[Congressional Record Volume 153, Number 131 (Thursday, September 6, 2007)]
[Senate]
[Pages S11215-S11216]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. WYDEN (for himself, Mr. Thune, Mr. Coleman, Ms. Klobuchar,
Mrs. Dole, Mr. Vitter, and Ms. Collins):
S. 2021. A bill to provide $50,000,000,000 in new transportation
infrastructure funding through bonding to empower States and local
governments to complete significant infrastructure projects across all
modes of transportation, including roads, bridges, rail and transit
systems, ports, and inland waterways, and for other purposes; to the
Committee on Finance.
Mr. WYDEN. Mr. President, despite the record transportation funding
that Congress provided in the 2005 Transportation Reauthorization bill,
SAFETEA-LU, our Nation's infrastructure is being stressed to the
breaking point. Our ports and rail lines are at or near capacity. Our
highways are clogged. The tragedy in Minneapolis last month showed the
entire country that our bridges are in desperate need of repair.
The American Society of Civil Engineers has noted that over the next
5 years $1.6 trillion in investment is needed from all levels of
government to keep our Nation's current transportation system up to
date. To put that into perspective, our Nation's infrastructure needs
roughly six times as much funding as was included in SAFETEA-LU.
The question is ``Where do we find the transportation funding that
our country needs to meet our transportation and our economic needs?''
Senator Thune's and my answer is to invest in America.
Everyone agrees that our country's infrastructure needs are
tremendous. Everyone agrees that our country needs to invest more in
transportation. What Congress hasn't been able to agree on is where to
find the money. Gas taxes just don't generate enough revenues to even
begin to satisfy highway and transit needs.
In this budget climate, pots of extra Federal money are not just
sitting around waiting to be used, and States surely don't have any
extra money either. Most have budget deficits. All the conventional
funding sources are coming up short, so Senator Thune and I think it is
time to think outside the box and outside the trust funds. The Federal
Government is about the only entity in the country that does not borrow
money for capital projects, but in this climate it should and it must.
Senator Thune and I have come up with a creative approach to provide
$50 billion of additional new funding for transportation projects our
country desperately needs by issuing Build America Bonds. Our country's
needs are so great that we think funding should be made available that
is in addition to SAFETEA-LU.
Our legislation is not a substitute for fixing the transportation
trust fund. We still must address that problem, and next year we must
start on a new transportation bill. Our legislation is meant to provide
extra money on top of regular transportation funding.
This money could not be earmarked by Congress. This will not fund any
Senator's pet project. This money will be controlled by the States, and
used for the projects they think are most critical.
An annual amount of approximately $500 million from trade fees will
be placed in an Infrastructure Finance Account and invested for the
life of the bonds, which will generate more than enough to repay the
entire $50 billion principal amount.
That means the only cost to the Government is the ``interest
portion'' on the bonds, which is in the form of tax credits. With this
funding mechanism, as little as $2 billion a year could generate the
$50 billion in funding for transportation infrastructure. I call that a
very smart investment in our country's infrastructure.
This investment is badly needed.
Citizens stuck in traffic choking on exhaust need relief. Truckers
who need to detour miles out of their way to avoid weight-limited
bridges need relief. As our economy struggles with stagnating wages,
the loss of even basic health benefits for many, and a mortgage market
that is spiraling downward, the American worker needs relief.
[[Page S11216]]
The U.S. Department of Transportation estimates that each $1 billion
of funding for transportation directly produces nearly 50,000 jobs. So
under the Wyden/Thune proposal the $50 billion of new transportation
funding will provide critical economic stimulus that will create up to
2.5 million family wage jobs.
This is an economic stimulus idea that will generate more funding for
the economy now. It will create jobs. It is a chance for the Federal
Government to hold up its end of the bargain with our States.
Mr. THUNE. Mr. President, today, Senator Wyden and I are introducing
an important piece of legislation that seeks to address the significant
transportation infrastructure needs that exist across the country. The
Build America Bonds Act would provide $50 billion in infrastructure
investment for all states across the country.
This legislation is a slightly modified version of bills that Senator
Wyden and others advocated in previous Congresses. While the Federal
Government has allocated record funding levels to States under the
Transportation reauthorization bill that Congress passed in 2005, the
need for infrastructure improvements far exceeds available Federal and
State funding sources.
For instance, the American Society of Civil Engineers has noted that
over the next 5 years, $1.6 trillion in investment is needed from all
levels of government to keep our Nation's current transportation system
up to date. To put this into perspective, this funding level is roughly
six times larger than what is currently being spent.
Our legislation, the Build America Bonds Act, is not intended to
replace the current user-fee structure the highway trust fund relies on
today--it would be a supplemental funding stream that would allow
States to address the backlog of important highway, bridge, rail, and
waterway projects that exist in every State across the country.
The funding under our legislation would not be earmarked by
Congress--it would be distributed directly to States. Further, this
much needed funding would create over 2 million jobs, spur significant
economic growth, save lives by making much needed improvements to
transportation problems that exist from coast to coast and keep our
economy moving.
Our legislation is cosponsored by Senators Coleman, Klobuchar, Dole,
Vitter, and Collins. In addition, the Build America Bonds Act enjoys
the broad support of a diverse group of business, labor and
transportation groups, 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, NAM; National Construction Alliance--a coalition of the
Laborers, Carpenters, and Operating Engineers Unions; American Highway
Users Alliance; and many others.
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