[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
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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.
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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.
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