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Democrats of the House Committee on Small Business argued this week that the Trump Administration’s recently released infrastructure plan would shortchange small businesses to benefit large Wall Street companies. In a hearing with entrepreneurs and experts testifying, Democrats laid into the President’s broken promises to deliver meaningful infrastructure reform. Instead of driving local economies into debt, they argued that infrastructure reform ought to prioritize job creation and generate opportunities for small firms.

 “President Trump’s infrastructure proposal makes one thing clear—when it comes to investing in America’s crumbling roads, bridges and ports, he expects someone else to foot the bill,” said Vice Ranking Member Rep. Alma Adams (D-NC). “This dangerous proposal deflects onerous payments to cash-strapped states and puts the interests of Wall Street giants over the wellbeing of Main Street businesses.” 

For decades, small companies have dominated many of the industries that maintain, strengthen and upgrade America’s infrastructure and transportation networks. Operating in construction, architecture and engineering, many small businesses would be poised to benefit from a robust infrastructure program.  However, Democrats on the Committee noted the Administration’s infrastructure initiative fails to ensure that small firms would receive their share of federal work. 

“I find it telling that, in the Administration’s 53-page infrastructure document, the phrase ‘small business’ does not even appear once,” said Adams.  “Absent an assurance that small firms will receive their fair share of this work, the small business sector should be very skeptical of this plan.”

Just as small businesses can benefit by performing infrastructure work, entrepreneurs rely on sound infrastructure to safely transport their goods.  Unfortunately, President Trump’s plan woefully underfunds infrastructure priorities, cutting over $168 billion from existing transportation and infrastructure programs. Moreover, the plan places the cost burden for the projects on localities and encourages the privatization of many public infrastructure and transportation assets, Democrats added.

“Trump’s plan slashes real Federal investments and shifts the burden to cash-strapped States and local governments,” Alma added. “It allows large companies and foreign investors to toll our roads and bridges.  This privatized approach would mean many small companies will be paying Wall Street companies to access transportation arteries.” 

Time and again, infrastructure spending has helped to propel small firms to economic success.  In fact, 61 percent of the jobs directly created by infrastructure spending would be in the construction sector, 12 percent in the manufacturing sector, and 7 percent in retail trade – totaling 80 percent in these three sectors alone. Furthermore, 90 percent of these jobs would be well-paying middle class jobs, and many would support America’s small businesses.

Democrats have long emphasized that America’s decaying infrastructure must be rebuilt and modernized to create jobs. Now, they have proposed A Better Deal to Rebuild America, a robust $1 trillion investment to modernize broken infrastructure, expand rural broadband and create over 16 million American jobs.

“Democrats believe that hardworking Americans deserve a ‘A Better Deal,’ that Main Streets cannot be overlooked for Wall Street and that real infrastructure reform requires sustained federal investments,” said Adams. “We look forward to moving that agenda forward, but, first, that requires rejecting the reckless proposal by the Trump Administration.”

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