‘Marshall Plan’ for cities needed, Reid tells mayors

Benjamin Grove

Thursday, Jan. 20, 2005 | 9:41 a.m.

WASHINGTON -- Senate Democratic Leader Harry Reid told U.S. mayors on Wednesday that this year he would re-introduce an "American Marshall Plan" for massive investment in urban infrastructure.

The Nevada senator has introduced the plan before -- shortly before Sept. 11, 2001, but it was shelved. Reid told a winter gathering of the U.S. Conference of Mayors it was time for Congress to reconsider it.

The nation's roads are in disrepair, airports are crowded, schools decaying, and water and sewer systems are in danger of failing, Reid told the city leaders.

"Infrastructure is literally and figuratively the cornerstone on which America is built," Reid said.

The sweeping legislation would include traditional brick and mortar projects, as well as high-tech infrastructure, including extending Internet access to inner-city neighborhoods.

The projects will benefit cities and create jobs, Reid said. But he did not outline how much the plan would cost or how he proposed to pay for it.

Reid made the remarks one day before President Bush was sworn in for a second term, and as Congress is settling into a new session that is expected to be marked by fierce budget battles.

"Investments in our cities will be money well spent," Reid said. "I understand that we have a ballooning federal deficit. But investments are different than spending."

The new Senate Democratic Leader said the lengthy infrastructure project to-do list in Nevada was an example of the kinds of work that needs doing nationwide. That list includes finishing the Las Vegas Beltway, installing a new water intake pipe at Lake Mead and a new wastewater system. The two water projects will cost almost $2 billion, Reid said.

"We don't have that money and we desperately need that money," Reid said.

Reid also said Congress this year should invest more money in homeland security and affordable housing for cities. Reid cited a 37 percent spike in housing costs in one year in Las Vegas.

Reid said he was "disappointed" to hear that President Bush may propose cuts in the Housing and Urban Development budget. He vowed that Democrats would fight such cuts. The HUD cuts were a main topic among the mayors this week. The group's executive committee adopted a resolution supporting full funding for HUD's Community Development Block Grant Program.

Congress also should extend terrorism risk insurance legislation that covers big construction projects in urban areas, Reid said.