Move America Act of 2019

The Move America Act of 2019, HR1508, was referred to the House Committee on Ways and Means on March 5, 2019. This bill proposes to expand the types of infrastructure projects eligible for tax-exempt private activity bonds (PABs) and increase the national cap on these bonds. The expansion of PABs makes it easier and cheaper for private entities to finance infrastructure projects, thereby increasing the total addressable market for private sector participation in infrastructure development. While the bill does not appropriate direct funding, it creates a more favorable financing environment for private investment in projects such as airports, ports, highways, and broadband. The money trail for this legislation involves the increased issuance of tax-exempt private activity bonds. These bonds are purchased by institutional investors and individuals seeking tax-advantaged income. The proceeds from these bonds are then used by private companies to fund eligible infrastructure projects. Companies involved in the design, construction, and operation of transportation and communication infrastructure stand to benefit. Specific companies that could see increased project opportunities include large engineering and construction firms, as well as private operators of infrastructure assets. However, without specific project allocations or direct contracts, identifying precise beneficiaries at this stage is speculative. Historically, similar expansions of private activity bonds have led to increased investment in the targeted sectors. For example, the American Recovery and Reinvestment Act of 2009 included provisions that expanded PABs for certain projects, leading to a measurable increase in private infrastructure investment over the subsequent years. While direct stock market reactions to PAB expansions are often diffuse and not tied to specific dates, companies like AECOM ($ACM) and Fluor Corporation ($FLR) have historically seen increased project backlogs during periods of enhanced infrastructure financing. The current bill's referral to committee in 2019 means it did not advance in that legislative session, limiting its immediate market impact. Specific winners would be companies capable of undertaking large-scale infrastructure projects, such as engineering and construction firms. Losers are not directly identifiable, as the bill primarily expands opportunities rather than restricting them. The bill's status as 'referred to committee' in 2019 indicates it did not progress further in that legislative cycle. For future action, similar legislation would need to be reintroduced and pass through committee, then the full House and Senate, before becoming law.