WASHINGTON -- The White House on Friday proposed a new “Rebuild America Partnership” program that would allow direct-pay American Fast Forward bonds to be used for any project that can currently be financed with tax-exempt private activity bonds.

The AFs bonds would subject to a 28% subsidy rate under which the Treasury would pay issuers 28% of their interest costs. The AFF bond-financed PAB projects would still be subject to state volume caps.

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