A National Infrastructure Bank Would Help Pay for Needed Fixes

From the House | Rep. Kate Nugent

February 8, 2024

I was recently asked to speak at a virtual national town hall on an idea and policy new to me, but which has been in existence since the founding of the United States: a national infrastructure bank.

H.R.4052 is the bill currently in Congress that would authorize this bank and there is a national coalition working to get members to co-sponsor and champion the bill. A national infrastructure bank is what Alexander Hamilton developed that allowed the states to manage their debt, create capital for funding new projects vital to the success of the new country and generate economic momentum.

At another critical time in our country’s history, a national infrastructure bank was used by President Franklin D. Roosevelt to finance much of the New Deal that helped pave the way to the strongest middle class in global history. This idea interested me for several reasons.

One, such banks are not new, and have been tested and used successfully, first here and now in many other countries. The U.S. has created five such banks during its relatively short existence as a country that, each time, have helped generate economic growth and strength.

In addition, a national infrastructure bank is outside of the normal Congressional budgeting process, so it does not require new taxes or fees, a budget agreement or a continuing resolution. In this way, it can be immune from some of the stagnation in Congress.

Finally, there is a significant need for capital investment in Vermont and across the country that has arisen from decades of deferred maintenance, underinvestment and political polarization. Such a bank would allow for financing of projects that would generate much-needed economic energy and increase revenues from existing taxation sources and avoid needing to increase taxes on the middle class at a time when most feel stymied by inflation and a stagnant housing market. School construction needs in Vermont alone are daunting relative to the current government funding capacity.

Another reason I support this: It would have benefits beyond just the physical infrastructure it would help fund, similar to how it helped our nation move out of the Great Depression, both economically and psychologically.

As we have been reckoning with our past in new ways, it seems we also need to remember the reason we are reckoning and trying to atone — we believe we are worthy of doing better. Doing better, I believe, includes and requires forgiveness and redemption so that we ensure all are included in new economic growth.

Being able to invest in projects we need right now, from energy transformation and climate-resilient downtowns to school remodeling and housing stock, in addition to bridges and roads, would have a visible and significant impact on the quality of our daily lives, on the vibrancy of our communities and on neighborhood connectivity.

Read op-ed here.