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| October 29, 2010
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Program Expires in 2 Months Unless Extended by Lame-Duck Congress |
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The Build America Bonds program is set to expire at the end of this year unless an extension is passed by Congress during its lame-duck session following the November elections. Both chambers failed to pass an extension this summer despite multiple attempts.
The bonds program was discussed Wednesday during a workshop in San Antonio hosted by the National Association of Bond Lawyers. The $140 billion in Build America Bonds that have been issued since the program began as part of the American Recovery and Reinvestment Act of 2009 represent 25% of the municipal primary market and 40% of all new money issues done in 2010 for state and local governments, BNA reported. States and municipalities use Build America Bonds to finance infrastructure improvements. The bonds are unique because they are taxable, and the U.S. Department of the Treasury pays a subsidy to the issuer to reduce borrowing costs. Both the House and Senate debated an extension during the summer legislative session, but neither was able to come to a decision on the fate of Build America Bonds, leaving its future unclear as the expiration date looms. (see AASHTO Journal stories from June 25 and July 30) Questions regarding this article may be directed to editor@aashtojournal.org. |