There are two important opportunities that the PPP community should pursue with the new Congress and the new leadership at the U.S. DOT. Both would focus on removing federal barriers to PPP infrastructure investment, along the lines suggested in the $1 trillion Ross/Navarro proposal I discussed here last month.

The most important of these is to create a level financial playing field for PPP infrastructure as part of the 2017 tax reform legislation. While highways and transit PPPs have been blessed with the availability of tax-exempt PABs, the current $15 billion cap on such bonds is completely inadequate for a major PPP infrastructure renewal program. Three reforms are needed, and should be advocated forcefully as part of tax reform.