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The Obama Administration released its legislative package — the American Jobs Act of 2011 (AJA) — in line with his speech last week on the need to spur job growth.  The package contains several job-creating proposals, including direct spending in several infrastructure sectors as well as through a proposal to create a bank that would fund transportation, water/wastewater, and energy projects.  NACWA is pleased that the Administration continues to recognize the importance of water-related infrastructure investment as part of stimulating job growth, in line with the Association’s Fall campaign to ensure clean water included in the proposal.  Last week, NACWA sent a letter and accompanying White Paper to President Obama and Congress laying out, in detail, how clean water investment can spur the economy, create jobs, and improve the environment and public health.  However, as this Alert points out, there is still significant work to be done and NACWA will be looking to its membership for strategic input into next steps.

Specifically, the President’s proposal includes the following infrastructure-related investments:

• $25 billion for school construction;
• $50 billion for transportation projects, including highways and rail projects;
• $15 billion to refurbish abandoned homes;
• $10 billion for a national infrastructure bank, being called the American Infrastructure Financing Authority (AIFA).

The AIFA is intended to provide direct federal funding assistance for, and catalyze significant private investment capital into, public infrastructure projects, including water and wastewater infrastructure.  The proposal is based on legislation championed by Congresswoman Rosa DeLauro (D-Conn.) and Senators John Kerry (D-Mass.) and Kay Bailey Hutchison (R-Texas).  In addition to water infrastructure projects, transportation and energy infrastructure projects would also be eligible to receive AIFA funding through a competitive application process.  The AIFA proposal allocates $10 billion in direct loans and loan guarantee financing in the first two fiscal years of the program.  The funding levels available ramp up to $50 billion by the ninth year.  These amounts could potentially leverage up to ten times the amount of direct capital invested making it possible for $100 billion to be made available for infrastructure investments even in the early years.  This could grow to $500 billion in the outer years of the program, depending on its success.  All funds would be made available in the form of loans.

Including water infrastructure projects as part of the mix of projects eligible for financing under a national infrastructure bank is an important step in the national debate about the critical role that water infrastructure plays in revitalizing the economy and communities. NACWA is digesting the contents of the package and analyzing whether there are opportunities for additional resources that could be available for water and wastewater infrastructure investments in the proposal.  It is unclear whether a national infrastructure bank will have broad appeal.  Congressman John Mica, Chair of the House Transportation and Infrastructure Committee, has already indicated his initial opposition to the concept given that states already have infrastructure banks and these could be in competition with a national version.  NACWA is meeting with key Senate staff this week to discuss Obama’s proposal and gauge Congressional reaction.  Updates on developments from these meetings will be included in Friday’s Clean Water Current and other Association publications.

NACWA also believes this development demands member feedback.  The Association will be reaching out directly to its leadership as it gathers additional information but in the meantime we would greatly appreciate your thoughts on the Administration’s legislative proposal, including what the appropriate funding mechanism should be for water infrastructure and whether you believe NACWA should pursue additional or alternative funding opportunities as the legislation advances.  Please send your thoughts to Hannah Mellman, NACWA’s Legislative Manager, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call her at 202-833-2672 to discuss this effort further.  As always, we welcome your feedback and input as we develop a legislative strategy for this effort.