Skip to Content
Streetsblog Los Angeles home
Streetsblog Los Angeles home
Log In
Barbara Boxer

Strange Bedfellows Unite for Infrastructure Investment, Financing Tools

false

The “Tom and Rich Show” continued on Capitol Hill yesterday. Chamber of Commerce President Tom Donohue and AFL-CIO President Rich Trumka joined up for yet another event to show that business and labor, which don’t agree on anything, agree on a major infusion of federal investment for infrastructure.

They weren’t the only strange bedfellows there. Democratic Senator Barbara Boxer and Republican Congressman John Mica were practically holding hands through the entire press conference. Los Angeles Mayor Antonio Villaraigosa (a Democrat) found common cause with Mesa Mayor Scott Smith (a Republican).

“We have Democrats, Republicans, House, Senate, labor, business, lambs, lions, cats, dogs lying down together,” said Mayor Smith. “But there’s no apocalypse on the horizon. There’s a new dawn.”

In the past, even as other leaders in Boxer's party have called for an infrastructure bank, she has hesitated to join them, expressing support for a strengthened and expanded TIFIA loan program instead. She’s said that rather than create a new federal bureaucracy, she’d rather stick with an existing program with a proven track record. But now she’s saying those approaches can each work in conjunction. “They’re definitely complementary,” she said yesterday. “I’m supporting the infrastructure bank, a strengthened TIFIA, and the Wyden approach [to renew the Build America Bonds program]. They’re all complementary. It’s all about leverage, leverage, leverage.”

Tom Donohue’s persistent, at times strident calls for strong federal infrastructure investment have been at odds with the calls from the fiscal conservatives the Chamber helped elect. While many in the House are bracing for a smaller reauthorization bill than hoped for – possibly even smaller than the last one, passed in 2005 – and calling for increased public-private partnerships to pick up the slack, Donohue knows that’s not going to cut it. He’s calling for a big bill, funded with a significant increase in the gas tax, which everyone in the transportation industry supports and everyone in Washington shuns.

Chamber spokesperson Janet Kavinoky explained why public-private partnerships can’t just replace adequate federal investment.

“You have to have revenue to do transportation projects,” she said. “So even if you’re doing public-private partnerships, even if you’re offering leveraging tools, you still have to have revenue to pay interest on debt and to pay returns on equity. That’s true if you take out a mortgage, it’s true if you have a credit card, it’s true if you do infrastructure. So we don’t want people to lose sight of the fact that public private partnerships, TIFIA, banks aren’t a magic solution for everything. We still gotta have the money.”

The unlikely allies came together yesterday to promote a new initiative they’re calling America Fast Forward, a new plan building on L.A.’s proposed 30/10 program to use targeted federal investments to leverage locally-raised money for transportation projects. They say it will create jobs, support business, and empower local communities without adding to the nation’s deficit.

As part of this, more than 100 mayors from around the country, including Smith and Villaraigosa, sent a letter last week to the chairs and ranking members of four of the main Congressional committees that will be crafting the transportation bill. The letter asks them to support an expanded TIFIA loan program to provide “credit assistance for surface transportation projects of national and regional significance” as well as Qualified Transportation Improvement Bonds, which the federal government subsidizes by paying most or all of the interest cost in the form of tax credits for investors.

Stay in touch

Sign up for our free newsletter

More from Streetsblog Los Angeles

La Verne Celebrates Metro A Line Station, Foothill Extension to Open Soon

The new $1.5 billion 9.1-mile Foothill A Line extension construction is complete, and Metro is currently testing. Rail service is expected to debut in the next couple months.

June 21, 2025

Peaceful Protestors Take to Arcadia Park to Condemn ICE Raids

Demonstrators gathered Friday evening to demand an end to immigration raids in the San Gabriel Valley and beyond.

June 21, 2025

Brief Updates from June Metro Committee Meetings: Ridership, Service Changes, and More

Metro ridership is growing, Metro low income (LIFE) program analysis, service changes this Sunday, Metro prepares for World Cup soccer, and an upcoming report on ICE rail impacts

June 20, 2025

As ICE Continues Assault on Vulnerable Workers, Groups Launch Fundraiser to Assist Street Vendors

Empty streets and fears of being disappeared off street corners are hurting vendors' ability to stay afloat

June 19, 2025
See all posts