Senate Bill Would Hinder Sale, Lease of Transportation Assets

The ability of state and local governments to raise cash by  leasing or selling transportation assets to private investors would be slowed down, if not killed altogether, under a bill introduced by Sen. Richard Durbin (D-Ill.).

The measure, introduced Thursday, would require federal liens be put on all transportation facilities that have received more than $25 million in federal funding and are valued at more than $500 million.

Before a lease or sale could be executed with a private investor, the state or local government would have to repay the federal funds used to build or maintain that asset.

When private investors “take control of an airport, road or other transportation asset for decades — sometimes as long as 99 years — the federal taxpayer is often left holding the bag,” Durbin said.

“My bill will ensure that the interests of the federal taxpayer are protected when a private company seeks to operate a public asset for a profit,” he said in a statement.