As anticipation builds around former President Donald Trump's potential bid for the White House, a revived proposal to auction off distressed federal assets is catching the attention of both parties.
Breitbart reported that the plan, known as the Generating American Income and Infrastructure Act (GAIIN Act), was initially put forward in 2018 with the goal of raising over $1 trillion for infrastructure projects and policies favoring working-class Americans.
The GAIIN Act, originally stalled due to impeachment controversies, is regaining momentum amid shifting political alignments and renewed interest in working-class economic policies.
The GAIIN Act was first introduced during Trump's previous term by a bipartisan assembly that included Rep. Mike Kelly, and then-Reps. Ted Budd and William Lacy Clay.
Despite showing promise, the proposal faded from the spotlight due to Trump's impeachment efforts. However, with the former president's prospects shaping the current political landscape, old supporters and new allies are revisiting this ambitious plan.
Supporters of the proposal include prominent figures who have ascended in their political careers. For instance, Mike Kelly now chairs a significant subcommittee and Ted Budd has taken office as a U.S. Senator. Their political advancement provides additional momentum to the proposal's revival.
The original version focused on auctioning off U.S. Department of Agriculture loans, but the updated proposal encompasses a wider spectrum of federal assets.
Economist Andy Koenig has contributed an analysis suggesting this could generate more than $1 trillion, referencing similar fiscal moves in history, such as Ronald Reagan's 1986 Omnibus Budget Reconciliation Act.
Notably, the federal government is said to have nearly $1.9 trillion in outstanding loans and $87 billion in defaulted loan guarantees that could be leveraged under this Act.
The Act initially attracted bipartisan endorsement due to its potential to fund infrastructure projects specifically targeting districts of working-class Americans. Sam Geduldig, a lobbyist instrumental in promoting the Act, advocates for this populist strategy, emphasizing its potential to realign power while addressing the economic concerns of Trump’s voter base.
“The GAIIN Act is the legislative proposal that can most quickly reward those voters,” Geduldig noted, highlighting its role in delivering on economic promises.
This approach is echoed by figures like Tom Emmer, House Majority Whip, who calls for innovative solutions to address national debt and economic recovery, stating that examining all options is essential.
Prominent Republicans, including the newly-elected Sen. Jim Banks, are expressing enthusiasm for the proposal.
Banks emphasized the need for innovative methods to spur job creation in working-class communities without exacerbating the national debt. He sees selling distressed federal assets as a viable path forward.
Additionally, Ja'Ron Smith and other policy advocates are exploring synergies between the GAIIN Act and initiatives like Opportunity Zones, which have spurred investment and growth in economically distressed areas. Opportunity Zones, conceived by Sen. Tim Scott, have generated substantial economic benefits since their inception.
Even Democrats recognize the potential benefits of the GAIIN Act, with figures like Mike Williams championing its capacity to offer relief to underserved regions. Williams argues that these communities, united by common needs rather than political divides, could greatly benefit from the Act's implementation.
Williams emphasized the bridging nature of the Act among these communities and looks forward to bipartisan efforts in advancing it. “The GAIIN Act has the potential to bring long-sought relief to traditionally underserved communities,” he said, noting the need for collaborative action.
