Sens. Mark R. Warner (D-Va.) and Roy Blunt (R-Mo.) led a bipartisan coalition of senators in introducing legislation to establish a new infrastructure financing authority to help states and localities better leverage private funds to build and maintain the nation’s outdated infrastructure.
The Building and Renewing Infrastructure for Development and Growth in Employment (BRIDGE) Act helps to address the nation’s alarming investment shortfall in maintaining and improving our transportation network, water and wastewater systems, and energy infrastructure. The legislation would provide additional financing tools for states and localities to create new jobs here at home while also increasing our nation’s economic competitiveness.
“As we mark the 5th annual Infrastructure Week, we must think boldly and make real investments in our nation’s infrastructure rather than kick the can down the road with short-term fixes,” said Warner. “The BRIDGE Act offers a bold, bipartisan solution to help address our infrastructure needs by incentivizing private investment and pairing it with public resources. This legislation will set a clear framework that will help create jobs, expand U.S. commerce and trade, and keep American businesses competitive.”
“Missouri is a transportation hub, and improving our roads, bridges and waterways is critical for economic growth in our state and across the nation,” said Sen. Blunt. “This bipartisan bill will provide much-needed resources to strengthen infrastructure and help ensure Missouri’s farmers, manufacturers, and small businesses are able to remain competitive in an increasingly global economy.”
The BRIDGE Act is cosponsored by Sens. Richard Blumenthal (D-Conn.), Chris Coons (D-Del.), Kirsten Gillibrand (D-N.Y.), Lindsey Graham (R-S.C.), Dean Heller (R-Nev.), Amy Klobuchar (D-Minn.) and Thom Tillis (R-N.C.)
America currently spends roughly 2 percent of its GDP on infrastructure – about half what it did 50 years ago. By comparison, Europe spends around 5 percent, and China spends 9 percent of GDP on infrastructure. According to the World Economic Forum’s Global Competitiveness Report, the United States currently ranks 12th among 144 developed countries in overall infrastructure compared to our global competitors.
The American Society of Civil Engineers latest estimate shows that in order to close the $2.0 trillion 10-year investment gap, meet future need, and restore our global competitive advantage, we must increase investment from all levels of government and the private sector from 2.5- to 3.5 percent of U.S. Gross Domestic Product (GDP) by 2025.
As of 2012, of the more than 600,000 bridges in the U.S., 24.9 percent were either functionally obsolete or structurally deficient. Nationally, our bridges are, on average, 42 years old, and need an estimated $76 billion to repair and replace. Similarly, the average age of the 84,000 dams in the country is 52 years old, and the Association of State Dam Safety Officials estimates that aging and high-hazard dams require an investment of $21 billion to repair.
To help address this funding shortfall for our nation’s transportation, water and energy infrastructure, the BRIDGE Act will establish an independent, nonpartisan financing authority to complement existing U.S. infrastructure funding. The authority would provide loans and loan guarantees to help states and localities fund the most economically viable road, bridge, rail, port, water, sewer and other significant infrastructure projects.
The authority would receive initial seed funding of up to $10 billion, which could incentivize private sector investment and make possible $300 billion or more in total project investment. The authority is structured in a way to make it self-sustaining over time without requiring additional federal appropriations.
“If we are to improve our nation’s infrastructure, graded a D+ in ASCE’s 2017 Infrastructure Report Card, we can no longer afford to defer needed investment in modernization and maintenance. Under Sen. Warner’s leadership, the BRIDGE Act would make a significant step toward this increased, sustained investment, establishing a new, innovative funding authority designed to attract billions of dollars in private sector investment in our nation’s water, transportation and energy sectors. Sen. Blunt’s co-sponsorship demonstrates once again that infrastructure is a bipartisan issue that impacts the lives of all Americans. Through the BRIDGE Act, our nation’s infrastructure will receive much-needed additional funding to help narrow the $2 trillion infrastructure investment gap that currently costs every American family $3,400 a year out of their discretionary income,” said Norma Jean Mattei, PH.D., P.E., president, American Society of Civil Engineers
“The 31 national associations and construction trade unions of the Transportation Construction Coalition (TCC) applaud your bipartisan efforts in crafting the Building and Renewing Infrastructure for Development and Growth in Employment (BRIDGE) Act. We support your proposal as a means to supplement the core federal transportation investment programs by utilizing an array of financing tools to encourage private sector investment in needed transportation infrastructure improvements. As Congress and the Administration move forward on a rewrite of the nation’s tax code and an encompassing infrastructure package promised by President Trump, the TCC believes a permanent solution to the Highway Trust Fund revenue shortfall should finally be addressed and included in either of these legislative packages. Additionally, all options, including alternative project delivery and finance methods like the BRIDGE Act, to address the nation’s infrastructure deficit need to be considered as well. The BRIDGE Act represents an innovative approach that would provide the ability to support nationally and regionally significant infrastructure projects that require innovative financing outside the existing core federal programs,” said the Transportation Construction Coalition.
“Sens. Roy Blunt of Missouri and Mark Warner of Virginia, should be commended for their ongoing effort to strengthen our nation’s investment in critical infrastructure. Their legislation, The Building and Renewing Infrastructure for Development and Growth in Employment Act (The BRIDGE Act), establishes a set of creative tools and incentives to draw private capital off the sidelines and promote effective public private partnerships. There is at least a $1.4 trillion shortfall in funding needed to adequately support infrastructure needs between now and 2025. The BRIDGE Act is key to unlocking private investment necessary to support long-term economic growth and a more competitive nation,” said Jason Grumet, president of the Bipartisan Policy Center.
According to ASCE, 42 percent of our major urban highways are congested, which costs the economy an estimated $101 billion in wasted time and fuel annually. Currently, the Federal Highway Administration estimates that $170 billion in capital investment would be needed on an annual basis to significantly improve conditions and performance.
Other individuals and organizations endorsing this legislation include Sean McGarvey, president of the North America’s Building Trades Unions; Ed Rendell, co-chair of Building America’s Future and former governor of Pennsylvania; Chris Spear, president and CEO of the American Trucking Association; Kurt J. Nagle, president and CEO of the American Association of Port Authorities; Elaine Nessle, executive director of the Coalition for America’s Gateways and Trade Corridors; Jane F. Garvey, North America chairman of Meridiam Infrastructure and former administrator of the Federal Aviation Administration; Adrea Turner, director of Transportation for America; and Jennifer Aument, Transurban Group general manager for North America.