An Open Letter to Congress:

A $5 Trillion National Infrastructure Bank to Build Back Best, HR4052

Everybody agrees we have to fix our crumbling infrastructure. The problem is nobody knows how to pay for it. As Congress takes up the issue of financing infrastructure through the budget, we urge them to also create a new National Infrastructure Bank (NIB). This Bank will cover projects that the federal budget, and state and local governments, are not able to cover. 

The need for such a bank was underscored yet again in 2021 when the American Society of Civil Engineers issued their quadrennial Report Card for the United States and graded the nation C minus. ASCE estimated that the gap between what is currently funded and what is needed over the next ten years has grown to $2.6 trillion.

Highlights of the ASCE Report Card include: 

• There is a water main break every two minutes, and an estimated 6 billion gallons of treated water lost each day in the U.S., enough to fill over 9,000 swimming pools. 
• Growing wear and tear on our nation's roads have left 43% of our public roadways in poor or mediocre condition, a number that has remained stagnant over the past several years. 
• Currently, 42% of all bridges are at least 50 years old, and 46,154 are considered structurally deficient, meaning they are in “poor” condition, but still in use and waiting to collapse. 

Bank to Supplement Budgetary Outlays

Build 21st Century Projects

Congress will fund a certain amount of this through the budget. We support that. A new National Infrastructure Bank will finance the rest, approximately $5 trillion. This will include not only repairs to existing infrastructure but also all the new 21st century projects such as: universal broadband, $1 trillion into high-speed rail nationwide, the Hudson River Tunnels in New York, vast water projects, and hundreds of other projects all over the country.

 No Increase to Federal Deficit

H.R. 4052 specifies that the Bank will be capitalized with existing Treasury debt.  Consequently, there will be no increase in the federal deficit.

No New Federal Spending - No New Federal Taxes

Because the Bank will earn income on the $5 trillion in loans it makes (at very low interest rates) it will not require federal spending.

$5 Trillion to Invest

The Bank will be capitalized with $500 billion of existing Treasury debt.  It will be authorized to invest $5 trillion to fix all our infrastructure. 

It's Been Done Before

This bank is modeled on four previous institutions which built much of the infrastructure of the nation. The last one helped end the Great Depression and win WWII. 

25 Million New Jobs

The National Infrastructure Bank will create 25 million new jobs, pay family-sustaining wages, and mandate Buy American provisions. 

It will ensure the hiring of minority populations and disadvantaged business enterprises. It will supercharge our industry and small business. 

Bi-Partisan

It is attractive to both Republicans and Democrats because it requires no new Federal taxes or debt, creates millions of jobs and fixes what’s broken. 

Repair All Existing Infrastructure

In summary, this legislation would address roads, bridges, and transit; electric grid, including cybersecurity; schools; dams, levees, waterways and ports; airports; rail; drinking water and wastewater systems; public parks and recreation facilities; and hazard and solid waste. 

As stated in the legislation, “. . . expanded investment is needed in new manufacturing centers, affordable housing, broadband access, science and technology drivers, to accommodate population growth and migration, and for other improvements in rural, urban, and low-income areas that the private sector is not currently serving … “ 

Urgent

The time to act is now. Delaying any longer will result in increased costs, as many projects will be beyond repair and require a full replacement.