The House has approved an extension of the popular “Build America” Bonds program but with a cut in the federal subsidy. The extension, which would carry the bonds program until April 2013, is part of a broader small-business and infrastructure measure the House passed on March 24. There has been no action yet in the Senate on the legislation.
The bonds program was established under the 2009 American Recovery and Reinvestment Act and is due to expire on Dec. 31. The bonds fund state and local infrastructure work. Since the program was launched in April 2009, the bonds’ volume has climbed rapidly, to $78 billion, or about 20% of the municipal-bond market, as of Feb. 28, the Treasury Dept. says.