Already cash-strapped states and cities are concerned President Donald Trump’s plans for $1 trillion worth of infrastructure projects will rely too heavily on them for financing.

Some states and groups representing them say a hike in direct federal funds is needed, as locals have already been raising fuel taxes and other fees to cover transportation needs.

They’re concerned with White House plans to cut hundreds of millions of dollars in federal grants for roads, rail, transit, water and sewer, trash, and various port projects. They’re also worried about lingering talk in Washington of eliminating the federal tax exemption for municipal bond interest.

Pointing to tight state budgets, the National Governors Association, the U.S. Conference of Mayors, and other lobbying groups are pushing for additional money for infrastructure, private-public partnerships, and a continuation of the tax exemption on municipal bond interest.

“Stated simply, state and local governments will want to preserve the existing rule for tax exemption of municipal bond interest because to eliminate it would increase the cost of borrowing,” Charles Henck, an attorney and partner in the Washington office of Ballard Spahr LLP who specializes in tax matters, told Bloomberg BNA.

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