BUILD Act: $5.8 Billion in Bonds for Public-Private Transportation Infrastructure Projects (S. 2320)

What is S. 2320?

(Updated December 29, 2020)

This bill — known as the BUILD Act — would aim to facilitate investment in transportation infrastructure projects by letting state and local governments enter into public-private partnerships to help finance them. It would increase the amount of tax-exempt Private Activity Bonds (PABs) that could be issued on behalf of state and local governments for highway and freight improvement projects by $5.8 billion. That would put the total amount of PABs that can be approved by the U.S. Dept. of Transportation (USDOT) at $20.8 billion, as less than $5 billion in PABs remain available under USDOT’s original authority.

The bill’s full title is the Building United States Infrastructure and Leveraging Development Act.

Argument in favor

This common sense, bipartisan bill would authorize more bonds that allow state and local governments to finance transportation infrastructure projects through public-private partnerships.

Argument opposed

The Dept. of Transportation shouldn’t be authorizing any bonds to finance public-private infrastructure projects at all. Taxpayers should foot the entire bill for our transportation infrastructure.

Impact

State & local governments financing highway and freight infrastructure projects with their private sector partners; and USDOT.

Cost of S. 2320

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Sen. John Cornyn (R-TX) introduced this bill to facilitate additional investment in infrastructure projects by authorizing $5.8 billion more in Private Activity Bonds (PABs) that help state and local governments enter into public-private partnerships:

“This bill delivers on our collective desire to reinvest in America’s infrastructure, and expands one valuable tool in the toolbox. It will help the Administration finance additional highway and freight improvement projects through public-private partnerships, resulting in minimal cost to taxpayers with maximum impact on U.S. highways and freight corridors.”

Original cosponsor Sen. Mark Warner (D-VA) added:

“Private Activity Bonds have served as an engine for leveraging private investment in Virginia’s roads and bridges, helping to finance major projects such as the I-495 HOT lanes and other key infrastructure ventures. This legislation will allow for expanded use of this proven economic tool and, coupled with other programs such as a financing authority that would be created through passage of my BRIDGE Act (S. 1168), we can attract billions of dollars of additional investment that will help renew our nation’s infrastructure and keep us competitive in the global economy.”

Media:

• Sponsoring Sen. John Cornyn (R-TX) Press Release
  
• Federal Highway Administration (Context)