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“REINTRODUCTION OF THE NATIONAL INFRASTRUCTURE DEVELOPMENT ACT OF 1996” mentioning the U.S. Dept. of Transportation was published in the House of Representatives section on pages H2932-H2934 on March 27, 1996.
The publication is reproduced in full below:
REINTRODUCTION OF THE NATIONAL INFRASTRUCTURE DEVELOPMENT ACT OF 1996
The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Hawaii [Mr. Abercrombie] is recognized for 5 minutes.
Mr. ABERCROMBIE. Mr. Speaker, I yield to the gentlewoman from Connecticut [Ms. DeLauro].
Ms. DeLAURO. Mr. Speaker, I thank the gentleman from Hawaii for yielding.
Mr. Speaker, today I am reintroducing the National Infrastructure Development Act, which I first introduced at the end of the 103rd Congress. This bill will create more than 250,000 jobs, and help mend our Nation's crumbling infrastructure. I am pleased to be joined by Democratic Leaders Dick Gephardt, Vic Fazio, and David Bonior, who have lead countless job creation efforts in this country. During this time of debate over the role of our Federal Government, I am proud to bring a bill to the floor which shows that Government can work for America.
At a time when jobs are disappearing and when we face intense international competition from abroad we badly need to create new jobs and make the investments in our roads, bridges, airports, and sewers to make our Nation more competitive.
I want to remind Americans that since the election of President Clinton, the economy has continued to grow. Nearly 8 million jobs were created since his election; the unemployment rate has fallen from 7.3 percent to 5.5 percent; and, the Federal deficit has been cut in half--
reducing interest rates and increasing purchasing power.
Yet, despite this good economic news, there are too many regions of the country where job growth remains slow, wages are stagnant, and people are hurting financially. Although the unemployment rate continues to decline in my home State of Connecticut, the continued threat of job loss is damaging the economic security of many families. The Federal Government must help identify new markets, and expand job opportunities for these hardworking Americans.
The National Infrastructure Development Act meets the needs of America by providing the financing mechanism needed to construct roads, bridges, sewers, schools, and airports. My bill works by leveraging a limited public investment in infrastructure to attract private capital investors. In particular, this legislation targets the pension community and other institutional investors. Together, these investors represent $4.5 trillion in investment potential.
Investments in infrastructure create good, high paying jobs, and enable businesses to perform at full capacity. With a small Federal investment, the National Infrastructure Development Act will improve our nation's infrastructure and create 250,000 jobs.
A public investment in infrastructure will succeed in spurring private sector investments. As evidence, we are already seeing private sector investors beginning to finance major infrastructure projects, such as toll roads. Further, a number of American pension plans are looking overseas to countries like China, where infrastructure investment is common. The United States must make private sector infrastructure investments even more attractive in this country.
My bill will make domestic infrastructure investments more attractive by investing in and insuring infrastructure projects through a government sponsored corporation. The National Infrastructure Corporation--or NIC--would be funded by an annual $1 billion government investment over a 3-year period. Construction or repair of schools, toll roads, airports, bridges, sewage treatment facilities, and clean-
water projects are potential NIC investments.
Municipalities and states could borrow from the NIC, or be insured by the NIC for infrastructure projects. These projects would be sound investments for pension funds. In return, these investments would strengthen the U.S. economy, and improve our Nation's infrastructure. Over time, the NIC itself would be a solid investment for pension funds. The goal of this legislation is for private investors to eventually buy the Corporation from the Federal Government, repaying the taxpayer's original investment.
In addition, my bill would enable cities or states to offer bonds to pension funds for infrastructure construction. These bonds, called Public Benefit Bonds, would be attractive investments for pension funds because the bonds enable them to pass on tax benefits to their pensions.
To be clear, the National Infrastructure Development Act is not intended to replace the traditional means of funding infrastructure projects. Federal and State assistance will still be needed to fund highways and mass transit projects, sewers, and other infrastructure projects. My bill in only intended to meet the projected $30 billion annual shortfall of funds that are available for infrastructure projects. The NIC will supplement, not supplant, traditional methods of financing domestic infrastructure development.
Investments through the NIC will enable states to make better use of Federal funds they currently receive for these projects by using a small Federal investment to leverage large private investments. More infrastructure will be funded as a result of this legislation.
The National Infrastructure Development Act builds on President Clinton's goals for improving this Nation's infrastructure. The administration has enabled 32 States to construct 70 projects using a variety of innovative financing techniques. In addition, the Department of Transportation is completing a competition for 11 States to be able to establish State infrastructure banks that have a function similar to the National Infrastructure Corporation. Fifteen States entered this competition, and another 5 States wrote to express interest in entering future competitions.
This Congress has already given its approval of these efforts. The fact that so many States are looking for innovative financing methods should send a clear signal to this Congress that we must do more to meet these national infrastructure needs. The National Infrastructure Development achieves this objective.
This is a good government bill that benefits every American.
American workers benefit through good jobs. Under traditional government transportation and infrastructure investment programs, every billion dollars invested creates 35,000 to 50,000 new jobs. Under my bill, every dollar in Federal investment will result in $10 of actual construction. So each billion dollars in Federal investment will create 240,000 to 450,000 new jobs.
American businesses benefit from reliable infrastructure. Businesses depend on airports, roads, wastewater treatment facilities, and clean water projects. Stronger infrastructure will aid economic expansion.
American taxpayers benefit from better modes of transportation for fewer tax dollars, and better environmental quality.
Pension investors benefit because they can look for investment opportunities in the United States instead of overseas.
Every Member of Congress knows that Federal resources are scarce. The National Infrastructure Development Act will fill a major funding gap with a short term, limited investment and rebuild our Nation's infrastructure. Private investors need to have the opportunity to invest in America, and the Federal Government can work in partnership with the private sector.
This partnership will help us rebuild our country's aging infrastructure, create great jobs, and promote good investments.
I urge my colleagues on both sides of the aisle to closely examine this bill. Now is the time for us to move this important piece of legislation.
Mr. GEPHARDT. Mr. Speaker, I am pleased to join Congresswoman DeLauro in cosponsoring the National Infrastructure Development Act.
A fundamental governmental function is to create an economic environment conducive to growth and the creation of new opportunities and good jobs. No aspect of this function is more important than investing in the human and physical capital of the country.
To prosper, our country must invest in upgrading our public works and transportation systems. With the growing importance of high value added industry and just-in-time manufacturing, a strong transportation system is more vital to economic growth than ever. Unfortunately, we face a
$300-billion backlog in transportation investment alone. According to recent studies, our national investment in transportation falls $17 billion short of the amount needed just to maintain current levels of performance.
During the 1980's, real Federal investment in infrastructure fell 16 percent. As the Federal Government reduced its investment, greater burdens fell on the states and municipalities. And many of them--not just inner cities or small towns but suburbs as well--have been unable to meet their needs. The result: falling productivity and a diminished quality of life. People spend hours in traffic jams instead of in offices or at home with their families. Traffic congestion now costs drivers in our largest cities over $40 billion per year. And long-
promised road improvements needed to lower accident and fatality rates remain undelivered.
While we have made some progress in recent years, numerous studies document the need for additional investment. Bringing our bridges and highways up to current safety standards would require a doubling of the current highway program. The Bipartisan Commission to Promote Investment in America's Infrastructure reported that America's total investment shortfall in its infrastructure amounts to between $40 billion and $80 billion per year. At the same time, Federal resources are limited. As discretionary spending caps are lowered, the Federal capital investment program will come under enormous pressure.
The purpose of the National Infrastructure Development Act is to increase the public works investment critical to our long-term economic growth. It does so by using innovative financing and techniques already used in the private secton to encourage more investment in our roads, bridges and transit systems.
The National Infrastructure Development Act establishes an innovative, investment-oriented Foreign infrastructure strategy to help States and municipal governments finance needed infrastructure. In creates a National Infrastructure Corporation to provide a broad array of financing for infrastructure projects.
The Clinton administration's innovative investment program shows that there is tremendous interest among States and local governments in new methods that would make Federal capital dollars go further. In the past year along, the administration has given approval to over 70 innovative financing projects in over 30 States. Moreover, 20 States have expressed interest in establishing State infrastructure banks that would enable them to make more created use of Federal transportation funds.
While the Congress in ISTEA provided greater flexibility in our highway program, we have only scratched the surface of the potential. The recent experiences with privately-financed toll roads in California and Virginia and my many discussions with State officials, business leaders, and local leaders lead me to believe that there is a strong need for creative Federal leadership.
By leveraging private and other public sector monies, the corporation would substantially increase the amount of infrastructure created by each Federal public works dollar. Experts estimate that the corporation would leverage up to $10 in private investment for every $1 it receives from the Federal Government. Under this legislation, the corporation's capitalization would be $3 billion. It is anticipated that this could support generate tens of billions in new investment and hundreds of thousands of jobs, while eliminating hundreds of infrastructure bottlenecks that stifle growth.
Congresswoman DeLauro has proposed an innovative mechanism to address the national problem of underinvestment in our public works. The legislation make a valuable contribution to understanding the issue and attaining this goal. I urge my colleagues to join in our effort to boost the Nation's public investment and productivity.
Mr. FAZIO of California. Mr. Speaker, I rise in strong support of legislation creating the National Infrastructure Corporation [NIC], of which I am an original cosponsor.
Today, it is estimated that there are over $30 billion in unfunded infrastructure projects throughout the United States. Due to increasing Federal, State, and local budget constraints, important infrastructure projects are being delayed or not considered at all. While it is clear that the United States is becoming increasingly a technology and information driven based economy, the necessity to build, repair and upgrade our roads, bridges, rail system, schools, and water treatment projects are just as important today as they ever have been.
That is why I have joined my colleagues today to address this important issue. This bill established the National Infrasture Corporation to foster more public/private construction projects and to help create good jobs. The NIC will provide credit assistance in the form of direct loans, bond insurance, and development risk insurance for critically needed infrastructure projects throughout the country.
The creation of the NIC is an innovative or smart financing mechanism to help augment existing Federal and State grant programs. As we in Congress look for better ways to leverage Federal resources, the NIC is a prime example of how the Federal Government can provide initial financial and significant in-kind resources to build new infrastructure and strengthen our old and outdated infrastructure.
To that end, I look forward to working with Representative Rosa DeLauro to bring this legislation to the country's attention and make it a priority in Congress.
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