WASHINGTON — Congress should create two types of direct-pay transportation bonds to help states and localities build and repair crumbling infrastructure, market participants told the Senate Environment and Public Works Committee during a hearing Tuesday.

The two types of new bonds would be variations on programs that Congress created in the stimulus law: Build America Bonds that provide a federal subsidy payment to issuers equal to 35% of their interest costs, and so-called qualified tax-credit bonds, which in the direct-pay mode provide issuers with federal payments equal to up to 100% of their interests costs.

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