In an effort to fund much needed new transportation construction and repair of the nation’s aging roads, rail lines and bridges, U.S. Senator Susan Collins and Senators Ron Wyden (D-OR), John Thune (R-SD), Norm Coleman (R-MN), Amy Klobuchar (D-MN), Elizabeth Dole (R-NC), and David Vitter (R-LA) have introduced the bipartisan “Build America Bonds” Act.
By providing $50 billion in additional Federal transportation funding, they say Build America Bonds will empower all states to complete critical infrastructure projects.
The funding from this one-time federal bonding program – which has the potential to create 2.5 million jobs, while saving countless lives – would be in addition to the dollars states receive through the existing Federal Transportation program.
“I believe this legislation will provide a much needed boost to America’s transportation infrastructure, and I am pleased to cosponsor the Build America Bonds Act,” said Senator Collins. “Improving our transportation infrastructure is a critical issue not only in Maine, but also nationwide. Our transportation system is the lifeblood of economic development, the catalyst for thousands of good jobs. This legislation will not only provide states and communities with vital funding for transportation infrastructure projects, but it will also go a long way toward fostering economic growth.”
Build America Bonds would be available to corporate and individual investors for purchase in different denominations, so that all Americans can have the opportunity to support upgrading America’s transportation infrastructure. The Act ensures that money will be distributed in an equitable manner by requiring that each state receive at least 1 percent of the funds.
The U.S. Department of Transportation estimates that for every $1 billion in new transportation funding nearly 50,000 jobs created and an estimated $5.7 billion in economic activity is generated. In addition to creating jobs and roughly $285 billion in economic activity, the $50 billion infusion of cash from Build America Bonds can be applied to projects on all modes of transportation including roads, rail, ports, waterways and transit.
This legislation is supported by a diverse group of business, labor and transportation infrastructure associations including: Associated General Contractors of America (AGC); American Association of State Highway and Transportation Officials (AASHTO); U.S. Chamber of Commerce; National Association of Manufacturers; National Construction Alliance – a coalition of the Laborers, Carpenters and Operating Engineers Unions; American Highway Users Alliance; and many others.
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