Not the Macquarie Model: Using U.S. Sovereign Wealth to Renew America's Civil Infrastructure

A new America 2050 policy paper proposes a novel approach to funding a comprehensive reinvestment in the infrastructure of the United States.  It proposes moving from tax-supported public services to a revenue-supported enterprise system. The report, titled "Not the Macquarie Model:  Using U.S. Sovereign Wealth to Renew America's Civil Infrastructure," is authored by Richard Little, director of the Keston Institute for Public Finance and Infrastructure Policy.

The core idea of the paper's proposal is to utilize a combination of public and institutional pension funds and Social Security Trust Funds to provide equity and debt shares to fund public works projects.  A sustainable revenue stream, such as imposed tolls on highways, would be used to pay returns to equity for investors and loans.

The proposal suggests that a National Infrastructure Investment Fund, which was initially proposed in 1926 and revisited with The National Infrastructure Bank Act of 2007, could be the vehicle to administer such a program.

Download the report.