Senate Passes Economic Recovery Package Including Kerry Provisions to Create Jobs

Press Release

Kerry Wins Inclusion of $2 Billion to Modernize Rail System, Create Jobs

A provision authored by Senator John F. Kerry (D - Mass.) to modernize our transportation system and create hundreds of desperately needed jobs was included in the final version of the economic recovery package that passed the Senate today by a vote of 61 to 37. Kerry is a senior member of the Senate Finance Committee where the legislation originated.

"The high speed rail provision will create jobs, fix our crumbling infrastructure, and move our rail systems up to par with the high-tech rail systems across the globe," said Kerry. "This is a job creator now and an investment that will continue to pay off tomorrow.

"This bill is one big step toward digging out of a deep, deep economic hole and it's an investment in the jobs and relief Americans need to break this downward cycle," Kerry continued. "This is a down payment towards a comprehensive solution that addresses the economic, financial, housing, and credit crises. I look forward to working with our House colleagues to reconcile our two plans and send a bill to the President as quickly as possible.

"It said everything about the importance of this moment that Sen. Kennedy returned to the Senate to cast his vote for a new economic direction," Kerry added. "Ted knows the importance of this legislation for Massachusetts and our country, and once again he is always in the thick of the fight when peoples' jobs are on the line. After a week of delay and debate and a legislative process that sometimes frustrates us and enrages the country, Teddy's presence summed up what really matters and what's really worth fighting for."

The bill includes $2 billion for grants for investments in high-speed rail corridors. The rail provision allows transit projects to receive tax-exempt financing and requires that high-speed trains must be reasonably expected to reach 150 miles per hour. The bill also includes a provision modeled after Kerry's legislation that would exempt interest from private activity bonds from the Alternative Minimum Tax, including interest from high-speed rail bonds. This change would make bonds more attractive to investors.

Last November, Senators Kerry and Specter introduced the High-Speed Rail for America Act of 2008, which would transform America's outdated and underfunded passenger rail system into a world class system.

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