States and localities pay for a much larger share of transportation and water infrastructure projects than the federal government, but in recent years the total amount of money spent on these projects by all levels of government has declined significantly, according to a 62-page report issued this week by the Congressional Budget Office.

The CBO, which provides economic and budget analysis to Congress, also said in its report that tax-credit bonds are more cost-effective than tax-exempt bonds to finance infrastructure “because every dollar of federal revenue forgone through the tax credit is transferred to borrowers.”

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