State Infrastructure Spending and the Federal Stimulus Package

Ellen Hanak

National Tax Journal, 2009, vol. 62, issue 3, 573-83

Abstract: Nearly one-quarter of the $787 billion in the American Recovery and Reinvestment Act of 2009 is devoted to spending and tax credits for infrastructure investments. The sums available (about six months of public infrastructure spending) and the requirements to spend on “shovel ready” projects mean that this program is a short-term boost, rather than an opportunity to create broad based change in the U.S. infrastructure profile. Some key exceptions are energy, broadband technology, and high speed rail, where federal spending can break new ground. Looking ahead, the availability of stimulus funds should not distract attention from infrastructure finance reform, particularly in transportation.

Date: 2009
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