What is asset recycling?

Asset recycling is an economic program whereby state and municipal authorities receive federal cash subsidies to sell assets and reinvest the revenue in new infrastructure projects. The idea is for local entities to unlock capital in their balance sheets to fund job-creating projects.

Asset recycling programs have the potential to create investment opportunities for private institutions as well. This type of program places assets previously held by public entities into the hands of private enterprise. The Guardian claims this transfer in ownership is more likely to raise investment in newly privatized assets and spur greater economic activity throughout a country.