Moran Announces $10 million in Direct Allocations of Recovery Zone Bonds

Washington, D.C., June 12th – Congressman Jim Moran, Virginia Democrat, today announced the award of more than $10 million in economic recovery assistance to Falls Church, Fairfax County, Arlington County, and the City of Alexandria.

The assistance, awarded by the U.S. Treasury under the American Recovery and Reinvestment Act includes credit awards to each of the Northern Virginia jurisdictions under the “Recovery Zone Bonds” program. Recovery Zone Bonds are targeted to areas particularly affected by job loss. They are intended to help local governments obtain financing for much needed economic development projects, such as public infrastructure development, at lower borrowing costs. 

“Recovery Zone Bonds will allow Northern Virginia’s local governments to obtain the necessary financing to soften some of the difficult budget cuts brought by the recession. Just as the credit crisis affected millions of small businesses, it made the cost of capital financing for state and local governments exceptionally expensive, driving up the cost of building and repairing schools, roads, jails, and critical economic development initiatives. Addressing this issue was an important priority for Virginia’s cities and counties. I will be working with the Obama Administration to continue providing this type of assistance so that our economy recovers as quickly as possible.”

The stimulus law included $25 billion for two new types of Recovery Zone Bonds – $10 billion for Recovery Zone Economic Development Bonds and $15 billion for Recovery Zone Facility Bonds.  Recovery Zone Economic Development Bonds allow state and local governments to obtain lower borrowing costs through a new direct federal payment subsidy to finance a broad range of qualified economic development projects, such as job training and educational programs. Recovery Zone Facility Bonds may be used by private businesses in designated recovery zones to finance a broad range of capital projects such as bridge construction, road repair and public transit.

--30--