The budget President Barack Obama proposed expands a taxable bond program and could change how many states and cities finance daily operations and big projects. Obama is proposing to expand and making permanent taxable Build America Bonds, which were created in the stimulus plan last year to finance infrastructure. Those bonds gave issuers a federal rebate equal to 35 percent of interest costs.
Obama would like the program, which expires at the end of this year, to become permanent and cover a wider universe of financing, but he also suggested dropping the subsidy to 28 percent.