[Congressional Record Volume 140, Number 138 (Wednesday, September 28, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 28, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              THE NATIONAL INFRASTRUCTURE DEVELOPMENT ACT

  The SPEAKER pro tempore (Mr. Scott). Under a previous order of the 
House, the gentlewoman from Connecticut [Ms. DeLauro] is recognized for 
5 minutes.
  Ms. DeLAURO. Mr. Speaker, I rise this evening to address the state of 
our economy and to outline innovative new legislation to build our 
infrastructure and create jobs. Over the past 2 years we have witnessed 
an upturn in our national economy. Under the strong leadership of the 
Clinton administration, 3\1/2\ million new private sector jobs were 
created in the past 18 months.
  Despite this upturn in our national economic fortune, there are 
regions of the Nation where continued efforts to create new jobs remain 
imperative. In my home State of Connecticut, despite a declining 
unemployment rate in the past year, the threat of future layoffs looms 
large as defense downsizing continues. People remain concerned about 
job security and the ripple effect it can have on a community. The need 
to train workers and create new jobs is as great today as it has ever 
been.
  At the same time, the infrastructure American business needs to 
maintain a competitive edge in the world economy is aging. Our Nation's 
roads, bridges, sewers, and airports demand almost $70 billion for 
repair or replacement each year. And according to recent estimates from 
the Department of Transportation, the combination of State and Federal 
funds available for infrastructure leave an almost $30 billion 
shortfall each year. This shortfall will become a growing burden on 
American industry, as it finds its means of transporting goods limited 
and its domestic and international trade increasingly costly.
  For years it has been known that investments in our infrastructure 
have the added benefit of creating good jobs. Combining a strategy to 
address both of these pressing priorities is not novel. But today I 
have introduced legislation that seeks to remedy both problems through 
a limited public investment.
  I am joined in this effort by our majority leader, the gentleman from 
Missouri [Mr. Gephardt], who has worked tirelessly in this body to 
create jobs for working Americans.
  This legislation, the National Infrastructure Development Act, would 
create as many as 250,000 new jobs each year by leveraging a limited 
public investment in infrastructure to attract significant additional 
private capital funds.
  The bill is designed to be particularly attractive to the pension 
community and other institutional investors. These investors represent 
$4.5 trillion in investment potential. For infrastructure, this is a 
vast investment opportunity. Evidence of the attractiveness 
of investment in infrastructure is easy to find. Earlier this year an 
80-member delegation of pension managers traveled to China to 
investigate infrastructure investment opportunities there. And they 
liked what they saw. We must make it attractive for these funds to 
invest in America.
  The bill creates a Government-sponsored corporation, the National 
Infrastructure Corporation--or NIC--which would be funded by an initial 
$1 billion Government investment for 3 years. Its mission would be to 
invest in and insure infrastructure and environmental projects that 
will generate revenues. Construction or repair of toll roads, airports, 
bridges, sewage treatment facilities, and clean water projects are 
potential investments.
  By lending or insuring funds to municipalities or States with 
projects like these, the NIC would allow pension funds to strengthen 
their investments while helping us strengthen our economy. And over 
time, the NIC itself would become an attractive investment for the 
pension community. Private investors could eventually buy the 
Corporation from the Federal Government, repaying the taxpayers' 
original investment.
  In addition, the bill would create something called the public 
benefit bond. The bill would allow cities and States to offer bonds to 
pension funds for use in infrastructure construction. Under the public 
benefit bond, these investments would be attractive to pension funds 
because it allows them to pass on tax benefits to their pensioners.
  What this bill does not do is end traditional means of funding our 
road construction. It does not replace the need for Federal or State 
assistance to highway and mass transit programs. Instead, it offers a 
new method of filling the $30 billion annual shortfall that has been 
projected for these projects. The NIC will supplement, not supplant, 
traditional methods of financing our infrastructure development. 
Investment from NIC will allow States and municipal governments to use 
existing formula and grant funds for other projects of importance.
  Who benefits from this approach? We all do. First and foremost, 
American workers will benefit from this new twist in an old concept of 
job creation. Under traditional Government transportation investment 
programs, every $1 billion the Federal Government invests creates 
30,000 to 50,000 new jobs. Under the National Infrastructure 
Development Act, every $1 in Federal investment will result in $10 of 
actual construction. So each $1 billion in Federal investment will 
create 250,000 to 450,000 jobs.
  American business benefits. The reliable airports, roads, and other 
means of transportation vital to the movement in goods in an 
international economy become more secure, assuring continued growth. 
The taxpayer benefits from better modes of transportation for fewer tax 
dollars. Pension investors benefit because they can look to American 
opportunities to invest their pension dollar instead of China.
  Mr. Speaker, I introduced the National Infrastructure Development Act 
because as a member of the Appropriations Committee I understand all 
too well that the Federal dollars are increasingly limited. I 
understand that in order for Government to accomplish its goals we will 
need to find new methods of getting the job done. I believe by making 
it more attractive for private investors to engage in the rebuilding of 
America we will be forging a vital partnership--one that will help us 
create new jobs and good investments, and rebuild our aging 
infrastructure.
  I believe that this bill represents ideas that will be attractive to 
my colleagues on both sides of the aisle and it is my hope to work with 
Democrats and Republicans to see this legislation actively considered 
in the next session of Congress.
  Mr. GEPHARDT. Mr. Speaker, I am pleased to join Congresswoman DeLauro 
in cosponsoring the National Infrastructure Development Act of 1994.
  The purpose of the National Infrastructure Development Act is to 
increase the public works investment so critical to sustaining our 
long-term economic growth. Good roads, airports, transportation 
networks, sewer systems, and other public works have been recognized as 
necessary for strong productivity growth.
  Over the past 2 years, the Clinton administration and the Congress 
have made tough choices to reduce the Federal budget deficit. While we 
have made historic progress in rekindling sustainable economic growth, 
our rate of investment in public works remains well below the level 
believed necessary for optimal economic growth.
  During the 1980's, real Federal investment in infrastructure fell 16 
percent. As the Federal Government reduced its investment, greater 
burdens fell on the States and municipalities. And many of them--not 
just inner cities or small towns but suburbs as well--have been unable 
to meet their needs.
  As investment has lagged and our public works have aged, their 
contribution to our economy has diminished. Traffic congestion, for 
example, now costs drivers in our largest cities over $40 billion per 
year in lost time and wasted gasoline.
  It is not just the economic effects that the American people see so 
plainly. In Missouri, failing septic systems have left raw sewage 
standing in our streets and gutters: local sewer districts are unable 
to afford even basic improvements. Long-promised road improvements have 
gone unfulfilled--leaving our county roads with accident and fatality 
rates substantially higher than the national average.
  While we have made some improvements in recent years, numerous 
studies document the need for additional public investment. Bringing 
our bridges and highways up to current safety standards would require a 
doubling of the current highway program. The backlog of sewage projects 
totals over $200 billion. Last year, the Bipartisan Commission to 
Promote Investment in America's Infrastructure reported that America's 
investment shortfall in its infrastructure totals between $40 and $80 
billion per year.
  The Federal Government must lead the way with new resources. Our 
strategy should recognize also that many States are more capable and 
sophisticated than they were in the past. New methods of financing may 
be both necessary and possible.
  The Natural Infrastructure Development Act establishes an innovative, 
investment-oriented Federal infrastructure strategy to help States and 
municipal governments finance needed infrastructure. Specifically, it 
establishes a National Infrastructure Corporation to provide a broad 
array of financing to projects capable of providing an economic return. 
These would include projects like toll roads and bridges, wastewater 
and drinking water treatment plants, and airports.
  By leveraging private and other public sector monies, the Corporation 
would substantially increase the amount of infrastructure created by 
each federal public works dollar. Experts estimate that the Corporation 
could leverage $10 or more in private investment for every $1 it 
receives from the Federal Government. Under this legislation, the 
corporation's capitalization would be $3 billion. It is anticipated 
that this could support up to $30 billion in new project work, 
generating between 675,000 and 900,000 new jobs.
  Congresswoman DeLauro has proposed an innovative mechanism to address 
a difficult problem. It is my hope that we can move forward in 
promoting additional public works investment in the next Congress. This 
legislation makes a valuable contribution to understanding the issues 
and attaining this goal.

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