[Congressional Record Volume 142, Number 44 (Wednesday, March 27, 1996)]
[House]
[Pages H2932-H2934]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REINTRODUCTION OF THE NATIONAL INFRASTRUCTURE DEVELOPMENT ACT OF 1996

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Hawaii [Mr. Abercrombie] is recognized for 5 minutes.
  Mr. ABERCROMBIE. Mr. Speaker, I yield to the gentlewoman from 
Connecticut [Ms. DeLauro].
  Ms. DeLAURO. Mr. Speaker, I thank the gentleman from Hawaii for 
yielding.
  Mr. Speaker, today I am reintroducing the National Infrastructure 
Development Act, which I first introduced at the end of the 103rd 
Congress. This bill will create more than 250,000 jobs, and help mend 
our Nation's crumbling infrastructure. I am pleased to be joined by 
Democratic Leaders Dick Gephardt, Vic Fazio, and David Bonior, who have 
lead countless job creation efforts in this country. During this time 
of debate over the role of our Federal Government, I am proud to bring 
a bill to the floor which shows that Government can work for America.
  At a time when jobs are disappearing and when we face intense 
international

[[Page H2933]]

competition from abroad we badly need to create new jobs and make the 
investments in our roads, bridges, airports, and sewers to make our 
Nation more competitive.
  I want to remind Americans that since the election of President 
Clinton, the economy has continued to grow. Nearly 8 million jobs were 
created since his election; the unemployment rate has fallen from 7.3 
percent to 5.5 percent; and, the Federal deficit has been cut in half--
reducing interest rates and increasing purchasing power.
  Yet, despite this good economic news, there are too many regions of 
the country where job growth remains slow, wages are stagnant, and 
people are hurting financially. Although the unemployment rate 
continues to decline in my home State of Connecticut, the continued 
threat of job loss is damaging the economic security of many families. 
The Federal Government must help identify new markets, and expand job 
opportunities for these hardworking Americans.
  The National Infrastructure Development Act meets the needs of 
America by providing the financing mechanism needed to construct roads, 
bridges, sewers, schools, and airports. My bill works by leveraging a 
limited public investment in infrastructure to attract private capital 
investors. In particular, this legislation targets the pension 
community and other institutional investors. Together, these investors 
represent $4.5 trillion in investment potential.
  Investments in infrastructure create good, high paying jobs, and 
enable businesses to perform at full capacity. With a small Federal 
investment, the National Infrastructure Development Act will improve 
our nation's infrastructure and create 250,000 jobs.
  A public investment in infrastructure will succeed in spurring 
private sector investments. As evidence, we are already seeing private 
sector investors beginning to finance major infrastructure projects, 
such as toll roads. Further, a number of American pension plans are 
looking overseas to countries like China, where infrastructure 
investment is common. The United States must make private sector 
infrastructure investments even more attractive in this country.
  My bill will make domestic infrastructure investments more attractive 
by investing in and insuring infrastructure projects through a 
government sponsored corporation. The National Infrastructure 
Corporation--or NIC--would be funded by an annual $1 billion government 
investment over a 3-year period. Construction or repair of schools, 
toll roads, airports, bridges, sewage treatment facilities, and clean-
water projects are potential NIC investments.
  Municipalities and states could borrow from the NIC, or be insured by 
the NIC for infrastructure projects. These projects would be sound 
investments for pension funds. In return, these investments would 
strengthen the U.S. economy, and improve our Nation's infrastructure. 
Over time, the NIC itself would be a solid investment for pension 
funds. The goal of this legislation is for private investors to 
eventually buy the Corporation from the Federal Government, repaying 
the taxpayer's original investment.
  In addition, my bill would enable cities or states to offer bonds to 
pension funds for infrastructure construction. These bonds, called 
Public Benefit Bonds, would be attractive investments for pension funds 
because the bonds enable them to pass on tax benefits to their 
pensions.
  To be clear, the National Infrastructure Development Act is not 
intended to replace the traditional means of funding infrastructure 
projects. Federal and State assistance will still be needed to fund 
highways and mass transit projects, sewers, and other infrastructure 
projects. My bill in only intended to meet the projected $30 billion 
annual shortfall of funds that are available for infrastructure 
projects. The NIC will supplement, not supplant, traditional methods of 
financing domestic infrastructure development.

  Investments through the NIC will enable states to make better use of 
Federal funds they currently receive for these projects by using a 
small Federal investment to leverage large private investments. More 
infrastructure will be funded as a result of this legislation.
  The National Infrastructure Development Act builds on President 
Clinton's goals for improving this Nation's infrastructure. The 
administration has enabled 32 States to construct 70 projects using a 
variety of innovative financing techniques. In addition, the Department 
of Transportation is completing a competition for 11 States to be able 
to establish State infrastructure banks that have a function similar to 
the National Infrastructure Corporation. Fifteen States entered this 
competition, and another 5 States wrote to express interest in entering 
future competitions.
  This Congress has already given its approval of these efforts. The 
fact that so many States are looking for innovative financing methods 
should send a clear signal to this Congress that we must do more to 
meet these national infrastructure needs. The National Infrastructure 
Development achieves this objective.
  This is a good government bill that benefits every American.
  American workers benefit through good jobs. Under traditional 
government transportation and infrastructure investment programs, every 
billion dollars invested creates 35,000 to 50,000 new jobs. Under my 
bill, every dollar in Federal investment will result in $10 of actual 
construction. So each billion dollars in Federal investment will create 
240,000 to 450,000 new jobs.
  American businesses benefit from reliable infrastructure. Businesses 
depend on airports, roads, wastewater treatment facilities, and clean 
water projects. Stronger infrastructure will aid economic expansion.
  American taxpayers benefit from better modes of transportation for 
fewer tax dollars, and better environmental quality.
  Pension investors benefit because they can look for investment 
opportunities in the United States instead of overseas.
  Every Member of Congress knows that Federal resources are scarce. The 
National Infrastructure Development Act will fill a major funding gap 
with a short term, limited investment and rebuild our Nation's 
infrastructure. Private investors need to have the opportunity to 
invest in America, and the Federal Government can work in partnership 
with the private sector.
  This partnership will help us rebuild our country's aging 
infrastructure, create great jobs, and promote good investments.
  I urge my colleagues on both sides of the aisle to closely examine 
this bill. Now is the time for us to move this important piece of 
legislation.
  Mr. GEPHARDT. Mr. Speaker, I am pleased to join Congresswoman DeLauro 
in cosponsoring the National Infrastructure Development Act.
  A fundamental governmental function is to create an economic 
environment conducive to growth and the creation of new opportunities 
and good jobs. No aspect of this function is more important than 
investing in the human and physical capital of the country.
  To prosper, our country must invest in upgrading our public works and 
transportation systems. With the growing importance of high value added 
industry and just-in-time manufacturing, a strong transportation system 
is more vital to economic growth than ever. Unfortunately, we face a 
$300-billion backlog in transportation investment alone. According to 
recent studies, our national investment in transportation falls $17 
billion short of the amount needed just to maintain current levels of 
performance.
  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. The result: falling productivity and a diminished 
quality of life. People spend hours in traffic jams instead of in 
offices or at home with their families. Traffic congestion now costs 
drivers in our largest cities over $40 billion per year. And long-
promised road improvements needed to lower accident and fatality rates 
remain undelivered.
  While we have made some progress in recent years, numerous studies 
document the need for additional investment. Bringing our bridges and 
highways up to current safety standards would require a doubling of the 
current highway program. The Bipartisan Commission to Promote 
Investment in America's Infrastructure reported that America's total 
investment shortfall in its infrastructure amounts to between $40 
billion and $80 billion per year. At the same time, Federal resources 
are limited. As discretionary spending caps are lowered, the Federal 
capital investment program will come under enormous pressure.

[[Page H2934]]

  The purpose of the National Infrastructure Development Act is to 
increase the public works investment critical to our long-term economic 
growth. It does so by using innovative financing and techniques already 
used in the private secton to encourage more investment in our roads, 
bridges and transit systems.
  The National Infrastructure Development Act establishes an 
innovative, investment-oriented Foreign infrastructure strategy to help 
States and municipal governments finance needed infrastructure. In 
creates a National Infrastructure Corporation to provide a broad array 
of financing for infrastructure projects.
  The Clinton administration's innovative investment program shows that 
there is tremendous interest among States and local governments in new 
methods that would make Federal capital dollars go further. In the past 
year along, the administration has given approval to over 70 innovative 
financing projects in over 30 States. Moreover, 20 States have 
expressed interest in establishing State infrastructure banks that 
would enable them to make more created use of Federal transportation 
funds.
  While the Congress in ISTEA provided greater flexibility in our 
highway program, we have only scratched the surface of the potential. 
The recent experiences with privately-financed toll roads in California 
and Virginia and my many discussions with State officials, business 
leaders, and local leaders lead me to believe that there is a strong 
need for creative Federal leadership.
  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 
would leverage up to $10 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 generate tens of billions in new investment and hundreds of 
thousands of jobs, while eliminating hundreds of infrastructure 
bottlenecks that stifle growth.
  Congresswoman DeLauro has proposed an innovative mechanism to address 
the national problem of underinvestment in our public works. The 
legislation make a valuable contribution to understanding the issue and 
attaining this goal. I urge my colleagues to join in our effort to 
boost the Nation's public investment and productivity.
  Mr. FAZIO of California. Mr. Speaker, I rise in strong support of 
legislation creating the National Infrastructure Corporation [NIC], of 
which I am an original cosponsor.
  Today, it is estimated that there are over $30 billion in unfunded 
infrastructure projects throughout the United States. Due to increasing 
Federal, State, and local budget constraints, important infrastructure 
projects are being delayed or not considered at all. While it is clear 
that the United States is becoming increasingly a technology and 
information driven based economy, the necessity to build, repair and 
upgrade our roads, bridges, rail system, schools, and water treatment 
projects are just as important today as they ever have been.
  That is why I have joined my colleagues today to address this 
important issue. This bill established the National Infrasture 
Corporation to foster more public/private construction projects and to 
help create good jobs. The NIC will provide credit assistance in the 
form of direct loans, bond insurance, and development risk insurance 
for critically needed infrastructure projects throughout the country.
  The creation of the NIC is an innovative or smart financing mechanism 
to help augment existing Federal and State grant programs. As we in 
Congress look for better ways to leverage Federal resources, the NIC is 
a prime example of how the Federal Government can provide initial 
financial and significant in-kind resources to build new infrastructure 
and strengthen our old and outdated infrastructure.
  To that end, I look forward to working with Representative Rosa 
DeLauro to bring this legislation to the country's attention and make 
it a priority in Congress.

                          ____________________