BRADENTON, Fla. – Build America Bonds helped issuers of all sizes save on financing projects, but sequestration could squeeze the budgets of those that dedicated the subsidy to debt service like Kentucky’s McCracken County School District.

The district, which sold BABs in 2010 to finance a new high school to consolidate three facilities more than 50 years old, is believed to be the first in the Bluegrass State to unwind its deal because of the 8.7% cut in the 35% interest subsidy the government originally promised to pay.

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