Bill Summary
The Railroad Rehabilitation and Improvement Financing Equity Act requires the Secretary of Transportation to repay the credit risk premiums that were paid for certain railroad infrastructure loans once all of the obligations attached to the loans have been fulfilled. This Act is also known as the "Railroad Rehabilitation and Improvement Financing Equity Act" and it amends the Railroad Revitalization and Regulatory Reform Act of 1976. The amendment states that the Secretary must repay the credit risk premiums for loans that fall under the "cohort 3" category, as defined by the Department of Transportation's memorandum to the Office of Management and Budget. This repayment must be made within 60 days after all obligations related to the loan have been satisfied. If any of the loans have already been satisfied before the enactment of this Act, the Secretary must still repay the credit risk premium within 60 days after the enactment of the Act.
Possible Impacts
1. This legislation could potentially benefit individuals who have taken out railroad infrastructure loans by requiring the Secretary of Transportation to repay their credit risk premiums once their loan obligations have been satisfied. This could lead to financial relief for people who may have struggled to afford these premiums in the past.
2. On the other hand, this legislation could also have a negative impact on taxpayers, as they would ultimately be responsible for funding the repayment of these credit risk premiums. This could result in higher taxes or reduced government funds for other programs.
3. The legislation's requirement for the Secretary of Transportation to repay credit risk premiums within a specific timeframe could also create pressure and potential challenges for the department in terms of logistics and budgeting. This could lead to delays or difficulties in meeting the repayment deadline, which could have further implications for individuals affected by this legislation.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6452 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6452
To require the Secretary of Transportation to repay the credit risk
premiums paid with respect to certain railroad infrastructure loans
after the obligations attached to such loans have been satisfied.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2020
Mr. Perlmutter (for himself, Mr. Buck, Mr. Crow, Ms. DeGette, and Mr.
Neguse) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
_______________________________________________________________________
A BILL
To require the Secretary of Transportation to repay the credit risk
premiums paid with respect to certain railroad infrastructure loans
after the obligations attached to such loans have been satisfied.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Railroad Rehabilitation and
Improvement Financing Equity Act''.
SEC. 2. CREDIT RISK PREMIUMS.
Section 502(f) of the Railroad Revitalization and Regulatory Reform
Act of 1976 (45 U.S.C. 822(f)) is amended by adding at the end the
following:
``(5) Refund of premiums.--The Secretary shall repay the
credit risk premium of each loan in cohort 3, as defined by the
Department of Transportation's memorandum to the Office of
Management and Budget dated November 5, 2018, with interest
accrued thereon, not later than 60 days after the date on which
all obligations attached to each such loan have been satisfied.
For each such loan for which obligations have already been
satisfied, as of the date of enactment of the Railroad
Rehabilitation and Improvement Financing Equity Act, the
Secretary shall repay the credit risk premium of each such
loan, with interest accrued thereon, not later than 60 days
after the date of the enactment of such Act.''.
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