Treasury Announces Allocation of $522 Million in Recovery Zone Bonds for Maryland

Washington, DC - Congressman Steny H. Hoyer (D-MD) applauded the Administration's announcement today that the U.S. Treasury Department will issue approximately $522 million in additional bond authority for the State of Maryland under the Recovery Zone Bonds program, created by the American Recovery and Reinvestment Act. The program will target areas affected by job losses and will help local governments obtain financing for much needed economic development projects - such as public infrastructure development - at lower bowering costs.

"This additional funding authority will enable Maryland to make significant investments that will benefit communities most damaged by the weakened economy," stated Rep. Hoyer.  "Investments like these will help the economy by stimulating job creation and improving infrastructure in critical projects."

The Recovery Act included $25 billion nationwide for two new types of Recovery Zone Bonds: $10 billion for Economic Development Bonds, which will allow state and local governments to obtain lower borrowing costs to finance a broad range of qualified economic development projects such as job training and educational programs; and $15 billion for Facility Bonds, a traditional tax-exempt private activity bond which may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects. Maryland could receive as much as $208 million in Recovery Zone Economic Development Bonds and $313 million in Recovery Zone Facility Bonds.

"Creating the conditions for economic recovery requires addressing the challenges facing state and local governments," said Treasury Secretary Tim Geithner.  "State budgets have been scaled back and local services cut at a time when they are most needed.  Turning things around requires innovative strategies, which is what the Recovery Act has provided in the form of the Recovery Zone Bonds.  The innovative financing tools provided by Recovery Zone Bonds will help state and local governments obtain the financing needed to revitalize our communities."

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