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Cummings Introduces Bill to Provide Bonding Assistance to DBE's
New legislation would help businesses owned by minorities, veterans, and women
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Washington, DC—Today, Congressman Elijah E. Cummings (D-Md.), a senior member of the House Committee on Transportation and Infrastructure, introduced H.R. 2991, the Department of Transportation Bonding Assistance Authority Act of 2009, to help level the playing field for businesses owned and controlled by socially and economically disadvantaged individuals such as ethnic minorities, veterans, and women.
“By their very nature, disadvantaged businesses are faced with seemingly endless and often unnecessary obstacles to success, and we must do everything we can to even the playing field so these companies can compete” Congressman Cummings said. “This legislation would provide the opportunity for disadvantaged businesses to receive bonding assistance, removing one of the largest hurdles limiting their efforts to bid on federally supported transportation projects.”
Lack of access to bonding is one of the largest hurdles that disadvantaged business enterprises (DBE's) face as they contemplate bidding on federally supported transportation projects, including those created under the American Recovery and Reinvestment Act. Particularly in the current economic climate, many DBE's are unable to obtain bid, performance, and other types of bonds due to limited capital availability.
The Cummings legislation would significantly expand the U.S. Department of Transportation’s (USDOT) authority to guarantee bonds issued to DBE's and authorize the appropriation of up to $50 million per year to fund the program. Additionally, the bill would enable up to five state programs with the proven ability to manage bond assistance programs to receive federal funding to support these programs.
“We need to ensure that every eligible company has the opportunity to compete for these projects so that we have a fair process as well as the highest quality of work as we restore and expand our nation’s transportation infrastructure,” Congressman Cummings said. “This legislation moves us miles ahead in achieving this goal.”
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