House Democrats to Introduce BAB Bill

Democrats on the House Ways and Means Committee plan to introduce Build America Bond legislation next week as part of a broader manufacturing jobs package, sources said. The bill, which is still being drafted, would either temporarily extend the program for one year or be made permanent. Under the BAB program, which was created in 2009 by the American Recovery and Reinvestment Act and expired at the end of 2010, issuers sold more than $181 billion of BABs and received subsidy payments from the federal government equal to 35% of their interest costs. However, Democrats including the Obama Administration, have not been successful in their several attempts to revive the BAB program since they expired. Republicans have said that BABs are dead on arrival claiming they generated high fees for underwriters.

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