The US Vice Presidential nominees: a tale of two infrastructure policies?

J.D. Vance (R-OH) began his career in the US Marine Corps, and later moved into the tech industry. A relative newcomer to politics, he was elected as a senator in Ohio in 2022. Initially a critic of Donald Trump, he eventually developed strong support for the former president’s politics. Since taking up his role in Congress, Vance has continually supported the oil and gas industry, as well as homegrown manufacturing.

By contrast, Tim Walz (D-MN) is a teacher and military veteran, hailing from Nebraska. He turned to politics in 2007, where he has displayed a strong background in infrastructure since taking office as Governor of Minnesota in 2019. His infrastructure policies have focused on several key areas, including transportation, broadband, climate change, and sustainability. Most recently, he proposed a $982m package aimed at modernizing Minnesota’s infrastructure. 

Where do these candidates stand on the following infrastructure issues?

Energy and climate change 

Vance, the Senator from the Buckeye State has been critical of clean energy initiatives that he believes could harm traditional industries and jobs. He has called for repealing much of the Inflation Reduction Act and has been a vocal supporter of extending oil and gas production – particularly fracking. While Vance’s position on climate change has shifted somewhat, initially acknowledging the problem and supporting solar energy, by 2022 he expressed scepticism about manmade climate change, and has expressed opposition to windfarms.

Vance advocated for streamlining permitting for fossil fuel projects when he co-sponsored the ‘Power Act’, in 2023. The act would require the president to seek Congressional approval before any action to delay the leasing or permitting for oil, gas and mining on federal territory. Additionally, he co-sponsored a measure last year to overturn the suspension on Chinese solar components.

In contrast, Walz, the Governor of Minnesota, has emphasized integrating climate resilience into infrastructure planning. He has supported green infrastructure projects, such as stormwater management systems designed to handle increased rainfall and prevent flooding. As recently as June 2024, he signed a law designed to streamline permitting of renewable electricity projects.

Broadband

On the issue of broadband, Vance has demonstrated a willingness to reach across the aisle, co-sponsoring a bill with Senator Ben Ray Luján (D-NM) to provide funds for the Federal Communications Commission’s Affordable Connectivity Program, which aimed to deliver secure and affordable broadband access. This suggests his support for broadband roll-out and possible reticence to cut back on the already present Broadband Equity Access and Deployment Program.

Walz on the other hand, has championed the Border-to-Border Broadband Grant Program, which aims to close the digital divide by providing grants to Internet service providers. Through this initiative, Walz has advocated for federal and state funding to incentivize partnerships with private companies to expand broadband access across rural and underserved areas in Minnesota.

Transportation infrastructure

Vance has closely aligned his rhetoric on fossil fuels with transportation infrastructure. He introduced the ‘Drive American Act’, which would repeal over $100 billion in existing federal tax credits for EVs with the aim to styme their overseas production, instead offering tax credits for US-manufactured gas and diesel vehicles.

Governor Walz of the North Star State proposed a $7.8bn transportation infrastructure package in 2020, which aimed at modernizing Minnesota's roads, bridges, and transit systems. This package included funding for repairing and replacing aging infrastructure, improving road safety, and expanding public transit options. The same year, Walz signed a significant bonding bill that allocated $1.9bn for various infrastructure projects. This bill was designed to support road and bridge repairs, state office buildings, and local government infrastructure needs.

Of particular interest to infrastructure investors has been Walz’s endorsement of the Minnesota Department of Transportation's Public-Private Partnership project for the I-494/I-94 interchange in the Twin Cities - an example of his administration’s openness and support for P3s to undertake large scale infrastructure projects.

A contrasting picture and what this means for investors

Overall, the two candidates present a stark contrast in their approach to infrastructure and energy, particularly around renewables and more traditional oil and gas industries. Both candidates are emblematic of their parties’ policies, and shed further light on probable future infrastructure policies if their party were to win.

If Democrats are successful, the huge Biden-era investments, namely the Bipartisan Infrastructure Law and Inflation Reduction Act, will continue to be supported by a Harris-Walz administration. If Republicans win, there will be a push to undo federal funding, favor tax breaks to businesses – particularly from traditional fossil-fuel industries – place tariffs on components critical to the solar industry, and end offshore wind projects. Whilst undoing federal funding will come with its challenges given the tight majorities expected in a new Congress, there is a trend across the American infrastructure sector towards accelerating talks on late-stage deals, and securing current conditions while withholding discussions that are less advanced.

As a governor, Walz may have a clearer record than Vance on infrastructure, however, both candidates display crossovers in touting the benefits of streamlined permitting, albeit for vastly different energy projects. Similarly, they have both displayed support for rolling out fast and affordable broadband, which shows the importance they attribute to a digitally connected America. However, Vance and Walz’s biggest commonality are their rural Midwestern background – something both candidates stressed in their convention speeches – which demonstrates how Trump and Harris view the importance of winning Middle America in securing their path to the White House.