Obama to Unveil Infrastructure Plan

By GARY FIELDS

WASHINGTON, D.C.–President Obama plans to use an appearance at a Labor Day rally in Milwaukee to unveil a new $50 billion proposal to improve the nation’s highways, airports and railways – the latest attempt by the administration to jump-start the sputtering economy.

The infrastructure proposal is part of a larger plan Mr. Obama will outline in Cleveland on Wednesday to push the economic recovery and provide long-term growth. The White House said the plan builds on the infrastructure investments that have already been made through the Recovery Act.

In recent weeks some Democrats and budget analysts have suggested that the original stimulus package totaling around $800 billion was too small. But with the midterm elections expected to deliver big gains for Republicans in both the House and Senate, it is unclear whether the president’s latest proposal will get much GOP support since many Republican candidates this year have focused on reining in the widening deficit.

Some analysts have suggested that time is running out on the various Democratic economic proposals. The latest unemployment figures released Friday showed that unemployment has risen to 9.6% from 9.5%, despite gains in the private sector.

Part of the plan being released today calls for the funding of a permanent infrastructure bank that would invest in projects most critical to the economy. The up-front investment would go to the nation’s highway system and focus on modernizing the system while providing jobs. There also would be investment in the nation’s bus and rail systems, including an overhaul of Amtrak’s fleet. The final cog would be the modernization of the nation’s air traffic control system.

In an appearance this morning on NBC’s Today show, Labor Secretary Hilda Solis said the infrastructure plan “will put people back to work immediately. These are projects and efforts that have bipartisan support that we know could possibly get support in the Congress and the Senate.” Given the problems with the first stimulus package, the administration is eager to avoid this plan being labeled a second, smaller follow-on. “I don’t think we’re talking about a second stimulus,” Ms. Solis said. “What we’re talking about is looking at some projects that are already out there right now in the Senate. We’re waiting the vote so that we could pass a tax credit for small businesses and open up more lending through community banks. That’s so important.”

The plan envisions rebuilding 150,000 miles of roads; building or maintaining 4,000 miles of railways, and constructing or refurbishing some 150 miles of airport runways along with a new air navigation system aimed at cutting travel times and airport delays.

Write to Gary Fields at gary.fields@wsj.com