(Washington, DC)  --  Congressman Dennis J. Kucinich (D-OH) and Congressman Steven LaTourette (R-OH) today announced bipartisan legislation to improve critical infrastructure in Ohio, and nationwide. The bill, The Rebuilding America’s Infrastructure Act of 2006, would create a low-cost federal financing mechanism to administer zero-interest loans to localities.  States choose which projects to fund with the loans according to their specific needs.

The bill, authored by Congressman Kucinich and Congressman LaTourette, would create the Federal Bank for Infrastructure Modernization (FBIM).  The bank, as an extension of the Federal Financing bank under the Treasury Department, would establish zero interest mortgage loans for states and local governments to use to fund specific projects.  The loans would bear a small fee of one-quarter of one percent of the loan principle to cover the administrative costs of the FBIM. The bill would not require Congress to appropriate any finds.

"Our infrastructure needs are many and dollars are scarce,” stated Congressman LaTourette.  “This bill will help communities do big-ticket projects for wastewater and water plants, roads and bridges.”

The FBIM would be funded by purchasing the subsidized mortgage loans.  These mortgages would take the place of the central bank’s purchases of Treasury securities and be integrated into the bank’s normal open market operations.  On average, the FBIM would sell approximately $50 billion in mortgage loans every year.

“This bill is not just an infrastructure improvements bill but a job bill as well,” stated Congressman Kucinich. “The Cleveland area, and big and small cities across the country, would benefit greatly from this large federal investment.”