WASHINGTON – A bipartisan coalition of ten U.S. senators that includes U.S. Senator Chris Coons (D-Del.) introduced legislation Thursday 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financing authority to help states and localities better leverage private funds to build and maintain the nation’s outdated infrastructure.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 Act, or BRIDGE Act, helps to address the nation’s alarming investment shortfall in maintaining and improving its transportation network, water and wastewater systems, and energy infrastructure. The legislation would provide an additional financing tool for states and localities, which can create new jobs here at home while also increasing our nation’s economic competitiveness.

"Investments in America's infrastructure are investments in American jobs," Senator Coons said. "Construction jobs, production jobs, and jobs at nearly every American business all depend on functioning infrastructure. Our country needs to be investing more in its infrastructure, not less. The bipartisan BRIDGE Act is an innovative approach to getting the funding we need to sustain and strengthen America's critical infrastructure."

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 19th among 148 countries surveyed in quality of overall infrastructure compared to our global competitors. 

“We put off and put off these investments because it’s politically convenient, but when we do, we’re only putting off the inevitable,” Senator Coons continued. “The American Society of Civil Engineers estimates that in the next five years, our country will come up about $1.1 trillion short of what it needs to bring American infrastructure to even adequate condition. When we neglect America’s infrastructure, we’re actually adding to America’s debt. We cannot keep kicking this can down the road, especially since this road is falling apart.” 

To begin addressing this shortfall, 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 up to $300 billion in total project investment. The authority is structured in such a way as to make it self-sustaining over time.

  • The BRIDGE Act includes broad eligibility for funding: 
    Projects would have to be at least $50 million in size, and be of national or regional significance to qualify. Five percent of the authority’s overall funding would be dedicated to projects in rural regions, and rural projects would be required to be $10 million in size.
  • The BRIDGE Act addresses current gaps in infrastructure financing:
    The authority would finance no more than 49 percent of the total costs of the project in order to avoid crowding out private capital. Loans and loan guarantees would be subject to modest additional fees, which will allow the authority to quickly become self-sustaining over time. 
  • The BRIDGE Act establishes independent, non-partisan operations:
    Having project finance experts in-house will help states and localities go toe-to-toe with private sector partners to ensure that taxpayers are getting good value for our investments through public-private partnerships. The authority would operate independently of existing federal agencies, led by a Board of Directors with seven voting members and a CEO, all of whom would be required to demonstrate proven expertise in financial management and be confirmed by a vote of the Senate.

In addition to Senator Coons, the BRIDGE Act is sponsored by Senator Mark Warner (D-Va.), Roy Blunt (R-Mo.), Lindsey Graham (R-S.C.), Kirsten Gillibrand (D-N.Y.), Dean Heller (R-Nev.), Amy Klobuchar (D-Minn.), Roger Wicker (R-Miss.), Claire McCaskill (D-Mo.), and Mark Kirk (R-Ill.).