21st Century National Infrastructure Bank


 A 21st Century National Infrastructure Bank

Modernization and repair of our nation's infrastructure is a key to creating good-paying jobs, and restoring economic growth that had remained largely stagnant for the last decade. In 2020, a deadly Coronavirus pandemic, and recession resulting from the shutdown, has left tens of millions of people unemployed who can benefit from new infrastructure-related jobs.

The American Society of Civil Engineers (ASCE) reported in 2017 that we need $4.6 trillion just to repair the nation’s infrastructure – roads and bridges, the power grid, dams and levees, water and wastewater facilities, airports and rail– of which at least $2.1 trillion is not funded. In addition, we need new investments in schools, hospitals, affordable housing, broadband, and parks and recreation. Financing of at least $4 trillion is needed to properly develop these projects, which is not available from Federal or State Budgets. 

Due to the Coronavirus, the U.S. lost 20.5 million jobs in April 2020, the steepest recorded surge in American unemployment ever recorded, wiping out a decade of job gains. The unemployment rate spiked to 14.7 percent, up from 4.4 percent in March, as thousands of businesses closed and laid off, or furloughed, workers they could no longer afford to employ.

The National Infrastructure Bank, modeled on four previous banks in our nation’s history, would create a government-owned bank that would lend up to $4 trillion to state and local governments to repair and upgrade public infrastructure in every part of America. The bank would be capitalized with existing, privately owned U.S. Treasury Bonds, exchanged for preferred stock paying an extra 2%.

This Bank has many advantages over all other proposals now under discussion to re-build America’s infrastructure and re-employ American workers affected by the Coronavirus recession. This new National Infrastructure Bank (NIB):
  • At $4 trillion, Is Adequately Sized to Finance Projects In Every State: The loans would be issued not only to bring our infrastructure up to a state of good repair, but to invest in new technologies, including high speed rail, new water projects, including desalination, and new forms of energy, like small modular reactors.
  •  Operations: Uses existing debt to capitalize the Bank, and creates working cash to fund loans just like any commercial bank; provides low interest loans, and maintains public management of infrastructure both lowering total project costs; 
  • Workers: Creates over 25 million new jobs, paying Davis-Bacon wages; Buy American; Project Labor Agreements; re-hires from among the 33 million Americans now unemployed; with an emphasis on minority workers and contractors; provides training in permanent, new, construction and related occupations. Stimulates union membership. Reduces the income gap.
  •  Businesses: Creates lots more business from all the new construction; the economy is more productive; trucks move faster; and there is increased consumer demand for products and services that businesses provide.
  •  Economy: Ramps up jobs and production coming out of the Coronavirus collapse; pushes up long-term growth from 1.8%/year, to 5%/year (based on past performance and recent computer modeling).
  •  Federal Budget: Creates no new Federal Debt; requires no new Taxes. Is not dependent on Pay-As-You-Go financing from budgets. No other infrastructure or jobs proposal is budget neutral like this one.
  •  State and Local Finances: New jobs and economic recovery/growth improve local finances much faster compared to the 2008 Recession.

Only a large NIB is capable of rebuilding American infrastructure, creating millions of long-lasting jobs, and lifting us out of this Deep Recession. Seventeen state legislatures, National Association of Counties, National Association of Minority Contractors. Labor Unions, and other organizations across America have signaled their support for this NIB.

This is our chance to turn this crisis into an opportunity that will be benefit all of America, not just the 1% at the top. 

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