Cut to Invest: Revive Build America Bonds (BABs) to Support State and Local Investments

The Build America Bonds program was created by Congress in response to the recession's huge impact on local, state, and other public bodies' ability to issue debt. From 2009 through 2010, BABs funded about 30% of every new local and state long-term debt issuance. The BAB expired in 2010. This paper argues that the BAB should be reinstated to enable the currently financially and budget hampered local and state governments to invest in road, bridge, transit and other crucial infrastructure endeavors. The authors feel that an ongoing, continuing BAB program would offer low cost and flexible funding for a variety of infrastructure undertakings that would promote economic growth and create employment opportunities for many years.

• Record URL:
  http://www.brookings.edu/~/media/research/files/papers/2013/08/28-build-america-bonds/fed-series-babs-82813.pdf
• 
• Corporate Authors:

  Brookings Institution

  Metropolitan Policy Program, 1775 Massachusetts Avenue, NW
  Washington, DC  United States  20036-2188
• Authors:
  • Puentes, Robert
  • Sabol, Patrick
  • Kane, Joseph
• Publication Date: 2013-8

Language

• English

Media Info

• Media Type: Digital/other
• Features: References;
• Pagination: 7p

Subject/Index Terms

• TRT Terms: Bonds; Construction projects; Debt; Economic benefits; Financing; Investments; Local government; State government
• Identifier Terms: Build America Bonds
• Uncontrolled Terms: Transportation infrastructure
• Subject Areas: Finance; Highways; Public Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 01493467
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 6 2013 1:44PM