WASHINGTON — The Obama administration will recommend making permanent the Build America Bonds program in its fiscal 2011 budget proposal Monday, a Treasury spokesperson said Friday night.

The plan would reduce the subsidy from 35% to 28% beginning Jan. 1, 2011, but would greatly expand the program’s reach to include refundings, working capital, as well as permitting nonprofit hospitals and universities to issue the debt. The lower subsidy is intended to make the program’s cost equivalent to the cost to the federal government of traditional tax-exempt bonds.

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