Privacy Notice

Senator Feinstein Introduces Legislation
to Create Jobs, Stimulate Economy, and Improve Nation’s Infrastructure
July 16, 2003

Washington, DC – U.S. Senator Dianne Feinstein (D-Calif.) today introduced legislation that would provide a $50 billion investment in American infrastructure to create new jobs and provide a stimulus to the nation’s sluggish economy.

Over the past three years:

  • 3.1 million private sector jobs have been lost, bankruptcies have hit record highs, and millions of Americans have seen their retirement savings disappear;

  • The unemployment rate has increased from 4.2 percent to 6.1 percent – the highest level in nine years; and

  • Consumer confidence remains near 10-year lows.

"Even after 13 short-term interest rate reductions and three tax cuts over the past three years, the United States economy remains in the doldrums," Senator Feinstein said. "This nation does not need more tax cuts for the wealthy. What we need is an economic stimulus plan that will create new jobs and increase economic activity, and that is just what this legislation is designed to do."

According to the Department of Transportation, each $1 billion in new infrastructure investment creates

47,500 new jobs: 26,500 direct jobs for construction workers, engineers, contractors, and other on-site employees, and 21,000 indirect jobs resulting from the spending associated with the investment.

"It is estimated that this legislation will create up to 2.3 million jobs and generate $310 billion of economic activity," Senator Feinstein said. "These are jobs our economy desperately needs, particularly in the transportation and construction sectors, which have been hit hard by the recent downturn. While new home construction has sustained the homebuilding trades, there are now 715,000 unemployed private construction workers, most of whom were laid off due to a downturn in nonresidential building. That represents an 80 percent increase from three years ago."

The bill authorizes $50 billion over the next 10 years for infrastructure investment to improve the safety, security, and efficiency of our highway, transit, aviation, rail, port, environmental, and public buildings infrastructure.


Specifically, the bill provides:

  • $5 billion in additional authority for Federal-aid highway capital investments, drawn from the $19 billion surplus in the Highway Trust Fund.

  • $3 billion in transit capital and operating grants, drawn from the surplus in the Highway Trust Fund.

  • $3 billion in airport development projects, including $2 billion in airport improvement program grants to enhance airport safety, efficiency, and capacity.

  • $14 billion of tax-credit high-speed rail bonds for infrastructure construction and the acquisition of rolling stock.

  • $7.5 billion for capital investment in passenger and freight rail, including $2.5 billion for Amtrak.

  • $2.5 billion for port security grants to ports and marine facility operators.

  • $11.5 billion for wastewater and drinking water infrastructure, to be administered through the existing Clean Water State Revolving Fund and Safe Drinking Water State Revolving Fund.

  • $1.5 billion to fund investment in currently authorized water resources infrastructure projects.

  • $1.5 billion in grants to economically distressed communities for economic development.

  • $500 million for the repair and alteration of Federal buildings.

"As anyone who has taken a hard look at our transportation needs can attest, federal funding for highways, transit, aviation, high-speed rail, and ports, among other areas, remains inadequate," Senator Feinstein said. "Without a huge investment in infrastructure, this nation could fall behind the rest of the developed world in the quality of our infrastructure. The $50 billion provided by the ‘Rebuild America Act’ will go beyond current projects and actually improve the productivity of our nation by allowing substantial new projects to go forward."

The bill will not increase the national debt. This funding is fully offset by three provisions that would:

  • Crack down on abusive corporate Enron-style tax shelters;
  • Prevent American corporations from avoiding paying U.S. taxes by moving to a foreign country; and
  • Extend customs user fees.

Furthermore, the bill requires these funds to be invested in projects that can award bids within 90 days of enactment. The bill also requires funds to be obligated within two years and that funding recipients continue their current investment levels, particularly with regard to infrastructure security. Finally, the bill allows recipients an extended period of time to meet their state and local match requirements.

Representatives Jerry Costello (D-IL), Lincoln Davis (D-TN), James Oberstar (D-MN) and other Democratic members of the Committee on Transportation and Infrastructure introduced a companion measure in the House on June 26, 2003.

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