National Infrastructure Bank Act

Summary#

This bill would create a National Infrastructure Bank (the Bank). The Bank would be a mixed-ownership government corporation with a Board of Directors, an Executive Committee, a risk management committee, an audit committee, and a Special Inspector General. The Bank’s purpose is to provide long-term financing for infrastructure projects, support economic growth, and help create jobs.

Key features in the bill: the Bank may raise up to $500 billion in capital stock (held as Treasury securities), accept deposits, issue bonds backed by the full faith and credit of the United States, and make loans. The total loans contracted by the Bank may not exceed $5 trillion. The Bank can also issue preferred stock, pay dividends on that stock, and borrow from markets or the Federal Reserve. The bill sets capital adequacy and reserve rules, limits on activities (for example, it may not make consumer loans), and requires audits and public reporting.

The bill includes eligibility rules and selection criteria for projects, a requirement to coordinate with regional planning groups, and rules that apply to projects funded by the Bank: Davis-Bacon wage rules, Buy America requirements, nondiscrimination rules, minority/women/disadvantaged business participation targets, local hiring preferences, and project labor agreement rules in some states. The Bank must maintain public books and a searchable database of project financing with a 30-day public comment period before final financing.

Title I of the bill makes tax-code changes: it designates the Bank as a tax-exempt government corporation, treats contributions to the Bank as charitable contributions for tax purposes, and makes preferred dividends from the Bank excludable from gross income.

What it means for you#

• State and local governments, public utilities, tribes, public authorities, private entities, and public-private partnerships can apply for Bank financing for eligible infrastructure projects.
• Projects considered include transportation, energy, environmental (water and waste), telecommunications (broadband), community development (affordable housing, schools, parks), and other infrastructure projects that meet the Bank’s criteria.
• Contractors on Bank-funded projects must follow Davis-Bacon wage rules and civil rights nondiscrimination rules, and projects must meet Buy America and other specified participation or hiring targets.
• Local financial institutions may partner with the Bank on loans; the Bank generally should not compete with local institutions unless a service is not available locally.
• Individuals and organizations may buy preferred stock issued by the Bank under the terms described in the bill; the bill also treats contributions to the Bank as charitable contributions for tax purposes.

Expenses#

• The bill authorizes $50,000,000 for each of fiscal years 2025 and 2026 for initial organization of the Bank, the Board, and Bank staff.
• The Bank may raise capital stock up to $500,000,000,000 and the United States Treasury may act as an on-call subscriber up to $100,000,000,000 in 30-year Treasury bonds.
• The Bank may make loans up to a total of $5,000,000,000,000 and may issue bonds backed by the full faith and credit of the United States.
• The bill requires the Bank to maintain risk-based capital of no less than 10 percent and permits the Bank to set aside loan-loss provisions; losses in excess of those provisions would be borne by the Secretary of the Treasury and are described as a contingent obligation backed by the full faith and credit of the United States.
• No comprehensive budget estimate or total cost projections are included in the text of the bill. The bill states that budgetary effects for PAYGO will be determined by reference to a statement submitted to the Congressional Record. For other budget or economic estimates: No publicly available information.

Proponents' View#

The bill’s findings and text state that supporters believe a national infrastructure bank would help close a large infrastructure financing gap identified by the American Society of Civil Engineers, provide long-term financing without immediate additional Federal taxes or deficits, finance projects across the country, improve productivity and resiliency, and support job creation and economic growth. The bill also cites historical examples of national banks and asserts that similar institutions have supported large infrastructure programs and economic expansion.

Opponents' View#

No publicly available information.