The two former officials will lead infrastructure investments
Related Companies hired two former Obama transportation officials to lead infrastructure investments, the WSJ reported.
Why this matters: President Trump has promised a $1 Trillion infrastructure plan. Republicans in Congress would like to see a privately-funded plan, while Democrats want to use federal funding.
How the partnership works: The Republican plan would be funded largely by private sources, who would be repaid with tax credits and usage taxes (i.e. toll roads). Administration officials said that 17% of the initial investments would be financed with equity and the remainder with debt. The government would then provide a tax credit equal to 82% of the equity to reduce the cost of financing.
Takeaway: Infrastructure is next on the agenda after Tax Reform. Smart move by Related to position themselves to secure a windfall if infrastructure passes.