U.S. Rep. Mike Kelly (R-PA) on June 14 introduced a bipartisan bill that would decrease America’s national debt and at the same time turn around the economic trajectory of poorer cities and towns across the country.
”Even in this time of historically strong economic growth, some of our country’s poorest communities are still waiting for significant infrastructure improvements,” Rep. Kelly said. “This unique, bipartisan piece of legislation will directly benefit them and boost their economies without raising taxes or adding to the deficit.”
The Generating American Income and Infrastructure Now (GAIIN) Act, H.R. 6104, would require the U.S. Department of Agriculture (USDA) to sell its distressed assets on the open market and would direct the U.S. Treasury Department to distribute the proceeds to communities below the federal poverty line for infrastructure projects designed to increase their economic viability, according to a summary provided by Rep. Kelly’s office.
H.R. 6104, Rep. Kelly said, “will help bring our nation’s record-high debt back down. It’s win-win-win. With this bill, our communities will be overlooked no more.”
If enacted, H.R. 6104 also would require that a certain amount of the workforce for each project be hired from the same communities being improved, according to the summary.
U.S. Reps. William Lacy Clay, Jr. (D-MO) and Ted Budd (R-NC) are original cosponsors of H.R. 6104, which has been referred to both the U.S. House Agriculture Committee and the U.S. House Transportation and Infrastructure Committee for consideration.
”This innovative, bipartisan bill offers a creative way to help our poorest neighborhoods gain employment and critical investments in long-delayed infrastructure projects,” said Rep. Clay. “It is also fiscally responsible by taking distressed USDA assets and putting them to work to close the deep disparities that have deprived many urban areas of the vital infrastructure dollars needed to attract new jobs, new businesses and future growth.”
Rep. Budd added that his home state of North Carolina needs infrastructure investment. “This bill gets us there with bipartisan support,” he said.
In a June 14 joint statement, the lawmakers noted that many of the nation’s poorest areas are regularly overlooked by federal policymakers despite them being in dire need of infrastructure improvements that could spur economic growth and self-sustainability.
“They consider the revival of these forgotten cities and towns to be a moral, fiscal and economic imperative — one that can uniquely unite conservative Republicans and progressive Democrats from minority communities,” according to their statement.
The members bring ample experience to the table with the introduction of this bill. Rep. Kelly is a member of the U.S. House Ways and Means Committee and the Republican Study Committee. Rep. Clay serves on the U.S. House Financial Services Committee and the Congressional Black Caucus. Rep. Budd also is a member of the House Financial Services Committee and serves on the House Freedom Caucus.
H.R. 6104, according to the lawmakers, could help the U.S. raise a significant amount of money by authorizing the sale of more than $2 trillion in debt and lease assets that federal agencies currently hold.
The time to sell such fixed-rated debt assets is now, they said, in order to maximize asset value as interest rates rise and the Federal Reserve’s quantitative tightening program is forthcoming. Additionally, according to their statement, borrowers would be given 30 days notice of any sale and offered the opportunity to refinance at the same price of a potential sale.
Among other provisions, H.R. 6104 would make any loans that remain outstanding eligible for sale to investors. Under the bill, such sales would occur without recourse; would create no liability for the U.S. government; and servicing would be provided by qualified private entities, according to a summary provided by Rep. Kelly’s office.