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Trump's New Infrastructure Plan Calls For Selling Off Two Airports (politico.com)
The Trump administration has released an infrastructure plan on Monday that proposes that the federal government considers selling off Ronald Reagan Washington National Airport and Washington Dulles International Airport. According to Trump's blueprint, the administration wants to allow federal agencies to divest assets if they "can demonstrate an increase in value from the sale would optimize the taxpayer value for federal assets." It also includes the George Washington and Baltimore Washington parkways, the Washington Aqueduct and the transmission assets of the Tennessee Valley Authority and Bonneville Power Administration on the list for "potential divesture." Politico reports: State and local agencies or the private sector may be better at managing assets currently owned by the federal government, the administration argues, and federal agencies should be able to "identify appropriate conditions under which sales would be made." They should also "delineate how proceeds would be spent." Under the administration's proposal, federal agencies would have to complete an analysis demonstrating an "increase in value from divestiture." Though technically owned by the federal government, both airports are operated by the Metropolitan Washington Airports Authority under a long-term lease agreement. The 53-page infrastructure plan lays out a vision to turn $200 billion in federal money into $1.5 trillion for fixing America's infrastructure by leveraging local and state dollars and private investment. "The White House says its plan will create $1.5 trillion for repairing and upgrading America's infrastructure," reports CNNMoney. "Only $200 billion of that, however, would come from direct federal spending. The rest is supposed to come from state and local governments, which are expected to match any federal allocation by at least a four-to-one ratio. States have gradually assumed more of the responsibility for funding infrastructure in recent years, and the White House says it wants to accelerate that trend."
As for how the money would be split up, the plan says that half of the new federal money, $100 billion, "would be parceled out as incentives to local government entities," reports CNNMoney. "An additional $20 billion would go toward 'projects of national significance' that can 'lift the American spirit,'" while another $50 billion will be designated "for rural block grants, most of which will be given to states according to a formula based on the miles of rural roads and the rural population they have," reports CNNMoney. "The rest of the money would support other infrastructure-related undertakings..."
As for how the money would be split up, the plan says that half of the new federal money, $100 billion, "would be parceled out as incentives to local government entities," reports CNNMoney. "An additional $20 billion would go toward 'projects of national significance' that can 'lift the American spirit,'" while another $50 billion will be designated "for rural block grants, most of which will be given to states according to a formula based on the miles of rural roads and the rural population they have," reports CNNMoney. "The rest of the money would support other infrastructure-related undertakings..."
As an Australian that moved to the US a few years ago and does a lot of flying for work, I'm on the fence when it comes to airport privatisation proposals. One of the interesting differences between the US and Australia is that, despite the fact that the US is generally more in favour of private sector delivery of services (think healthcare etc.), it has overwhelmingly kept its airports publically owned. Most major airports in the US are publically owned, whereas I think every major Australian airport was privatised many years ago.
On the one hand Australian airports are wayyyy nicer than US airports. More modern and up to date, cleaner, more spacious, better and more facilities etc. Nicer places to be in by a long shot. US airports, especially some of the major ones (Newark and O'Hare spring to mind) are very overcrowded at peak times, straining at the seams and generally just more unpleasant places to be in (e.g. what's with those disgusting old seats and claustrophobically low ceilings in Concourses E/F at ORD?)
But why are they so much nicer? Because they charge a lot more and thus have a lot more money to pump into improvements. US airport parking fees, even in a major city, are a small fraction of what they are in Australia for instance. I could park at Chicago for a week for what it could cost for a few hours at SYD or MEL. Australian airports no doubt also charge the airlines more than their US counterparts too (landing fees etc.), which indirectly affects ticket prices etc.
So in terms of user experience, private airports seem nicer, but in terms of equity of accessibility to travel itself, publicly owned is the way to go. Prices go through the roof when airports are privatised, if Australia is anything to go by. Travel should not be only for the wealthy.