Kerry to introduce infrastructure bank bill

March 15, 2011

Boston Globe

Theo Emery

Senator John Kerry of Massachusetts, along with Republican Kay Bailey Hutchison of Texas, will propose legislation today that would create a new infrastructure bank to help finance large public works projects.

The legislation would provide loans and loan guarantees for bridges, rails, roads and other infrastructure projects through an independent entity called the American Infrastructure Financing Authority, which would be similar to the Export-Import Bank.

The authority would initially be financed by the federal government but would eventually become self-sustaining. It would not be allowed to finance more than 50 percent of the costs of projects.

Kerry announced his plans to propose the infrastructure bank last fall, telling the Senate Banking, House and Urban Affairs Committee that "well functioning infrastructure is not a luxury." He reiterated that call in January at a speech at the liberal-leaning Center for American Progress, saying that growth was tied to infrastructure.

"As we invest too little and our competitors invest more and more, the harder and harder it will be to catch up," he said.

The noon press conference will also include U.S. Chamber of Commerce President and CEO Thomas J. Donohue.

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