Citing a decades-long under investment infrastructure, Newsom and Buttigieg say they've pulled together $5 billion in loans, though it's unclear where the money would be spent.
This is separate from the infrastructure bill still in congress. “Our supply chains are being put to the test, with unprecedented consumer demand and pandemic-driven disruptions combining with the results of decades-long underinvestment in our infrastructure,” Buttigieg said in a statement. “Today’s announcement marks an innovative partnership with California that will help modernize our infrastructure, confront climate change, speed the movement of goods and grow our economy.” Newsom also insisted that the partnership "will help us jumpstart and support multiple infrastructure projects to improve our supply chain, making sure goods get to where they need to go faster, cheaper, and more environmentally-friendly."
The loan money would come from existing U.S. Transportation Department programs that offer easy terms, including low rates of interest, loan guarantees and long payback periods, as well as some state money and public-private financing.