AASHTO Journal, 28 June 2013
Four members of Congress joined forces on Thursday to introduce a measure that would allocate $50 billion to the Transportation and Regional Infrastructure Project (TRIP) bonds program, allowing state transportation departments to leverage private investment to help fund upgrades to the nation’s transportation infrastructure.
The bipartisan measure was introduced by Sen. Ron Wyden (D-OR), Sen. John Hoeven (R-ND), Rep. Allyson Schwartz (D-PA), and Rep. Ed Whitfield (R-KY) and would make available up to $50 billion ($1 billion per state) in bonds over a six-year span for transportation infrastructure projects. The principal amount of the bonds would then be covered by a state match put into a trust fund and invested for the life of the bonds. In place of interest payments, bondholders would then get federal tax credits that could be applied against federal income tax liabilities.
“America’s economic future depends on expanding, maintaining and repairing its infrastructure,” Wyden said in a statement. “TRIP bonds provide an innovative, effective and low-cost way to help states improve our infrastructure by leveraging private funding.”
Several industry leaders have come out in support of the plan.
“Given the tremendous transportation investment needs facing our country, TRIP bonds provide supplemental project financing capacity directly to those who construct and manage transportation facilities—the states and their transportation agencies,” said Bud Wright, AASHTO executive director. “We applaud Sen. Wyden, Sen. Hoeven, Rep. Whitfield, and Rep. Schwartz for their bipartisan, bicameral support for transportation infrastructure improvements that underpin economic growth and quality of life for all Americans.”
Additional information on the measure is available here.