[Congressional Record Volume 155, Number 8 (Wednesday, January 14, 2009)]
[Senate]
[Page S390]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself, Mr. Thune, Ms. Klobuchar, and Ms. 
        Collins):
  S. 238. A bill to provide $50 billion 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.
  Congress is working with President-Elect Obama on an economic 
stimulus package that will probably include funding for ``shovel-
ready'' transportation projects. But even that won't come close to 
rehabilitating our Nation's transportation infrastructure.
  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 i 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's 
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 later this 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 millions of workers 
losing their jobs, stagnating wages, the loss of even basic health 
benefits for many, and a mortgage market that is spiraling downward, 
the American economy desperately needs a shot in the arm.
  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's a chance for the Federal 
Government to hold up its end of the bargain with our States.
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