By Keith Laing - 03/15/11 02:05 PM EDT
The legislation would create an American Infrastructure Financing Authority at an initial cost of about $10 billion. Its objective would be to provide loans and loan guarantees for large infrastructure projects.
Kerry has stressed that money from the bank would come in the form of loans, not grants.
“The federal government does no more than 50 percent of the loan,” the senator told The New York Times. “We expect that to leverage $600 billion or so in infrastructure investments over time.”
About $30 billion for the bank is included in the six-year, $556 billion transportation plan proposed by President Obama. But lawmakers in both chambers have already signaled they are unlikely to appropriate that much money for transportation.