Governors Endorse Creation of National Infrastructure Bank

The National Governors Association (NGA) at its national conference this week urged President-elect Obama to consider establishing a national infrastructure bank that could issue bonds to finance infrastructure projects as part of the economic stimulus package currently being developed. During his campaign, Obama proposed creating an infrastructure bank that could issue up to $60 billion in tax-credit bonds, which provide investors with a tax credit instead of interest payments. The proposal is similar to legislation introduced in the 110th Congress by Senate Banking Chairman Christopher Dodd (D-Conn) and Sen. Chuck Hagel (R-Neb). NGA Chairman and Pennsylvania Democratic Gov. Ed Rendell called the infrastructure bank concept an important element in an economic recovery plan. Gov. Rendell has been a leading infrastructure advocate since his days as Mayor of Pennsylvania when he served as Chairman of the Rebuild America Coalition. Rendell has teamed up with California Governor Arnold Schwarzenegger (R) to reestablish the Rebuild America Coalition.