Could the federal infrastructure bill encourage municipalities to sell off their sewer systems?

David Dayen, the executive editor of The American Prospect, was on Krystal Ball and Saagar Enjeti’s Breaking Points podcast in which he claims private equity is hijacking the bipartisan federal infrastructure plan.

One of his examples is that the infrastructure bill includes language that would encourage municipalities to sell off their existing infrastructure to pay for new infrastructure (and receive a contribution towards the cost of the new infrastructure from the federal government). Dayne refers to this as infrastructure recycling. He then goes through what happens when a public sewer system is sold, such as rate hikes.

As reported, the Borough of Conshohocken recently considered and decided against selling its sewer system to pay for road and stormwater system repairs.

Could an incentive from the federal government push Conshohocken and other municipalities who have decided against selling off or lease their assets to reconsider?

Just something to be aware of in the near future.