In the News

Congressman Gerry Connolly today introduced legislation to reinstate the Build America Bonds program to help state and local governments finance infrastructure improvements, including roads, transit, water systems, hospitals, and bricks and mortar projects, and create private-sector jobs.

Connolly’s legislation – H.R. 11 – would revive for two years the highly-successful bond program that expired at the end of 2010.  Connolly noted that the public dollars invested in the bonds don’t reflect the actual value of the bonds, which are leveraged with private-sector funds to provide as much as 40 times their face value for infrastructure funding, and to create jobs.

The bill has the support of business, the construction industry, state and local governments, and the administration.  Time Magazine called the program “one of the economic recovery effort’s biggest successes,” while the Wall Street Journal labeled the program a “success story.”

During 2009 and 2010, the bonds authorized under the program helped states and local communities invest in $181 billion in infrastructure projects across the country and put tens of thousands of Americans to work.  The Commonwealth of Virginia and Virginia counties, cities, and towns issued 45 Build America Bonds which leveraged more than $3.8 billion in capital for infrastructure improvements around the state for transit, schools, water systems, sewers, and other capital projects.

Northern Virginia jurisdictions issued 11 bonds, totaling $561 million for improvements to schools, transit systems, utilities, schools, and other public projects.  Connolly said the program was used in Prince William County to raise $11 million for public improvements, while Fairfax County issued three bonds totaling $349 million.  A local sewage authority also issued a bond for $80 million in sewer improvements.

“It is a win-win situation for the Commonwealth, for the American people and for the future of our nation, which must maintain a strong and solid infrastructure to grow our economy.  Experts and observers point out that Build America Bonds have lowered borrowing costs for state and local governments.  They also point out that the program has helped revive the struggling bond market and, more importantly, the bonds have clearly been a success as a means of stimulating the economy,” Connolly said.

“This is an incredibly efficient and cost-effective means of repairing our crumbling infrastructure,” he said.

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Here are some details on support for the Build America Bonds program:

• Build America Bonds are a top priority for the U.S. Conference of Mayors; the National Association of Counties; National League of Cities; National Association of State Treasurers; Council of State Governments; and National Association of State Auditors, Comptrollers, and Treasurers.
• Janet Kavinoky, of the U.S. Chamber of Commerce, said: "The bonds have done a lot of good for communities who have not had the capacity to keep infrastructure projects going."
• Brian Turmail, of the Associated General Contractors of America, said:"This is a key part of addressing what we consider to be pretty significant infrastructure challenges that our nation is facing and will, long-term, undermine our economic competitiveness."