TRG | The Bottom Line – 5/28

Next week the White House and GOP Senators will meet once again to further discussions on an infrastructure plan.  The two parties edged closer to an agreement on the much-discussed bill earlier this week when West Virginia Senator Shelly Moore Capito announced the GOP would put forward a nearly $1T plan focusing on traditional infrastructures such as road, bridges, rail, and water. Senate Minority Leader McConnell was quick to announce the GOP would be willing to go even higher in order to strike a deal. Despite some expected pushback from the White House, next week’s meeting could provide meaningful progress as Congress looks to get an agreement this summer.  For their part, state DOTs continue to ramp for a busy construction season. Recent feedback with state officials suggests DOT coffers post-COVID are in much better condition than expected. Several DOTs have raised prior revenue estimates citing better than expected diesel fuel sales, booming auto sales and registration fees, reduced operating budgets, and stimulus funding. Several contacts shared the CARES Act funding helped “fully, or more than fully, offset” revenue losses from COVID-19. We found that to be a remarkable statement given where consensus was exactly one year ago.