NEW YORK CITY—On Saturday, Gary Cohn, the chief economic advisor to President Donald Trump, announced an infrastructure and public-private partnership proposal. The plan hopes for $200 billion in federal government dollars, and $1 trillion in private spending and from state and local coffers for the administration's infrastructure plan, according to the Washington Post.

The passage of such a law will face certain challenges as some members of Congress have voiced hesitancy about spending $1 trillion on infrastructure, with the deficit increase anticipated from the tax reform bill.

Gregory Hummel, a partner at the law firm of Bryan Cave, who focuses on real estate and public finance projects, defines public-private partnerships, also called PPP, P3 or 3P, as long-term cooperative arrangements between entities in the public and private sectors.