As we pass the one-year mark of this pandemic, we have a lot to be hopeful for. Millions of vaccine doses are being administered every day, and restaurants and other service-oriented businesses are slowly starting to welcome back their employees and guests.
City and county governments have shouldered many of the unanticipated costs associated with the coronavirus pandemic. While their revenues have plummeted, the need for essential services has skyrocketed, and cities and states have delivered. But now, they face challenges keeping up with planned investments, no matter how cost-effective. A big investment in our nation’s infrastructure has been necessary for years, long before the pandemic struck. And while we’re not out of the woods yet, we must now turn our attention to jumpstarting the economy and getting everyone back to work.
We in the federal government have a unique opportunity. Substantial investments in our nation’s infrastructure will spur economic growth and uplift our workers and families. For too long, our most utilized public goods have gone without much-needed improvements, compromising the safety and security of our communities.
Last year, the House passed the Moving Forward Act, which included unprecedented investments in local infrastructure and clean energy, investments delivered through mechanisms developed by this very Subcommittee. We know that when we invest in our cities and counties, we are investing in families and workers-all while putting our country on a path towards net-zero carbon emissions, making communities and roads safer, and addressing long-standing racial and economic disparities.
Some of the most useful mechanisms available to us within the Ways & Means Committee’s jurisdiction exist in the municipal bond space.
For example, the Moving Forward Act brought back tax-exempt advanced refunding bonds to allow city and state governments to take advantage of low interest rates and free up needed resources. Additionally, this legislation helps municipalities afford important infrastructure improvements by increasing the threshold for bank-qualified bonds, allowing smaller municipal bond issuers access to low-cost capital. And last but not least, this legislation reinstates Build America Bonds, bigger and better than before, to provide municipal issuers a powerful tool to finance additional infrastructure investments.
And as I previously mentioned, the Moving Forward Act includes the GREEN Act, a historic investment in clean energy that I am proud to have worked on with all Democratic Members of the Committee. In addition to expanding tax incentives for clean energy development, we establish a direct pay provision which will allow tax exempt organizations like local governments and public power entities to access these credits in a way they previously could not. The bill also includes incentives to make it easier for local agencies to afford zero-emission transportation options and energy efficient buildings.
In this Congress, it is my hope that we can expand on the Moving Forward Act to meet the moment and tackle the infrastructure and climate change challenges facing this country and world - all while creating jobs and spurring economic recovery. Our local government partners will be critical to both of those efforts.
And with that I will recognize the Ranking Member, Mr. Smith of Nebraska, for the purposes of an opening statement.
