The formation of the proposed Advisory Council on Infrastructure is part of an executive order Trump signed in July.
The council would have consisted of representatives from construction, real estate and transportation sectors if the administration had moved forward with the plan.
The announcement came a day after the president dissolved the American Manufacturing Council and the Strategic and Policy Forum.
Prior to the disbandment of the two business councils, several member CEOs decided to leave in response to Trumpâs remarks on violence and race relations following a white-supremacist rally in Charlottesville, Virginia.