WASHINGTON – Treasury Department allocations of Recovery Zone Bonds to every state, county, and large municipality of the country were released this morning by the House Ways and Means Committee.
“Recovery Zone Bonds are an essential step towards revitalizing the economic health of our communities,” said committee chairman Charles B. Rangel, D-N.Y. “These bonds will help finance improvements in infrastructure, job training and education that will continue our economic recovery and help families in hard-hit communities gain the tools necessary to get back on their feet and build a brighter future. Secretary [Timothy] Geithner and the Treasury Department should be commended for their quick implementation of this economic recovery program.”
An 80-page document issued by the committee outlines the allocations of the $25 billion of Recovery Zone Bonds authorized by the stimulus law, which are targeted to areas that experienced the greatest increases in unemployment in 2008. Recovery Zone bonds consist of $10 billion of Recovery Zone Economic Development bonds, which are taxable debt that municipalities can sell and receive a cash payment from the federal government equal to 45% of their interest costs, and $15 billion of Recovery Zone Facility Bonds, which are a new category of private activity bond. A Treasury spokesperson said this morning that the department is in the process of releasing its own copy of the documents.
The Internal Revenue Service then released a 20-page notice outlining the program, listing the allocations, by state, and providing some interim guidance on how the bonds will work.