WASHINGTON – The U.S. Department of the Treasury is making more than $251 million in federal stimulus bonds available to Rhode Island cities and towns that will allow them to borrow at lower costs to pay for infrastructure projects, the state’s Congressional delegation announced this morning.
The bonds – provided through the American Recovery and Reinvestment Act of 2009 – include $151 million in Recovery Zone Facility Bonds and $100.8 million in Recovery Zone Economic Redevelopment Bonds.
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Communities will be able to borrow less expensively “and invest in critical public infrastructure programs that will help create jobs and get our economy back on track,” said a joint statement issued today by Sens. Jack Reed and Sheldon Whitehouse, as well as Reps. Patrick J. Kennedy and James R. Langevin.
“These bonds will make it more cost-effective for Rhode Island cities and towns to invest in job training, educational programs and other economic development projects that will help fuel our state’s recovery and put Rhode Islanders back to work.”
Recovery Zone Economic Development Bonds are a type of taxable Build America Bond that allow state and local governments to borrow through a new direct federal payment subsidy, for 45 percent of the interest, to finance a broad range of economic development projects, such as job training and educational programs.
Recovery Zone Facility Bonds are a 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.
The following is how the bonds will be distributed:
Recovery Zone Economic Development Bonds
• City of Providence – $13,878,000
• Providence County – $44,118,000
• Kent County – $17,396,000
• Washington County – $12,434,000
• Newport County – $8,112,000
• Bristol County – $4,944,000
Recovery Zone Facility Bonds
• City of Providence – $20,818,000
• Providence County – $66,177,000
• Kent County – $26,093,000
• Washington County – $18,651,000
• Newport County – $12,168,000
• Bristol County – $7,415,000
