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Senators float revamped Obama-era bond program to pay for infrastructure


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. ....

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Supporters hope for Build America Bonds revival in infrastructure plan


POLITICO
Supporters hope for Build America Bonds revival in infrastructure plan
It won’t likely be hard to find buyers for the program, designed to leverage increasing amounts of private funding for public works via taxable municipal debt.
House Ways and Means Chair Richard Neal listed BABs among his own priorities for the infrastructure plan earlier this month. | Jessica Hill/AP Photo
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The push to revive the federally subsidized Build America Bonds program as part of massive infrastructure legislation has investors and issuers champing at the bit.
Their appetite for the bonds, or BABs, was immense when they were briefly issued more than a decade ago by states, cities and local governments unable to finance their projects at reasonable rates during the Great Recession. ....

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