A bipartisan bill sponsored by U.S. Rep. Mike Kelly (R-PA) that proposes selling off distressed federal properties and using the proceeds to pay down the national debt is gaining ground in Congress with additional support.
The Generating American Income and Infrastructure Now (GAIIN) Act, H.R. 6104, which Rep. Kelly introduced on June 14, would require the U.S. Department of Agriculture (USDA) to sell certain distressed notes and other obligations held by the agency. Of the proceeds from the sale, 50 percent would be deposited into an account for carrying out infrastructure projects in low-income communities and 50 percent would be retained in the U.S. Treasury for deficit reduction, according to the congressional record summary.
U.S. House Majority Leader Kevin McCarthy (R-CA) has endorsed H.R. 6104, which was cosponsored by U.S. Reps. Lacy Clay (D-MO) and Ted Budd (R-NC).
“Rebuilding America’s infrastructure is an intense national priority that persistently lacks a sufficient response,” Rep. McCarthy said, according to a Nov. 2 statement released by Rep. Kelly’s office. “To help solve these stubborn challenges, we should debate big, bold ideas. We are in a time of disruption to the old ways of Washington that centered policy debates on old ideas with a new coat of paint. The great promise of the Trump administration is that we can break through stalemate and stale ideas to build an economy that works for all Americans, especially Americans facing hardship.
“The GAIIN Act is an example of an alternative solution that deserves consideration to achieve our shared goal for a better American infrastructure in our communities most in need,” said McCarthy.
Currently, federal agencies hold more than $2 trillion in debt, according to Kelly’s statement. Federal agencies also lease assets that, if sold, could raise a significant amount of money.
Additionally, the consumer protection obligations associated with eligible USDA loans and guarantees would convey with the sale of these assets, resulting in less impact on borrowers, according to the statement, which noted that borrowers would be given 30‐days notice of any sale and offered the opportunity to refinance at the same price of a potential sale.
Several other lawmakers also now support H.R. 6104, including Democratic members of the Congressional Black Caucus and Progressive Caucus, U.S. Reps. Clay, Sheila Jackson Lee (D-TX), and Frederica Wilson (D-FL); as well as members of the House Freedom Caucus and Financial Services Committee: U.S. Reps. Budd, Warren Davidson (R-OH), and Alex Mooney (R-WV).
Reps. Kelly and Clay also spread the word about H.R. 6104 in their bipartisan Sept. 18 op-ed written for RealClearPolitics.com.
“As members of the Democratic and Republican parties, we disagree on most issues, but we share the common belief that more can and must be done to help lift up the most impoverished communities in our country,” the lawmakers wrote. “While many of the problems in these areas cannot be cured by government alone, Washington policymakers can take certain actions to begin directing resources to the places that need them most.”
They pointed out that HR 6104 would help fund critical infrastructure projects in the poorest areas of the nation without any new taxes or spending, while also helping to pay down America’s “record-high national debt.”
“Reviving America’s poorest cities and towns is a moral, fiscal, and economic imperative,” according to their op-ed. “It is rare that one piece of legislation can meet this objective on its own, let alone bring together conservative Republicans and progressive Democrats from minority communities.”