Rangel-Inspired Program Will Authorize More Than $200 Million for New York.

Congressman Charles Rangel announced today that $25 billion in bond authority will be immediately available for State and local governments under the Recovery Zone Bonds program, including more than $200 million that will benefit hard-hit communities in New York.

Recovery Zone Bonds, created under the American Recovery and Reinvestment Act (ARRA) are targeted to areas particularly affected by significant job loss and will help State and local governments obtain capital for much needed economic development projects.

“I am pleased that the Ways and Means Committee in working with President Obama on the stimulus package was able to include the bond authority targeting communities hit hard by unemployment and economic distress,” said Congressman Rangel, who chairs the Committee.

The Congressman said he is looking forward to working with Mayor Bloomberg to make certain of a partnership between the local and federal governments. “The local government will play a pivotal role in administering the program in New York City,” Congressman Rangel said.

“My vision is that the Recovery Bond Program will have a synergistic effect by energizing all the other programs already in place in other federal agencies,” Congressman Rangel said.

"Recovery Zone Bonds are an essential step towards revitalizing the economic health of our communities," Congressman Rangel said. "These bonds will help finance improvements in infrastructure, job training and education that will continue our economic recovery and help families in hard-hit communities gain the tools necessary to get back on their feet and build a brighter future. Secretary Geithner and the Treasury Department should be commended for their quick implementation of this economic recovery program."

The Ways and Means Committee developed the Recovery Zone Bond program under the leadership of Chairman Rangel and coordinated with Congressional leadership and President Obama to ensure its inclusion the ARRA.

According to details released by the Treasury Department today, the program includes $25 billion for two new types of Recovery Zone Bonds: $10 billion for Recovery Zone Economic Development Bonds and $15 billion for Recovery Zone Facility Bonds. Recovery Zone Economic Development Bonds are another type of taxable Build America Bond that allow State and local governments to obtain lower borrowing costs through a new direct federal payment subsidy, for 45 percent of the interest, to finance a broad range of qualified economic development projects, such as job training and educational programs. Recovery Zone Facility Bonds are tax-exempt private activity bonds that can be utilized by private businesses in designated areas for a range of projects.

*The Treasury Department has also detailed the bond volume cap allocations at the local level for counties and large cities. The total State allocations and the complete list of direct county and large city allocations can be viewed by clicking here.

Click here for more information on Ways and Means work on the American Recovery and Reinvestment Act of 2009.

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