Show us the money: shovel-ready projects set to go

By Nick Carey - Analysis

CHICAGO (Reuters) - If President-elect Barack Obama's economic stimulus plan makes it through the U.S. Congress, money designated for infrastructure could start flowing within months into scores of "shovel-ready" projects stalled due to a lack of funds.

But accessing cash is just the first step. Industry experts warned that a lasting solution to America's infrastructure problems -- an aging, congested highway system, for starters -- will take far longer to implement.

"We must save the patient first, then think about long-term strategy," said Richard Little, director at the University of Southern California's Keston Institute for Public Finance and Infrastructure Policy. "If the objective is to create jobs, we should focus on projects that are ready to go.

"But, within a year, we'll start to see demands for a comprehensive national approach to infrastructure," he added.

Before any money can be spent, however, Obama's stimulus plan -- up to $775 billion including as much as $310 billion in tax breaks for businesses and the middle class -- must make it through Congress.

A large portion would go toward infrastructure -- highways, bridges, railways -- which would make this the largest such plan since the U.S. Interstate highway system was created under President Dwight Eisenhower in the 1950s.

Obama has said he wants to sign a bill approving his plan shortly after taking office on January 20.

As the Democrats are a few votes short of the 60 required in the 100-seat Senate to advance legislation, the Republicans could slow passage of the bill and have raised concerns about waste, warning the cost could reach $1 trillion.