New capital projects, such as school and hospital construction, transportation infrastructure, and water and sewer upgrades, are being funded by either Build America Bonds or the 2010 School Bond Allocation program, Recovery-funded financing tools that allow state and local governments to borrow money at lower costs.
In a recent update on the progress of the Build America Bonds, the Department of the Treasury noted that since the program's launch on April 3, 2009 and February 28, 2010:
There have been $78 billion in Build America Bond issuances
There have been a total of 929 separate issues of Build American Bonds by local or state governments in 47 states; and
Build America Bonds now constitute about 20% of the municipal bonds market.
To see a state-by-state breakdown, read Build America Bonds Update
Source: Department of the Treasury
For the School Bond Allocation program, Treasury and the Department of Education recently announced $11 billion to underwrite "the construction, rehabilitation or repair of a public school facility or for the acquisition of land where a school will be built."
For each state's individual allocation, see the full Treasury and Education announcement.
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