The bill would provide money for tax-exempt bonds to finance rail projects which reach a speed of at least 110 miles per hour. It would include $10 billion over 10 years to fund improvements in the Northeast and California, and $5.4 billion over a six-year period for 10 rail corridors, including connecting the cities of the Midwest through Chicago, connecting the cities of the Northwest, connecting the major cities within Texas and Florida, and connecting all the cities along the East Coast.
Pennsylvania Senator Arlen Spencer is a co-sponsor of the bill. Blogger Ryan Avent ponders the possibilities:
Economic geography tells us that market potential is important. If you want to be a rich place, it helps to be close to other rich places. This is one of the problems with the Rust Belt. Individually, Rust Belt cities are weaker than cities on the east coast — they have smaller economies and less human capital. This is complicated by the fact that they’re fairly isolated. The rich cities of the northeast corridor are squeezed together, while Rust Belt cities are far apart — from each other and from the rich cities of the east coast. This means that they have less to work with, and they’re less able to leverage that strength in a regional economy. For this reason, I’ve argued that it’s important to invest in individual cities in the Rust Belt, but it’s also important to improve connections between the cities. To effectively bring them closer together.
Go here for some debate on the subject.