(Reuters) – The Trump administration is preparing an up to $1 trillion infrastructure package focused on transportation projects as part of its push to spur the world’s largest economy back to life, a source familiar with the situation said on Tuesday.
The Department of Transportation’s preliminary version reserves most funds for projects such as roads and bridges, but will also set aside about a quarter of the money for priorities such as 5G wireless infrastructure and rural broadband, two sources said.
The White House, which has made similar proposals in recent years, is aiming to unveil its latest effort in July, one of the sources said. News of the potential additional stimulus, first reported by Bloomberg, supported a U.S. stock market rise on Tuesday.
President Donald Trump, a Republican, is running for re-election in November. He is eager to boost the economy to bolster his political prospects after criticism of his handling of the coronavirus pandemic and the response to protests after the death of a black man in police custody in Minneapolis sparked protests worldwide.
As the economy slowly recovers from the roughly two-month shutdown to limit the spread of COVID-19, the Trump administration is looking at measures to jump-start employment.
The administration proposal would extend the law authorizing highway and other surface transportation funding. The current law, known as the FAST Act, authorized $305 billion over five years and is set to expire on Sept. 30.