Delaney to Introduce the Bipartisan Infrastructure 2.0 Act to Fix the Highway Trust Fund, Rebuild America

Jan 28, 2015
Press Release
Legislation uses international tax reform to make Highway Trust Fund solvent for six years

WASHINGTON – Congressman John K. Delaney (MD-6) will introduce new bipartisan legislation to address the Highway Trust Fund solvency crisis and spur new infrastructure projects across the country. A new approach to funding and financing America’s infrastructure, The Infrastructure 2.0 Act uses international corporate tax reform to patch the Highway Trust Fund hole for six years, creates a new financing tool and establishes a path for broader pro-growth tax reform and improved infrastructure financing.

Congressman Richard Hanna (R-NY-22) is a cosponsor of the bill. Rep. Delaney expects to build a large bipartisan coalition in support of the Infrastructure 2.0 Act similar to what was built for the Partnership to Build America Act, which closed last Congress with over 40 Republican and 40 Democratic cosponsors.  

The Infrastructure 2.0 Act establishes deemed repatriation at an 8.75% tax rate for existing overseas earnings. This produces enough revenue to provide an additional $120 billon to the Highway Trust Fund, enough for six years of solvency at increased levels, as well as funding for the creation of a new $50 billion dollar American Infrastructure Fund, which will be leveraged to finance $750 billion in new infrastructure projects in transportation, water, energy, communications and education. Finally, the bill also includes a trigger for broader international tax reform and establishes a commission for long-term Highway Trust Fund solvency. While the legislation has not been scored, preliminary indications are that it will score well. (Bill summary below.)

“America’s infrastructure needs to be rebuilt, re-launched and reimagined. To create jobs, compete globally and improve our quality of life, building a 21st century national infrastructure this should be our top economic priority,” said Congressman John K. Delaney. “The Infrastructure 2.0 Act is the new policy solution we need to break the legislative gridlock that’s created clogged highways, crowded runways and costly delays for entrepreneurs and workers. With a looming Highway Trust Fund crisis ahead of us, it is clear that we need a new answer. Over the last two years, I’ve worked with Republicans and Democrats to build bipartisan support for using international tax reform to pay for new infrastructure projects and there’s more momentum behind this framework than ever before. The Infrastructure 2.0 Act addresses our immediate concerns and guarantees that Congress enacts long-term fixes to both the Highway Trust Fund and the international tax code.”  

 “ASCE supports the continued leadership of Congressman Delaney as he seeks to craft innovative, bipartisan solutions that can help address our nation’s infrastructure funding deficit and improve the lives of all Americans. His bill, the Infrastructure 2.0 Act, would provide the revenue needed to fund a multi-year surface transportation bill that would grow the current program while at the same time setting the stage for a more long-term revenue fix upon that bill’s expiration.  ASCE looks forward to continuing to work with Congressman Delaney to #FixTheTrustFund and restore our country’s infrastructure to its former greatness,” said Robert D. Stevens, Ph.D., P.E., President of the American Society of Civil Engineers (ASCE).  

“Improving infrastructure in America is job #1 to increase economic growth and middle class prosperity. Congressman Delaney’s proposal is innovative, leverages the private sector, and would dramatically improve our infrastructure,” said Gabriel Horwitz, Economic Program Director Third Way.

“For many reasons, The Infrastructure 2.0 Act is an innovative and refreshing approach to addressing America’s infrastructure needs. Excavation and utility contractors nationwide appreciate and support Congressman Delaney for introducing this legislation aimed directly at creating jobs and growing the economy through infrastructure investment,” said Will Brown, Director of Government Affairs, National Utility Contractors Association.

“The engineering industry applauds Congressman Delaney for his creative and aggressive approach to addressing our nation’s infrastructure priorities. While Congress needs to raise revenues to support the core federal infrastructure programs, we also need to supplement these investments with additional options and leverage state, local and private sources of capital.  Improvements to the condition and performance of the nation’s transportation system will immediately boost demand for goods and services, enhance public health and safety, and improve our national competitiveness.  In these ways, Congressman Delaney’s innovative legislation is a win-win,” said David A. Raymond, President & CEO American Council of Engineering Companies.

“The Congressman’s proposal puts a lot of good ideas on the table that we hope spur vigorous discussion over how best to use tax reform to finance America’s aging infrastructure.  Congressman Delaney is a serious legislator who understands what levers Congress can use to spur economic growth.  The introduction of this measure is another reminder that Congress should act quickly to address our growing infrastructure needs by identifying the best ways to pay for a long-term federal surface transportation program,” said Stephen E. Sandherr, Chief Executive Officer, Associated General Contractors of America.

The American Business Conference and the American Planning Association have also authored letters of support on the bill.


The Infrastructure 2.0 Act


  • Investing in 21st Century Infrastructure with Deemed Repatriation at 8.75% Tax Rate
    • Under the Infrastructure 2.0 Act, existing overseas profits accumulated by U.S. multi-national corporations would be subject to a mandatory, one-time 8.75% tax, replacing deferral option and current rate of 35%.
      • $120 billion to the Highway Trust Fund, enough to meet funding gap at increased levels for six years.
      • $50 billion to capitalize the American Infrastructure Fund (AIF) a new financing mechanism for transportation, water, energy, communications and education projects. Leveraged to $750 billion, AIF financing (loans, bond guarantees and equity) is available to state and local governments. American Infrastructure Fund was first proposed in Rep. Delaney’s bipartisan Partnership to Build America Act. 
      • $25 million pilot program to create regional infrastructure accelerators, similar to the West Coast Infrastructure Exchange
  • This frees the estimated $2 trillion in overseas earnings to return to the United States, spurring private sector re-investment and growth.


  • Creating Long-term Highway Trust Fund Solvency and Policy Certainty
    • The Infrastructure 2.0 Act provides six years of HTF solvency, providing immediate certainty to the private sector and policymakers.
    • The legislation also establishes a bipartisan and bicameral commission that is tasked with developing a solution for permanent solvency of the Highway Trust Fund.


  • Building a Path for Broader Tax Reform
    • The Infrastructure 2.0 Act creates an eighteen month deadline for international tax reform.
    • To encourage action, the legislation includes a forcing function: if reform is not enacted, a fallback international tax package to make U.S. business climate more competitive would be implemented.
      • This pro-growth fallback reform package would end deferral, reduce anti-competitive over taxation, decrease taxes for companies paying fair rates abroad but increase taxes for companies in tax havens. This would eliminate the lock-out effect and allow for the free flow of profits back to the United States.
      • Under this option, for Active Market Foreign Income, a company would pay a 12.25% tax to the U.S. on overseas profits if they are currently paying no tax and a 2% tax to the U.S. if they are already paying the OECD average of 25% abroad, with a sliding scale in-between.