Noem: Getting Infrastructure on the Right Track

Statement

Recently, I had the opportunity to meet with employees of the Rapid City, Pierre and Eastern Railroad (RCP&E) in Huron. In many respects, these individuals lay the groundwork for our state's economic prosperity.

In South Dakota, we have more than 1,800 miles of operational railroad lines, over which roughly half of our agriculture commodities travel. When hiccups occur, farmers often feel the impact immediately in the form of an increased basis. If backups or delays are bad enough, the state's entire farm economy can be impacted, especially if prices are low and producers have little wiggle room financially. It's critical, then, that we make the investments necessary to upgrade and maintain our nation's network of railroads.

Like many features of America's infrastructure system, the country's railways are aging. Private American companies, however, have made significant investments to repair and modernize lines. From a policy perspective, these are investments I want to incentivize.

One way to do that is through the Short Line Tax Credit, which generally offers a $1 benefit for every $2 of private investment. First enacted in 2005, the credit has helped spark $4 billion worth of private investment by regional railroads, including millions of dollars in South Dakota.

In fact, the American Short Line and Regional Railroad Association has held South Dakota up as an example of the credit's effectiveness. They write: "the improvements made by the 670-mile Rapid City, Pierre & Eastern Railroad since it began operations in 2015 have already attracted over $311 million in new facility investments by six South Dakota companies. Those facilities employ 260 workers. This result is being duplicated in the 49 states that are served by America's 603 short line railroads."

But the credit expired in 2017. In response, I've cosponsored legislation to make the tax credit permanent and will fight to include that proposal in an upcoming tax package.

Additionally, I've been thrilled to see President Trump's elimination of more than 1,600 unnecessary regulations, accelerating the pace at which developers can work. These same deregulation principles guided much of my advocacy in 2015, when we passed the first fully funded transportation bill in a decade and got it signed into law. The legislation cut red tape, streamlined rail project approvals, and increased support for highway-railway grade crossings.

But more can be done. President Trump has laid out an impressive infrastructure agenda to modernize our roads, bridges, and rails. More specifically, the president's plan prioritizes investments in rural America, further reduces the regulatory burden, and puts a renewed focus on the skills training needed to fill construction jobs.

Much of South Dakota's economy couldn't operate without a robust railroad infrastructure. Thank you to all those who work so hard to move our commodities and goods efficiently, safely, and affordably.

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