Obama Seeks Permanent, Expanded Build America Bond Program

Bloomberg reports:

President Barack Obama will ask Congress to make permanent the temporary U.S. program under which state and local governments issue so-called Build America Bonds, according to an administration official.

Obama will propose expanding the eligibility of the bonds to include original financing for capital projects when he submits his 2011 budget to Congress tomorrow, according to the official, who requested anonymity.

Under the Build America program, part of the economic stimulus package Obama signed into law last February, the federal government provides a 35 percent rebate on issuers’ interest costs. That would go down to 28 percent under the proposal in the president’s budget, according to a Treasury Department official who spoke on condition of anonymity.

Some people don't believe in federalism.