Text of H.R. 2521 Reveals Deep Flaws

The text of the proposed National Development Infrastructure Bank, H.R. 2521, became available online May 31, 2009. The proposed legislation deviates in substantive ways from its predecessor in the last Congress (H.R. 3401). Read the text of H.R. 2521 here or here.

Here is the distressing part:

1) POWERS- In order to carry out the purposes of the Bank as set forth in this Act, the Board shall be responsible for monitoring and overseeing infrastructure projects and have the following powers:
(A) To make senior and subordinated loans and purchase senior and subordinated debt securities ... the proceeds of which are to be used to finance or refinance the development of one or more infrastructure projects.
(B) To issue and sell debt securities of the Bank ...
(C) To issue public benefit bonds and to provide direct subsidies to infrastructure projects from amounts made available from the issuance of such bonds. ...
(F) To borrow on the global capital market and lend to regional, State, and local entities, and commercial banks for the purpose of funding infrastructure projects.

So this is new and not improved. This is still an unconstitutional attempt to siphon taxpayer dollars to spending projects with out Congress voting an appropriation. The clear text of Article 1, Section 9: "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.

The principle here is that our elected representatives should be voting on how public funds are spent. Under our constitution the Congress may not delegate that task to a committee. As for me, I want my elected representatives to have a voice in when and where Federal tax dollars are spent on infrastructure projects.

Please HELP in defeating H.R. 2521.

Reason Unreasonable?

A noted libertarian think tank, The Reason Foundation (based in Los Angeles), has apparently not read the texts of S. 1926 or H.R. 3431. Robert Poole, who is director of transportation policy and the Searle Freedom Trust Transportation Fellow at the Reason Foundation (a free market think tank he founded), published an essay on the reason.org website on Feb 3, 2009. You can read the entire essay here.
Mr. Poole wrote:

One of the hottest ideas in infrastructure politics these days is the proposal now in Congress for a National Infrastructure Bank. Presidential candidate Barack Obama, New York City Mayor Michael Bloomberg, and many other big-city mayors have all endorsed the idea, as have a number of trade associations favoring increased infrastructure investment. The leading vehicle is S. 1926, introduced last summer by Sen. Chris Dodd (D, CT) and Chuck Hagel (R, NE).
In short, I'm persuaded that there is a niche that an NIB could fill, to help this country take advantage of the huge pool of investment funds seeking to invest in U.S. infrastructure. {emphasis added}

To Mr. Poole's credit he does recommend some significant modifications to the structure proposed in S. 1926. This blogger doubts these modifications would overcome the constitutional objections.

I hope that Mr. Poole and the Reason Foundation come to their senses.

Liberal Think Tank Slobbering over Pres. Obama's Bank

A Washington D.C. progressive think tank inappropriately named the "Institute for America's Future" has gone in the bag for H.R. 2521 stating "The Campaign for America’s Future today cheered the introduction of the “National Infrastructure Development Bank Act of 2009,” by Reps. Keith Ellison, D-Minn., and Rosa DeLauro, D-Conn."

Apparently the constitution of the United States is not a barrier for Progressives.

The full text of H.R. 2521 is still not available on THOMAS.

NY Times Columnist in the Bag for H.R. 2521

Today on the NY Times website, a column by Op_Ed Columnist Bob Herbert was posted. This column is a superficial puff-piece designed to garner support for H.R. 2521. Read the complete article here.

Interestingly, Mr. Herbert's rationale for supporting H.R. 2521 is the loss of jobs during this recession and the poor prospects for a rapid recovery. Mr. Herbert refers to this in dire terms such as:

"catastrophic job losses of this recession"

and

"disastrous beyond belief"

as well as

"ominous long-term implications for American families"

and the obligatory running down of our common country

"America has become self-destructively shortsighted in recent decades... a nation that is speeding toward second-class status on a range of important fronts... We can’t put our people to work. We can’t educate the young. We can’t keep the infrastructure in good repair. It’s hard to believe that this nation could be so dysfunctional at the end of the first decade of the 21st century. It’s tragic."

None of which is accurate nor reason to violate the constitution.
This isn't the first time Mr. Herbert has puffed this government agency masqueraded as a "Bank". Read his column of February 23rd, 2009 here. I found it interesting that Mr. Herbert recognized the deficiency of President Obama's stimulus package. It is unfathomable to me how Mr. Herbert used that error in judgment to reach the following conclusion:

"You might ask where that money would come from. Great question. How about an infrastructure bank?
The current economic crisis is the perfect time to decide that we need to change some of the tired old ways of doing the people’s business. Senator Chris Dodd of Connecticut has offered a bill that would create an infrastructure bank. It would be a bipartisan entity that would streamline the process of reviewing and authorizing major projects. It would provide federal investment capital for approved projects and use that money to leverage private investment."

Of course, the text of S. 1926 makes it clear that no private investment would be involved. Rather, the bill would create a committee that would borrow money from private investment markets (money that must be paid back by the taxpayers; i.e. you and me) and use it to supplement local and state government funding. Referring to this unconstitutional government agency as a "public private partnership" strains credulity.
This blogger wonders if Mr. Herbert has actually read the proposed legislation.

New Life for Infrastructure Bank

Representative Rosa DeLauro (D-CT) has re-introduced President Obama's unconstitutional bank legislation into the current congress. Formerly identifed as H.R. 3401 The National Infrastructure Reinvestment Bank, the current incarnation is H.R. 2521 currently titled: "To facilitate efficient investments and financing of infrastructure projects and new job creation through the establishment of a National Infrastructure Development Bank, and for other purposes."

The bill was introduced with 26 sponsors:
Rep Berkley, Shelley [NV-1] - 5/20/2009
Rep Blumenauer, Earl [OR-3] - 5/20/2009
Rep Bordallo, Madeleine Z. [GU] - 5/20/2009
Rep Courtney, Joe [CT-2] - 5/20/2009
Rep Delahunt, William D. [MA-10] - 5/20/2009
Rep Driehaus, Steve [OH-1] - 5/20/2009
Rep Ellison, Keith [MN-5] - 5/20/2009
Rep Etheridge, Bob [NC-2] - 5/20/2009
Rep Farr, Sam [CA-17] - 5/20/2009
Rep Fattah, Chaka [PA-2] - 5/20/2009
Rep Frank, Barney [MA-4] - 5/20/2009
Rep Hirono, Mazie K. [HI-2] - 5/20/2009
Rep Israel, Steve [NY-2] - 5/20/2009
Rep Larson, John B. [CT-1] - 5/20/2009
Rep Massa, Eric J. J. [NY-29] - 5/20/2009
Rep McDermott, Jim [WA-7] - 5/20/2009
Rep McGovern, James P. [MA-3] - 5/20/2009
Rep Moore, Gwen [WI-4] - 5/20/2009
Rep Ryan, Tim [OH-17] - 5/20/2009
Rep Schakowsky, Janice D. [IL-9] - 5/20/2009
Rep Sutton, Betty [OH-13] - 5/20/2009
Rep Van Hollen, Chris [MD-8] - 5/20/2009
Rep Weiner, Anthony D. [NY-9] - 5/20/2009
Rep Welch, Peter [VT] - 5/20/2009
Rep Woolsey, Lynn C. [CA-6] - 5/20/2009
Rep Yarmuth, John A. [KY-3] - 5/20/2009

Complete text of the proposed legislation is not yet available on THOMAS. The bill has been assigned to the Subcommittee on Water Resources and Environment. Members of the subcommittee are:

For the Majority:
Eddie Bernice Johnson, Texas, Chairwoman
Thomas S. P. Perriello, Virginia
Jerry F. Costello, Illinois
Gene Taylor, Mississippi
Ellen O. Tauscher, California
Brian Baird, Washington
Timothy H. Bishop, New York
Russ Carnahan, Missouri
Steve Kagen, Wisconsin
Donna F. Edwards, Maryland
Solomon P. Ortiz, Texas
Phil Hare, Illinois
Dina Titus, Nevada
Harry Teague, New Mexico
Eleanor Holmes Norton, District of Columbia
Michael E. Capuano, Massachusetts
Grace F. Napolitano, California
Mazie K. Hirono, Hawaii
Harry E. Mitchell, Arizona
John J. Hall, New York
Parker Griffith, Alabama
Bob Filner, California
Corrine Brown, Florida
James L. Oberstar, Minnesota (ex officio)

For the Minority
John Boozman, Arkansas
Ranking Member
Don Young, Alaska
John J. Duncan, Jr., Tennessee
Vernon J. Ehlers, Michigan
Frank A. LoBiondo, New Jersey
Gary G. Miller, California
Henry E. Brown, Jr., South Carolina
Todd Russell Platts, Pennsylvania
Bill Shuster, Pennsylvania
Mario Diaz-Balart, Florida
Connie Mack, Florida
Lynn A. Westmoreland, Georgia
Candice S. Miller, Michigan
Robert E. Latta, Ohio
Anh "Joseph" Cao, Louisiana
Pete Olson, Texas

Please Contact your Representative and ask them to stop this unconstitutional government agency.