[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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