Kerry Wins Inclusion of High Speed Rail Provision in Stimulus [View All]

[ProSense]

January 27, 2009

Kerry Wins Inclusion of High Speed Rail Provision in Stimulus

Kerry Says Job Creation from Infrastructure Investment Key to Economic Recovery

WASHINGTON, D.C. – Senator John Kerry, a senior member of the Finance Committee, today applauded the inclusion of his high-speed rail provision in the Senate economic recovery package. Kerry’s provision would modernize our national transportation system while creating hundreds of desperately needed jobs.

“Job number one is creating jobs rapidly and putting people to work as we fix our economy, and the high speed rail provision we have secured in the stimulus plan will create jobs, help fix our crumbling infrastructure system, and help move our rail systems up to par with the high-tech rail systems across the globe,” said Senator John Kerry. “I’m grateful to Chairman Baucus and my colleagues on the Finance Committee for supporting this effort.”

The rail provision included in the stimulus package allows transit projects to receive tax-exempt financing and requires that high-speed trains must be reasonably expected to reach 150 miles per hour. The bill also includes a provision modeled after Kerry’s legislation that would exempt interest from private activity bonds from the Alternative Minimum Tax, including interest from high-speed rail bonds. This change would make bonds more attractive to investors.

In November, Sens. Kerry and Specter introduced the High-Speed Rail for America Act of 2008, which would transform America’s outdated and underfunded passenger rail system into a world class system.