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Related adds Obama transportation officials

The two former officials will lead infrastructure investments

Former President Barack Obama (Credit: Getty Images)

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.

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