Section 1 Short title
This Act may be cited as the “Repairing Our Aging Roads Act”.
Repairing Our Aging Roads Act
A BILL
To authorize the Secretary of the Treasury to issue Transportation Bonds to fund transportation projects in each State, and for other purposes.
Sec. 2 Transportation Bonds and Trust Funds
Authority To issue Transportation Bonds— Section 3102 of title 31, United States Code, is amended by adding at the end the following new subsection:
“(f) Transportation Bonds
“(1) In general—The Secretary is authorized to issue bonds under this section, to be known as “Transportation Bonds”. Transportation Bonds shall be issued for each of the 50 States and shall be separately identified with respect to each State.
“(2) Limitation—The aggregate amount of Transportation Bonds issued with respect to each State shall not exceed $2,000,000,000.
“(3) Form—Except as provided in paragraph (3), the bonds authorized by paragraph (1) shall be in such form and denominations, and shall be subject to such terms and conditions of issue, conversion, redemption, maturation, payment, and rate of interest as the Secretary may prescribe.
“(4) Maximum rate of interest—The rate of interest on any bond authorized by paragraph (1) shall not exceed the rate of interest which is 0.25 percentage points less than the rate of interest which would apply with respect to an otherwise substantially identical bond authorized under subsection (a).”
Transportation Trust Funds—
Establishment of Trust funds— There is established in the Treasury of the United States 50 separate trust funds, consisting of such amounts as may be appropriated, credited, or transferred to each such trust fund as provided in this section or other provision of law. Such trust funds shall be established with respect to each of the 50 States and each shall be known as the “State Transportation Trust Fund” (where the name of the corresponding State is substituted for “State”). For purposes of this subsection, any reference to “each State Transportation Trust Fund” shall be treated as a reference to each of the 50 trust funds established under this paragraph.
Transfers to trust funds— There are hereby appropriated to each State Transportation Trust Fund amounts equivalent to all revenues derived from the sale and issuance of Transportation Bonds issued under section 3102 of title 31, United States Code, with respect to the corresponding State.
Expenditures from trust funds— Amounts in each State Transportation Trust Fund shall be available, without need of further appropriation, for monthly disbursement to the corresponding State with respect to such Trust Fund. Such monthly disbursements shall be used by the corresponding State only for purposes of making expenditures to construct or improve transportation infrastructure in the corresponding State.
Prevention of State participation in Transportation Bonds program—
In general— The Secretary of the Treasury shall not issue any Transportation Bond under section 3102(f) of title 31, United States Code, as added by subsection (a), to any State or political subdivision thereof.
Denial of State benefit from indirect acquisitions— Appropriations to any State Transportation Trust Fund under subsection (b)(2) shall be reduced by the amount of any revenues derived from the sale or issuance of any Transportation Bond to any person if such bond was acquired by such person with funds provided directly or indirectly by any State or political subdivision thereof.
Sec. 3 Offsetting reduction in discretionary spending
Calculation— On the last day of the first quarter during which Transportation Bonds are issued under section 3102(f) of title 31, United States Code (as added by subsection (a)), and on the last day of each quarter thereafter, the Secretary of the Treasury shall calculate the dollar amount of bonds issued during any such quarter.
Rescission— On the first day of the quarter immediately following any quarter with respect to which a calculation is made under subsection (a), there is hereby rescinded an amount equal to the calculated dollar amount of—
the budget authority provided for any discretionary account in any appropriation Act for the fiscal year in which such first day occurs; and
the budget authority provided in any advance appropriation for any discretionary account in any prior year appropriation Act.
Proportionate application— Any rescission made by subsection (b) shall be applied proportionately—
to each discretionary account and each item of budget authority described in such subsection; and
within each such account and item, to each program, project, and activity (with programs, projects, and activities as delineated in the appropriation Act or accompanying reports for the relevant fiscal year covering such account or item, or for accounts and items not included in appropriation Acts, as delineated in the most recently submitted President's budget).