“Carr blames the delay on “the addition of a substantive wish list of progressive ideas” to the approval process. In an April 2023 letter to Davidson, 11 Republican U.S. senators warned that “NTIA’s bureaucratic red tape and far-left mandates undermine Congress’ intent and would discourage participation from broadband providers while increasing the overall cost of building out broadband networks.”
Among several examples, the senators noted that NTIA’s BEAD proposal “requires subgrantees to prioritize certain segments of the workforce, such as ‘individuals with past criminal records’ and ‘justice-impacted […] participants.'” The infrastructure law that authorized the program merely required contractors to be “in compliance with Federal labor and employment laws.”
The previous year, in a letter to Commerce Secretary Gina Raimondo, Republican senators warned that the NTIA’s proposed BEAD rollout “creates a complex, nine-step, ‘iterative’ structure and review process that is likely to mire State broadband offices in excessive bureaucracy and delay connecting unserved and underserved Americans as quickly as possible.”
In practice, this is exactly what’s happening: Multiple representatives from the telecommunications industry told MinnPost this week that they had no interest in applying for a piece of Minnesota’s $652 million in BEAD grants. Brent Christensen, president and CEO of Minnesota Telecom Alliance, which represents 70 Minnesota telecom companies, said, “None of them would bid for the federal grants because of the regulations that would come with it—especially the requirement to provide low-cost services to low-income households in exchange for grants that would allow internet providers to build out their networks.”
MinnPost noted that new state laws also “requir[e] companies who receive state grants to pay workers a ‘prevailing wage,’ a basic hourly rate paid on public works projects to a majority of workers in a particular occupation.” Since the federal government’s prevailing wage list does not include telecom workers, “companies in Minnesota would have to pay more because they would have to use a similar, but higher-paying, classification.”
“The solution to the national debt lies in reevaluating and cutting back on unnecessary and wasteful programs, reforming entitlement programs such as Social Security and Medicare, and implementing a more efficient tax system that encourages economic growth.
But none of this can even begin to happen until politicians perceive a demand for it from the American people. Rising debt reduces investment and can slow economic growth, while increasing worries about inflation and the strength of the U.S. dollar. It reduces confidence in the social safety net and increases the risk of a fiscal crisis. Perhaps when these problems manifest, the voters will demand that politicians take the issue seriously. But by then, it may well be too late for the economic stability and growth we have taken for granted.”
“In 2021, the Infrastructure Investment and Jobs Act included $7.5 billion to build 500,000 public charging stations for electric vehicles (E.V.s) across the country in an effort to boost a switch to the use of clean energy.
As Reason reported in December, not one charger funded by the program had yet come online. Now, six months later, the number of functional charging stations has ticked up to eight.”
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“Why so little progress? Alexander Laska of the center-left Third Way think tank told Autoweek’s Jim Motavalli that the federal cash “comes with dozens of rules and requirements around everything from reliability to interoperability, to where stations can be located, to what certifications the workers installing the chargers need to have.” Laska says the regulations “are largely a good thing—we want drivers to have a seamless, convenient, reliable charging experience—but navigating all of that does add to the timeline.”
A spokesperson with the National Electric Vehicle Infrastructure (NEVI) program, which administers $5 billion of the $7.5 billion total, further told Motavalli that the delay is because “we want to get it right.””
“At its current trajectory, the rising national debt—and the increasing burden of making interest payments on it—will reduce Americans’ future income growth by 12 percent over the next 30 years, the CBO projects in a new report. That means the average person will earn about $5,000 less annually than they would in a scenario where the debt was not growing.
“This is the result of crowding out, whereby a higher national debt reduces private investment and slows income growth,” explain the number crunchers at the Committee for a Responsible Federal Budget (CRFB), a nonprofit that advocates for reducing the federal deficit. “With additional debt, income growth would slow further.””
“”If reelected, Donald Trump has said he’s willing to build migrant detention camps and deploy the U.S. military to deport the more than 11 million undocumented immigrants in this country,” Kristen Welker asked of Sen. Marco Rubio (R–Fla.) on NBC News’s Meet the Press. “It would be the largest deportation operation in American history. Do you support that plan?”
“Yes, we are going to have to do something,” responded Rubio after arguing that the number of undocumented migrants is much higher. “Unfortunately, we’re going to have to do something dramatic to remove people from this country that are here illegally, especially people we know nothing about.”
A son of Cuban immigrants and, at one time, strongly critical of Trump’s proposal to end birthright citizenship and otherwise restrict immigration, Rubio’s turnaround matches the direction of his party, which takes a hard line on the issue. But if Trump plans “the largest deportation operation in American history”—his own words, adopted by Welker—we can assume that such a big-government scheme will come with matching costs. That’s exactly what number crunchers predict.”
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“”The costs of the former president’s plan to deport the more than 14 million unauthorized immigrants in the U.S. today could easily reach more than $1 trillion over 10 years, before taking into account the labor costs necessary for such a project or the unforeseen consequences of reducing the labor supply by such drastic amounts over a short period of time,” MarketWatch’s Chris Matthews reported this week of the results of a Penn Wharton Budget Model (PWBM) analysis.
Trump’s plan is still taking shape, though the former and perhaps future president has proposed using both the military and local law enforcement to eject migrants in this country illegally. If that policy was put into effect, “the removal of one million immigrants would cost the federal government between $40 billion and $50 billion over 10 years, and up to $100 billion if those immigrants were higher-paid workers,” Matthews wrote of PWBM’s finding.
Matthews notes that immigration hawks like Steven Camarota, director of research at the Center for Immigration Studies (CIS), predict as many as one million deportations per year under tough enforcement. That’s quite a reach, considering that deportations peaked at an average of 383,307 per year under former President Barack Obama. A dramatically higher target means rapidly accumulating costs, with the trillion-dollar price potentially reached after a decade.”
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“”Under current law, unauthorized workers…generally do not qualify for federal benefits,” PWBM economists point in a separate analysis. They add that “more deportations, though, leads to less economic growth.” As a result, according to PWBM, with the implementation of restrictive policies, “GDP in 2050 will be four percent lower relative to no additional deportations.”
AAF predicted that with deportations, “the labor force would shrink by 6.4 percent and, as a result, in 20 years the U.S. GDP would be almost 6 percent lower than it would be without fully enforcing current law.”
In 2017, the Center for Migrant Studies cautioned that with a mass deportation program, “gross domestic product (GDP) would be reduced by 1.4 percent in the first year, and cumulative GDP would be reduced by $4.7 trillion over 10 years.”
Obviously, there’s a range of costs projected for a policy shift to mass deportations of undocumented migrants. That’s because it has never been tried on the scale envisioned by Trump and his supporters. In fact, if Rubio is correct that the real number of people in the country in defiance of the law is “upwards of 20, 25, maybe 30 million,” deportations will have to be that much more aggressive, with an even higher price tag to match.”
“Less than 17 percent of the $1.1 trillion those laws provided for direct investments on climate, energy and infrastructure has been spent as of April, nearly two years after Biden signed the last of the statutes.”
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“Trump has said he should have the power to refuse to spend congressionally appropriated money he considers wasteful, despite a 1974 law that says otherwise. This raises the prospect that he could attempt to pare Biden-era funding even if it’s at an advanced stage of distribution.”
“There are real problems with America’s student loan system. But they mostly involve people who take on debt to pay for expensive graduate degrees.
Those problems are rooted in a little-known 2005 law that eliminated a cap on the amount of federal student loan debt that graduate students were allowed to take on. In the following decade and a half, the amount students borrowed for graduate school climbed.
Students weren’t just borrowing to pay for high-quality graduate programs. Some of the graduate programs that saw students take on the largest debt burdens were those that provided the least value in terms of quality instruction or earnings.
Graduate students, in other words, weren’t just taking on more debt. They were taking on more debt for less lucrative degrees, offered by programs eager to absorb federal loan dollars. Even as undergraduate degrees largely held their value, a bevy of newly subsidized graduate degrees have lured students into expensive programs of dubious quality.”
“While some nations tremble at the thought of high indebtedness, we Americans bask in the warm, comforting glow of $34 trillion in government IOUs. Why worry about a debt crisis when everyone wants to buy U.S. debt?
Those of us who advocate fiscal prudence have been asked that question repeatedly in the past 15 years. We would point to the host of unfunded liabilities looming in our future. They would respond by pointing to the trend of declining interest rates over time. Low rates, they said, meant we should be able to handle interest payments on outstanding debt while growing the economy with smart investments. Indeed, thanks to low interest rates, payments on federal government debt as a share of GDP dropped from more than 3 percent in the early 1990s to 1.5 percent in 2021. Debt seemed cheap and manageable, so why worry?
As the 10-year Treasury rate hit 5 percent this year, with interest payments on the debt rapidly increasing and bondholders’ interest in buying U.S. debt declining, it’s tempting for us fiscal hawks to simply say, “We told you so.” But it’s more productive to understand how we ended up in this quagmire, in hopes of avoiding similar mistakes in the future.”