National infrastructure bank; urging Congress
This bill could catalyze substantial investments in Arizona's infrastructure, seeking to repair approximately 1,800 bridges at an estimated cost of $1.5 billion and to address a projected $30 billion shortfall for infrastructure needs over the next 25 years. The proposed NIB would collaborate with various levels of government to provide financing solutions without requiring new federal taxes or spending, deriving funds from repurposed treasury debt. It aims to create job opportunities primarily focused on construction and infrastructure-related roles, which are essential for state and local economies, especially in the wake of challenges presented by the COVID-19 pandemic.
SCM1001, introduced by Senator Mendez, is a concurrent memorial urging the United States Congress to establish a National Infrastructure Bank (NIB). The NIB is intended to address the critical infrastructure needs of the United States, which have been highlighted by the American Society of Civil Engineers (ASCE). According to their 2021 report, the nation received a C- grade overall, with Arizona specifically showing a grade of C. The proposal emphasizes the significant funding gap for infrastructure repair and development, estimated at over $4.5 trillion nationwide, with various sectors such as roads, bridges, and water systems requiring urgent attention.
While proponents support the establishment of an NIB as a necessary step for long-term infrastructure planning and economic growth, some concerns revolve around reliance on federal funding mechanisms. The memorial argues for the importance of not just infrastructure financing but also the inclusion of provisions ensuring that funding would prioritize disadvantaged communities and American jobs through mandates like the Davis-Bacon wages. However, as with any significant legislative proposal, there can be debates regarding the efficiency of such financial structures and the potential for bureaucratic challenges in implementation.