National Infrastructure Bank
The establishment of a national infrastructure bank as proposed in SJM1 would transform how infrastructure projects are funded, providing up to four trillion dollars in low-interest loans specifically for infrastructure improvements. This approach aims to alleviate the reliance on federal appropriations while enabling investment in critical areas such as water, roadways, and broadband access. Proponents believe that this bank will catalyze economic growth by creating an estimated 25 million jobs, focusing on equitable hiring practices, and ensuring project labor agreements that benefit local economies and disadvantaged business enterprises. The support from various local organizations and labor unions underscores the broad consensus regarding the need for this bank.
SJM1 is a Senate Joint Memorial from the New Mexico legislature that urges the United States Congress to pass H.R. 3339, the National Infrastructure Bank Act of 2021. This memorial highlights the urgent need for significantly improved infrastructure across the United States, citing a 2021 report by the American Society of Civil Engineers that graded the nation's infrastructure at a C-. It emphasizes the financial shortfall in infrastructure funding, stating that trillions are needed to address current and future projects, as many critical systems, including roads and bridges, are in poor condition, particularly in New Mexico. The bill advocates for the creation of a national infrastructure bank which could help finance projects via partnerships with local and state entities.
Despite the potential benefits, there are points of contention related to the bill's implementation and oversight. Concerns include whether such a bank could effectively manage the financial aspects of such substantial loans and ensure that they are distributed fairly and efficiently. Moreover, critics may voice apprehensions regarding federal-level management versus local control; debates may arise over how projects are prioritized and which regions receive funding. Furthermore, there may be skepticism regarding the effectiveness of the proposed bank in enacting real change versus merely creating another bureaucratic layer in governmental funding processes.