Bipartisan House Bill Seeks to Increase Bond Use for Water Infrastructure
A bill introduced by Rep. John Duncan (R-Tenn.) and Rep. Bill Pascrell (D-N.J.) would remove water and wastewater infrastructure projects from the Private Activity Bond (PAB) volume cap. PABs are a form of financing that allow state and municipal governments to issue tax-exempt bonds to private investors to fund costly infrastructure projects. Congress limits the use of PAB volume annually, although airport infrastructure projects have been exempted from the caps in the past.
Raising the PAB cap on water infrastructure projects would leverage $50 billion in private capital investment, create 1.4 million jobs, and add $101.5 billion in tax revenue to federal, state and local governments. Traditionally, the Department of Transportation (DOT) has funded public-private partnerships by issuing tax-exempt bonds for projects. A similar structure would be employed for water infrastructure projects under this legislation.
to learn more about the bill.