Van Hollen and Edwards Applaud Treasury Release Of Over $500 Million In Recovery Zone Bonds For Maryland
Press Release
Today, the U.S. Treasury Department announced that $25 billion in bond authority was made available under the Recovery Zone Bonds program, $522 million of which will go to the state of Maryland. Created by the Recovery Act, Recovery Zone Bonds are targeted to areas particularly affected by job loss and will help local governments obtain financing for much needed economic development projects, such as public infrastructure development, at lower borrowing costs.
"As a result of this recession, state and local governments have made significant cuts that limit the services they can provide to their citizens at a time when they are needed most," said Van Hollen. "These bonds, provided by the Recovery Act, will help state and local governments get the financing they need to invest in our communities and turn our economy around."
"These funds from the American Recovery and Reinvestment Act passed by Congress and signed into law by President Obama will help Prince George's and Montgomery Counties finance a variety of development programs they need to ignite economic growth in our communities," said Rep. Edwards. "These bonds will allow our state and local governments to fund projects critical to the current and future well-being of our residents through job training, educational programs, economic development projects, and public infrastructure development. I believe these types of programs are the most effective uses for Recovery Act funding and I urge our officials in Prince George's and Montgomery Counties to act quickly to use these funds."
There are two types of bonds created through this program. Recovery Zone Economic Development Bonds are a type of taxable Build America Bond that allows state and local governments to obtain lower borrowing costs through a new direct federal payment subsidy, for 45 percent of the interest, to finance a broad range of qualified economic development projects, such as job training and educational programs. Recovery Zone Facility Bonds are a type of traditional tax-exempt private activity bond that may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects.
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