This bill aims to alleviate the infrastructure crisis both nationally and specifically within New Mexico, where over 30% of roads are reported to be in poor condition. The establishment of a national bank would facilitate long-term loans for infrastructure improvements without increasing federal debt, as it would operate by repurposing existing treasury debt into preferred stocks. This structure is intended to expedite the financing process for essential projects, thereby addressing infrastructure issues effectively.
Summary
Senate Joint Memorial 1, introduced by Bill Tallman, urges the United States Congress to pass H.R. 4052, the National Infrastructure Bank Act of 2023. This legislation proposes the creation of a national infrastructure bank tasked with financing critical infrastructure projects across the nation, particularly addressing the significant infrastructure deficit noted in the American Society of Civil Engineers' report, which graded the U.S. infrastructure at a C-. The necessity for an investment of approximately five trillion dollars to restore and improve America's infrastructure underpins the bill's urgency.
Contention
Key points of contention surrounding SJM1 include the proposal for funding and how the national infrastructure bank would be managed. Critics may raise concerns regarding federal oversight and the efficiency of such a large-scale financial institution. However, proponents argue that this model has historical precedent in the United States, emphasizing that such a bank could parallel previously successful initiatives, which helped build much of the current infrastructure, thereby fostering confidence in the bank's potential effectiveness.