Sen. Roger Wicker (R-Miss.) and Sen. Michael Bennet (D-Colo.) have introduced a bipartisan infrastructure bonds bill that would create certain “direct-pay” taxable bonds as a method of funding for public projects during the pandemic.
Both state and local governments would be free to issue taxable bonds for public purposes that are qualified to be financed by tax-exempt bonds via the American Infrastructure Bonds Act. Policymakers can utilize those bonds for infrastructure-focused projects.
“Empowering our local leaders to start important infrastructure projects is a proven, cost-effective way to help our communities emerge from severe financial hardship with assets that provide value to the area for years to come,” Wicker said according to an article from Transport Topics.
Some prominent groups that are backing the proposed legislation include the National League of Cities, the National Association of Counties, the Government Finance Officers Association, the American Public Gas Association, and the National Association of Bond Lawyers.