Press Releases

(As prepared for delivery)

The gradual decline in our federal infrastructure investment has resulted in an alarming number of crumbling roads and bridges and an undersupply of affordable low-income housing and community-based investments. In addition, structural inequities within our tax code are exacerbating these infrastructure deficiencies within historically marginalized communities. All the while, our energy and transportation frameworks continue to rely on fossil fuels and other outdated technologies, putting America behind in its Paris Climate Agreement obligations.

Our inadequate infrastructure networks will limit the economy's growth if we don't act – a trajectory we cannot afford, particularly as we continue to dig out from the COVID recession. Now is the moment that we can and must address the towering economic challenges our nation faces. We have the opportunity to make smart investments that create good jobs, protect against costly environmental disasters, and fortify our economy.

Dating back to the industrial era, investment in public infrastructure resources has driven our nation’s economic potential. From FDR and the New Deal, to President Eisenhower and the Interstate Highway Act, to President Obama and the 2009 American Recovery and Reinvestment Act, major federal infrastructure initiatives stimulated economic growth, led to modernized energy and transportation networks, and created well-paying middle-class jobs.

And under the leadership of President Biden, we again have the opportunity to propel our country forward – by not only updating outdated infrastructure networks, but also with investments in reducing carbon emissions and actions to mitigate the threat of climate change.

Today, we will hear from an expert panel of witnesses on the tools within the tax code that can spur investments in all facets of our nation’s infrastructure, including surface transportation, energy generation, water, housing and public buildings, and beyond.

I’m encouraged to see that there is already strong interest among our Committee members to strengthen and expand the green energy and energy efficiency incentives within the tax code. It’s in the best interest of all Americans that the tax code encourages investments in renewable energy and rewards individuals that shift their consumption to zero emissions vehicles and more efficient homes. These incentives are an investment in preserving a healthy planet for our children.

I thank Representative Mike Thompson for his work on a proposal – supported by all Committee Democrats – that will drive aggressive emissions reduction benefitting all communities, especially disadvantaged communities, and will support the creation of good jobs that pay well.

Many of the investments needed to revitalize our nation’s infrastructure will come from state and local governments. Through tax exempt and federally supported bond financing mechanisms, Congress can support these crucial state and local investments by lowering up-front capital costs and broadening the pool of potential investors. Last Congress, the House passed a number of bond financing improvements that this Committee authored, including a permanent revival of Build America Bonds, reinstatement of advance refundings, and a holistic expansion of private activity bonds. I'm optimistic that this Committee will again secure the inclusion of a similar suite of provisions in any infrastructure financing legislation that comes to the floor.

Too often, low-income communities and communities of color are excluded from realizing the benefits of tax legislation. I am pleased that this hearing will provide us an opportunity to explore the success of community development tax incentives. These tax incentives are proven to drive targeted investment in underserved communities.

For example, since its inception in 1980, the Low Income Housing Tax Credit has been directly responsible for the construction of millions of low-income rental housing units. Similarly, the New Markets Tax Credit provides accredited non-profit organizations with resources to make community development initiatives economically viable and sustainable. The successes of these incentives should serve as a model for developing tax tools designed to provide a direct benefit to the communities that are often left behind.

We must also examine how the inequities within our tax code limit tribal governments’ ability to leverage tax-exempt financing and other tax tools. Barriers such as the “essential government services test” prevent tribal authorities from deploying tax-exempt debt proceeds for uses otherwise available to state and local governments. This asymmetry prevents tribal governments from acquiring financing for critical government services like housing and healthcare.

We’re holding this hearing at a time when members across the country - from both sides of the aisle - are hearing the calls from their constituents for significant infrastructure investment. Now is the time to move landmark legislation that scales to the magnitude of our nation’s challenges.

I applaud President Biden for his initiative and leadership in putting forward the American Jobs Plan. His proposal calls on Congress to pass infrastructure legislation that will not only modernize our nation’s broadband, energy, and transportation systems but also makes a significant down payment on combatting climate change. And all of these public investments will create good, well-paying jobs to support the middle class and strengthen our economy.

Finally, I’m hopeful that today’s conversation will help lead us to bipartisan areas of agreement. I’m eager to hear from my Republican colleagues on their infrastructure priorities, and constructive proposals to build on this Committee’s work.

With that, I will recognize Ranking Member Brady for the purpose of an opening statement.

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