Infrastructure Finance

After decades of underinvestment, we face an extreme infrastructure deficit in the United States. In order to bring our infrastructure into the 21st century and support a growing economy, we need to invest more in essential projects including highways, bridges, hospitals, airports, schools, water and sewer systems.

The Trump Administration has identified infrastructure as one of the top priorities of the President’s agenda, and the Administration’s and Congress’ recent commitment to infrastructure investment – which will help spur job creation and economic growth – is an important step toward addressing the infrastructure crisis.

The problem we face is not a lack of capital, but rather the ability to identify reliable funding sources to support debt service, return on capital and maintenance costs. At SIFMA, we believe it is critical to close the infrastructure financing gap and it is imperative to restore and create additional vehicles to assist in resolving this need. We support:

  • Fully preserving the tax exemption for municipal bonds, which is the financing mechanism for the clear majority of infrastructure projects that state and local governments undertake;
  • Restoring the ability of state and local governments to advance refund their securities, which will help them efficiently manage their financial obligations;
  • Promoting more private investment in public projects;
  • Applying design-build strategies;
  • The authorization of a new direct-payment bond program and increasing the volume cap for private activity bonds.

To start closing the financing gap and restoring our nation’s infrastructure, initiatives for infrastructure finance should recognize the need for a partnership among federal, state and local governments and private investors and developers. Leveraging our capital markets can create expanded financing options.

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