New Infrastructure Bonds Sought by House Transportation Chairman

Representative John Mica, chairman of the House transportation committee, said he’ll propose new types of infrastructure bonds to a tax-writing committee later this year.

The bonds will differ from the so-called Build America Bonds created by President Barack Obama’s 2009 stimulus plan. Terms of those bonds were “too generous,” Mica, a Florida Republican, said at a press conference today in Washington.

The Build America Bonds project was allowed to expire Dec. 31 under an agreement Obama reached with Republican lawmakers. More than $174.1 billion of the taxable securities were sold from April 2009 through Dec. 31, making them the fastest-growing segment of the $2.8 trillion municipal market, according to data compiled by Bloomberg.

“I have my own ideas of what these bonds should look like, but I’m not going to go into that now,” Mica said.

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To contact the reporter on this story: Carol Wolf in Washington at cwolf@bloomberg.net

To contact the editor responsible for this story: Bernard Kohn at bkohn2@bloomberg.net

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