State infrastructure banks would be reestablished to help fund local transportation projects under a bipartisan measure introduced on Wednesday by Reps. Richard Hanna (R-N.Y.) and Janice Hahn (D-Calif.).
The State Transportation and Infrastructure Financing Innovation Act would update the federal highway bill to allow states to use federal funding to establish infrastructure banks throughout 2014.
States would not, however, be forced to establish infrastructure banks under the proposed legislation.
Congress established the State Infrastructure Bank program in 2005. The measure, which expired in 2009, allowed states to use up to 10 percent of their existing federal transportation dollars to establish an infrastructure bank to finance local projects.
“During difficult budgetary times, these banks seeded with federal dollars can help leverage private investment in local projects across the nation,” Hanna said. “This is precisely the type of cost-effective, flexible and innovative transportation policy that Congress should support now more than ever…”
The measure introduced by Hanna and Hahn would reauthorize the program and increase funding caps from 10 percent to 15 percent of existing federal transportation dollars.
“We as a nation are facing an infrastructure crisis,” Hanna added. “For years, we have allowed our roads, bridges and ports to deteriorate without regard to its effect on our recovery. This legislation is an important step in ensuring local infrastructure projects get the vital funding they need to create jobs and build the goods movement system our businesses need to succeed.”