June 12, 2009

Delegation Announces RI to Receive Over $250 Million in Federal Recovery Bond Assistance

WASHINGTON, DC – Rhode Island’s Congressional delegation today announced that the U.S. Department of the Treasury is making over $151 million in Recovery Zone Facility Bonds and over $100.8 million in Recovery Zone Economic Development Bonds available to cities and towns throughout Rhode Island.  The money will be provided through the American Recovery and Reinvestment Act of 2009, which U.S. Senators Jack Reed (D-RI) and Sheldon Whitehouse (D-RI) and U.S. Representatives Patrick Kennedy (D-RI) and Jim Langevin (D-RI) helped pass in February of 2009.


“These federal bonds will help state and local governments borrow at lower costs and invest in critical public infrastructure programs that will help create jobs and get our economy back on track,” said members of the Delegation in a joint statement.  “This is another example of the Recovery Act providing needed assistance to the state.  These bonds will make it more cost-effective for Rhode Island cities and towns to invest in job training, educational programs, and other economic development projects that will help fuel our state’s recovery and put Rhode Islanders back to work.”


The following communities will receive the bonds:


Area                                                 Recovery Zone Economic Development Bond             Recovery Zone Facility Bond  

Providence City, RI                          $13,878,000                                                                                        $20,818,000

Bristol County, RI                            $4,944,000                                                                                           $7,415,000

Kent County, RI                               $17,396,000                                                                                        $26,093,000

Newport County, RI                       $8,112,000                                                                                           $12,168,000

Providence County, RI                   $44,118,000                                                                                        $66,177,000

Washington County, RI                 $12,434,000                                                                                        $18,651,000

TOTAL:                                             $100.8 Million                                                                                   $151 Million


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 a type of traditional tax-exempt private activity bond that may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects.


Press Contact

Meaghan McCabe, (202) 224-2921