AFTER SCHUMER PUSH, PORT AUTHORITY NOW HAS UNPRECEDENTED & IMMEDIATE ACCESS TO HUNDREDS-OF-BILLIONS IN CAPITAL DOLLARS THAT CAN BE USED TO SUSTAIN CRITICAL PROJECTS & NEEDS, INCLUDING REVAMP OF NY AIRPORTS; PA CAN NOW DIRECTLY ACCESS THE FEDERAL RESERVE’S NEW LENDING FACILITY
Schumer Worked With Fed Chair Powell & Secretary Mnuchin To Expand Vital, Low-Cost Borrowing Access To Entities Like The Port Authority & New York Counties As Liquidity Concerns Mounted; Senator Put Critical Eligibility Language Into CARES Act
Port Authority Now Has Access To $500 Billion Lending Pool To Help Weather Coronavirus & Keep Critical Projects On Track
Schumer: PA Can Now Access Billions Of Dollars From Fed Lending Facility
Today U.S. Senator Charles Schumer announced that the Federal Reserve Board will officially expand the scope of the Municipal Liquidity Facility (MLF), allowing multi-State entities, such as The Port Authority, to access critical funds directly from the facility, which will offer up to $500 billion in financing to help these entities manage through the financial stresses this crisis has caused. The Municipal Liquidity Facility is part of an initiative to provide up to $2.3 trillion in loans to support U.S. households, businesses, and communities, according to the Federal Reserve Board. The deal was solidified in the CARES Act.
“I made the case directly to Fed Chair Powell and Secretary Mnuchin to make this happen here because I knew how critical this would be for the Port Authority, among others in need of cash to weather this crisis,” said U.S. Senator Charles Schumer. “The Federal Reserve’s expansion of the lending program to include multi-state entities like the Port Authority was not just a New York necessity, but it will be an economic life-saver, and I am glad we got it done. I will continue to hold the Federal Reserve’s feet to the fire to ensure that access to this new liquidity is without unnecessary roadblocks and also streamlined, as I know entities like the Port Authority will begin to tap these dollars as soon as possible.”
"Expanding the Municipal Liquidity Facility to cover bi-state and multi-state entities is a crucial development to help keep the Port Authority afloat in a time of incredible economic upheaval," said Tom Wright, President & CEO of Regional Plan Association. "Thank you to Senator Schumer and the rest of the New York and New Jersey Congressional Delegations for acting to protect the many assets that are integral to the bi-state economy. We sincerely hope the Federal Reserve will continue to expand the program to protect the MTA and other essential government entities."
“Expanding the scope of the Municipal Liquidity Facility will help to spur New York’s recovery by financing infrastructure projects that create jobs, foster economic activity, and generate revenue to fund vital city services,” said James Whelan, President of the Real Estate Board of New York. “We thank Senator Schumer for his unwavering leadership and commitment to help New York through this crisis.”
“Critical infrastructure agencies such as the Port Authority of New York and New Jersey are essential to the recovery and resurgence of urban regional economies and the nation as a whole. We thank Senator Schumer for championing access to the Municipal Liquidity Facility for these agencies,” said Kathryn Wylde, President & CEO, Partnership for New York City.
"This recent decision by the Federal Reserve will allow our passenger trains, ships, and airplanes to continue moving efficiently and safely – providing an essential route for the flow of people and goods in, through and among major metropolitan regions. The United States depends on a strong transportation network and the Port Authority benefits the entire nation," said Mitchell L. Moss, Director, NYU Rudin Center for Transportation.
According to the Fed, the MLF is established under Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary. The Treasury will provide $35 billion of credit protection to the Federal Reserve for the facility using funds appropriated by the Coronavirus Aid, Relief, and Economic Security Act.
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