Before the bond program expired in 2010, by comparison, only about $180 billion in bonds were issued.
Build America Bonds were created in 2009 as part of that year’s stimulus package. The program gave states and municipalities the ability to issue new taxpayer-backed bonds to raise revenue. Local jurisdictions then received subsidies from the federal government to help cover the interest on the bonds.
The bonds were designed to lower the cost that local governments faced in borrowing money to pay for infrastructure projects while spurring private sector investment.
“They can be a significant way of incentivizing private capital into our infrastructure,” said Republican Sen. Michael Crap of Idaho, the ranking member on the Senate Finance Committee.