New legislation aimed at buffering potentially weak federal funding for transportation infrastructure could add a one-time $30 billion boost.
U.S. senators Jim Talent, R-Mo., and Ron Wyden, D-Ore., gave an overview of the Build American Bonds legislation during a press conference yesterday.
If approved by Congress and the president, the new proposal would provide a guaranteed $150 million annually for each state to build road, public transportation and rail projects as directed through the reauthorized version of the Transportation Equity Act for the 21st Century, currently under Congressional review.
The new legislation would also allow the construction of multi-state corridors, border planning and capacity improvements and intermodal connectors.
“The amount of money proposed by the administration, the House and the Senate doesn’t come close to what is needed to meet our nation’s transportation needs,” said Stephen Sandherr, chief executive of the Associated General Contractors of America. “There is great hunger around the country for better, safer roads, but little appetite in the administration or Congress to provide the needed revenue.”
The Bush administration 2006 budget proposal outlined a $284 billion funding package for the transportation industry in a reauthorized TEA-21 bill. The legislation, which provides authority for highway and transit spending, expired Sept. 30, 2003, and has operated under short-term extensions since then.
The Talent-Wyden proposal was included in last year’s Senate-approved highway reauthorization bill. Under the proposal, the federal government will float bonds in the amount of $39 billion, of which $9 billion will be invested to pay off the principle in 30 years. An annual cost of $1 billion will be needed to service the debt.
