On the heels of New York City announcing its first issuance of Build America Bonds to fund public projects, Congressman Charles B. Rangel joined Treasury Assistant Secretary Alan Krueger Monday, Oct. 5 to celebrate the successful financing program.

Build America Bonds, written into the Recovery Act by Chairman Rangel and his Ways & Means Committee, grant state and local governments much-needed funding − at lower borrowing costs − for projects like the construction of schools and hospitals, the development of transportation infrastructure, and the upgrading of water and sewage.

The Metropolitan Transportation Authority has already issued $750 million in Build America Bonds, saving the public benefit corporation more than $46 million over the next 30 years.

"These bonds give State and local governments a new, direct injection of capital to jumpstart infrastructure projects that will create jobs and improve our cities and towns," Rangel said at a press conference just outside the 96th Street and Broadway station in Manhattan.

Rangel, joined also by MTA Finance Director Pat McCoy, thanked United Federation of Teachers President Michael Mulgrew, Ciy Council member Gale Brewer, New York State Senator Bill Perkins and members of the Transportation Workers Union Local 100 (TWU) for their support and attendance. He also thanked his fellow congressional colleagues for their hard work in ensuring that the bonds were included as part of last February's economic recovery package, including Ways and Means including Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA) and Rep. Earl Blumenauer. (D-ORE).

"Savings like these allow the MTA, and other transportation systems nationwide, to put more individuals to work and pursue more projects that enhance our public transportation system," Rangel said.

The Build America Bonds program allows issuers to sell taxable debt and collect a direct 35-percent subsidy from the Treasury Department, instead of a traditional tax exemption. This opens the market for local government bonds by appealing to a broader set of investors, like pension funds and European investors, who do not benefit from tax exemptions. Municipal bond market professionals have credited the Recovery Act with reviving their market.

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