Elaine Chao breezed through her confirmation hearing Wednesday, a three-hour affair where she acknowledged under questioning that she believes at least some part of President-elect Donald Trump's $1 trillion infrastructure vision will include direct federal investment.
At the hearing before the Senate Commerce Committee, Cory Booker (D-N.J.) asked Trump's pick for transport secretary bluntly: “Do you and President-elect Trump support an infrastructure package that will include direct federal spending?”
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“I believe the answer is yes,” Chao said. In response to a request from Bill Nelson (D-Fla.), she also said she would try to provide the committee with details on the proposal within 30 days of Trump taking office.
Her answers on that score may help reassure Democrats and some in industry who have criticized Trump's plan amid suggestions that it may rely heavily, possibly even solely, on tax breaks and private capital. But the few areas where Chao got into specifics Wednesday mostly involved calls for speeding up project delivery, finding "innovative" strategies around funding, incentivizing private investment, and bolstering public-private partnerships.
While Democrats have mostly been the ones to raise concerns about how Trump's plan will address funding, on Wednesday there were indications that the proposal could also run afoul of rural-state Republicans anxious that private investors might neglect their constituents.
Shelley Moore Capito (R-W.Va.), a new member of the committee, expressed fears that it could be challenging to “incentivize private dollars to go to less populated, less economically developed areas of our country” where infrastructure projects might not generate enough of a revenue stream to entice investors. She also noted that many states are "having trouble meeting their [matching funds], much less trying to figure out how to cobble together a PPP."
And Commerce Chairman John Thune (R-S.D.) asked that Chao be sure to include a rural perspective on the task force on infrastructure she promised the new administration will be assembling, because "some things we’re hearing today don’t reflect” a commitment to rural parity.
Chao responded by saying infrastructure presents an "opportunity for bipartisan agreement" to rebuild America. But Thune held fast: “The urban/rural thing is my version of bipartisanship,” he retorted.
Chao had acknowledged the challenges earlier, saying P3s are "embraced by some and not by others. For them to be truly effective, there are revenue streams that need to be assured."
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"So whether groups on either side of the political aisle will agree is something that we have to talk about," Chao said.
Beyond that, Chao mostly emerged unscathed from the hearing, which featured her promises to get up to speed on various issues, and humorous asides such as one from Brian Schatz (D-Hawaii), who observed that he'd never seen Majority Leader Mitch McConnell hug someone. "I'm glad it was me," Chao piped up.
On the other subject lawmakers were most eager to pin her down on — whether Trump will endorse a House plan to spin air traffic control away from the FAA — Chao demurred, saying she was aware of various sides of the issue, but that the administration had yet to take a position.
Several members expressed enthusiasm about autonomous vehicles, and Chao echoed some of that excitement, especially since self-driving cars could spell freedom for people who may have challenges driving a traditional car. But she also expressed concerns about safety and privacy, as well as the balance between innovation and regulation, and noted the need for “a national dialogue” on the topic.
“The regulations at the federal level are in [their] infancy,” Chao said, pledging to work with Congress “to make sure we are not dampening the spirit of creativity, and yet we are also assuaging the real deep-seated concerns of many of our public on some of the issues that these new, emerging technologies bring.”
Many times throughout the hearing, Chao sought to hit a balanced note on regulation, insisting that regulations be based on “sound science” and “real data” to make sure “the best regulations are put forward.” She also frequently answered questions by observing that there are at least two sides that need to be brought to the table before a solution can be achieved.
“There are some who think that the regulations of the past few years have dampened the rate of growth of economy and that it has actually decreased competitiveness,” Chao said, “and there are others who feel that these regulations were necessary.” Either way, she asserted that at least some of the regulations have been “overly burdensome” and that they will “need to be reviewed” by the incoming administration.
Without making any promises as to their continuation, Chao also noted that the TIGER grant program and TIFIA loan program have many fans on Capitol Hill and, in fact, constitute the “one area of agreement” among all the members she met with.
