On February 12, 2018, the Trump Administration released the highly anticipated infrastructure proposal. The plan, included in the FY 2019 budget request,calls for $200 billion in direct federal funding to leverage $1.5 trillion in private investment. In what will cause heartburn on Capitol Hill, the Administrations budget calls for the elimination of popular transit programs such as Transportation Investment Generating Economic Recovery (TIGER) grants and Amtrak to fund the proposal.
Private Activity Bonds Explained
Of the $200 billion, $100 billion will create an Incentives Program to spur additional dedicated funds from States, localities, and the private sector. Of this program, $20 billion will be allocated to an expanded usage of private-activity bonds.
Next Steps
The BDA continues to work with our partners in the MBFA and the issuer community to engage with Capitol Hill and the Administration to ensure that governmental and private-activity bonds will be a cornerstone of any infrastructure legislation.
