benefits for infrastructure applicable to the 21st century infrastructures of power and communications.

[Reed Hundt is the CEO of Coalition for Green Capital and a former Chairman of the Federal Communications Commission]