[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1235 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1235
To establish the Federal Infrastructure Bank to facilitate investment
in, and the long-term financing of, economically viable United States
infrastructure projects that provide a public benefit, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 12, 2025
Mr. Webster of Florida (for himself and Mr. Carbajal) introduced the
following bill; which was referred to the Committee on Transportation
and Infrastructure, and in addition to the Committees on Financial
Services, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish the Federal Infrastructure Bank to facilitate investment
in, and the long-term financing of, economically viable United States
infrastructure projects that provide a public benefit, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Infrastructure Bank Act of
2025''.
SEC. 2. DEFINITIONS.
For the purposes of this Act:
(1) Bank.--The term ``Bank'' means the Federal
Infrastructure Bank established under section 4.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a corporation, limited liability company, or
any other legally established corporate form;
(B) a partnership, including a public-private
partnership;
(C) a joint venture;
(D) a trust;
(E) a State;
(F) any other governmental entity, including a
political subdivision or any other instrumentality of a
State;
(G) a revolving fund; or
(H) a State infrastructure bank.
(3) Holding company.--The term ``Holding Company'' means
the ``Federal Infrastructure Bank Holding Company'' established
under section 3.
(4) Infrastructure project.--The term ``infrastructure
project'' means the construction, consolidation, alteration,
operations, maintenance, or repair of projects, which provide
public benefit or use, in the following categories:
(A) Highway and roadway facilities, including
bridges and tunnels.
(B) Port or marine terminal facilities, including
approaches to marine terminal facilities or inland port
facilities, and port or marine equipment including
fixed equipment to serve approaches to marine terminals
or inland ports.
(C) Airports, heliports, vertiports, spaceports, or
air traffic control systems and facilities.
(D) Transmission or distribution pipelines.
(E) Facilities or equipment for energy
transmission, distribution, or storage.
(F) Intercity passenger or freight rail lines,
facilities, or equipment.
(G) Intercity passenger bus facilities or
equipment.
(H) Public transportation facilities or equipment.
(I) Inland waterways.
(J) Intermodal facilities or equipment.
(K) Water treatment and solid waste disposal
facilities and associated infrastructure such as pipes.
(L) Storm water management systems.
(M) Dams and levees.
(N) Any other infrastructure project which the Bank
identifies as providing a public benefit with regards
to infrastructure.
(5) Risk-based capital.--The term ``risk-based capital''
shall have the meaning given that term by the Board of
Governors of the Federal Reserve System.
(6) Rural.--The term ``rural'' means any area not in a
metropolitan statistical area with a population of 50,000 or
greater.
(7) State.--The term ``State'' means each of the 50 several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, American Samoa, Guam, the United
States Virgin Islands, the Commonwealth of the Northern Mariana
Islands, and each federally recognized Indian Tribe.
(8) State infrastructure bank.--The term ``State
infrastructure bank'' means a State infrastructure bank or
multi-State infrastructure bank established pursuant to--
(A) section 350 of the National Highway System
Designation Act of 1995;
(B) section 1511(l) of the Transportation Equity
Act for the 21st Century;
(C) section 610 of title 23, United States Code; or
(D) any State law as an agency, component unit, or
other governmental entity of the State.
SEC. 3. SELECTION OF THE FORMATION AGENT.
(a) In General.--Within 60 days of the date of enactment of this
Act, the Secretary of the Treasury, in consultation with the Chairman
of the Board of Governors of the Federal Reserve System, shall select a
Formation Agent which shall--
(1) make and file with the Secretary of the Treasury an
organization certificate for the Bank in accordance with such
rules and regulations as the Secretary may prescribe, including
the establishment of the Holding Company; and
(2) have significant experience in infrastructure and
infrastructure finance.
(b) Establishment of the Federal Infrastructure Bank Holding
Company.--Within 30 days after being selected under subsection (a), the
Formation Agent shall establish the Federal Infrastructure Bank Holding
Company, prescribe the governing structure of the Holding Company, and
establish the Federal Infrastructure Bank Holding Company Board of
Directors, which shall--
(1) initially consist of 7 members;
(2) be elected by the shareholders of the Holding Company;
(3) serve 4-year terms, only 2 of which may be consecutive;
(4) within the limitations of law and regulation, determine
and sign the articles of association that govern the operations
of the Holding Company, and have the power to adopt, amend, and
repeal bylaws governing the performance of the powers and
duties granted to or imposed upon the Holding Company by law;
and
(5) select and effect the appointment of qualified persons
to fill the office of the Chief Executive Officer of the Bank
and such other offices as may be provided for in the bylaws of
the Holding Company and the Federal Infrastructure Bank.
(c) Earnings And Reserves Not Government Funds.--The earnings and
reserves of the Holding Company shall be the sole property of the
Holding Company and are not Government funds or public funds.
(d) Treatment of Shareholders of the Formation Agent.--The
Formation Agent shall issue equity securities of the Holding Company to
each shareholder of the Formation Agent, in an amount that the
Formation Agent determines has a value equal to the value of equity
securities of the Formation Agent held by such shareholder upon the
establishment of the Holding Company.
SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUCTURE BANK.
(a) In General.--The Formation Agent shall establish the Federal
Infrastructure Bank as a Delaware corporation and the Bank shall be a
wholly owned subsidiary of the Holding Company.
(b) Federal Banking Charter.--The Comptroller of the Currency shall
grant a national bank charter to the Bank.
(c) Regional Offices.--Within 5 years of the date of enactment of
this Act, the Bank shall establish regional offices for the purpose of
focusing on infrastructure projects in different areas of the United
States.
(d) Board of Directors.--The Board of Directors of the Holding
Company established under section 3 shall be the initial Board of
Directors of the Bank.
(e) Earnings and Reserves Not Government Funds.--The earnings and
reserves of the Bank are not Government funds or public funds.
SEC. 5. FUNCTIONS OF THE BANK.
(a) In General.--The Bank shall provide equity investments, direct
loans, indirect loans, and loan guarantees to eligible entities for the
planning, pre-development, design, construction, operations or
maintenance of revenue-producing infrastructure projects in the United
States with sufficient revenue sources and guarantees to support the
interest and principal payments to the Bank.
(b) Support for Rural Projects.--Not less than 10 percent of the
dollar amount of loans, equity investments, and loan guarantees
provided by the Bank shall be with respect to infrastructure projects
in rural areas.
(c) Leveraging Bank Investments.--The Bank shall attempt to cross
subsidize non-revenue infrastructure projects with revenue generating
infrastructure projects to diversify the loan portfolio.
(d) No Commercial or Investment Banking Activities.--
Notwithstanding any other provision of law, the Bank is prohibited
from--
(1) accepting customer deposits; or
(2) engaging in financial or investment banking activities,
except with respect to the Bank's own revenues.
(e) Pledge and Credit Facilities.--
(1) Pledge.--The Bank shall have the authority to pledge
its loans to the discount window of the Board of Governors of
the Federal Reserve System.
(2) Purchase of obligations.--The Secretary of the Treasury
may purchase obligations issued by the Bank in the same manner
and under the same requirements that the Secretary purchases
obligations under section 306(c) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1455(c)).
(f) Leverage Limitation.--The Bank shall maintain risk-based
capital at no less than 10 percent, collectively for the Bank and the
Holding Company.
(g) Lifecycle.--The Bank shall ensure that infrastructure projects
account for long-term operations, maintenance, and life-cycle costs and
obligations to ensure that the infrastructure projects maximize the
useful life of each applicable asset.
(h) Infrastructure Delivery.--The Bank, as a clearinghouse for
infrastructure finance, may provide implementation advisory assistance,
directly or indirectly, to infrastructure projects.
(i) Credit Rating.--The Bank shall accept credit ratings consistent
with typical infrastructure market practice to enhance deployment of
capital.
(j) Prohibition on Funding of Foreign Projects.--The Bank is
prohibited from providing equity investments, direct loans, indirect
loans, and loan guarantees for infrastructure projects not located
within the United States.
(k) Prohibition With Respect to China.--The Bank is prohibited from
providing equity investments, direct loans, indirect loans, and loan
guarantees for infrastructure projects that are owned, directed,
controlled, financed, or influenced by the Government of the People's
Republic of China, the Chinese Communist Party, or the People's
Liberation Army.
SEC. 6. HOLDING COMPANY SECURITIES.
(a) Equity Securities.--
(1) In general.--The Holding Company shall issue such
equity securities as the Board of Directors of the Holding
Company determines appropriate.
(2) Dividends.--The Holding Company may make such dividend
payments on the equity securities of the Holding Company as the
Holding Company determines appropriate.
(3) Restriction on voting rights.--Any holder of an equity
security of the Holding Company that is a non-United States
individual or entity shall have no voting rights with respect
to such equity security.
(b) Bonds.--
(1) Standard bonds.--The Holding Company may issue standard
bonds with maturities up to 30 years or longer, as needed.
(2) Other bonds.--The Holding Company may issue other
bonds, notes, and marketable securities with maturities and
interest rates as the Holding Company determines appropriate.
(3) Authority to purchase bonds.--
(A) In general.--The Secretary of the Treasury and
the Board of Governors of the Federal Reserve System
may purchase bonds issued under this section.
(B) Limitation.--The aggregate amount of
outstanding bonds purchased by the Secretary under this
paragraph may not exceed 5 percent of the total amount
of the outstanding bonds of the Holding Company.
(c) Leverage Limitation.--The Holding Company shall maintain risk-
based capital at no less than 10 percent, collectively for the Bank and
the Holding Company.
(d) Investment Limitation on Non-United States Individuals and
Entities.--
(1) Non-United States individuals and entities may not hold
more than 25 percent, in the aggregate, of the equity
securities and bonds of the Holding Company.
(2) The Formation Agent and Holding Company are prohibited
from issuing any bond, note, marketable security, or other
financial instrument to any person or entity--
(A) affiliated with, owned by, or directed,
controlled, financed, or influenced by the Government
of the People's Republic of China, the Chinese
Communist Party, or the People's Liberation Army; or
(B) affiliated with, owned by, or directed,
controlled, financed, or influenced by a State Sponsor
of Terrorism, as so designated by the Secretary of
State.
SEC. 7. OVERSIGHT AND REGULATION.
The Board of Governors of the Federal Reserve System shall--
(1) have oversight and supervisory authority over the
Holding Company and the Bank, in order to ensure the safe and
sound operation of the Holding Company and the Bank; and
(2) shall regulate Bank activities to ensure compliance
with the requirements set forth in this Act.
SEC. 8. INFRASTRUCTURE GUARANTEE FUND.
The Bank shall establish an Infrastructure Guarantee Fund that
shall be used with respect to specific loans or loan guarantees made by
the Bank in the event of any non-payment by the recipient of such loan
or loan guarantee.
SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM TAXATION.
Effective for taxable years ending on or after the date of
enactment of this Act, the Holding Company and the Bank, including
franchises, capital, reserves, surplus, advances, and income of the
Holding Company or Bank, shall be exempt from all taxation imposed by
the United States and any State, county, municipal, or local taxing
authority, except that any real property of the Holding Company and the
Bank shall be subject to State, county, municipal, or local taxation to
the same extent according to its value as other real property is taxed.
SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended--
(1) by adding at the end the following new section:
``SEC. 45BB. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.
``(a) In General.--For purposes of section 38, in the case of a
taxpayer who holds a qualified Holding Company equity investment on a
credit allowance date of such investment which occurs during the
taxable year, the Federal Infrastructure Bank Holding Company credit
determined under this section for such taxable year is an amount equal
to 10 percent of the amount paid to the Holding Company for such
investment at its original issue.
``(b) Credit Allowance Date.--For purposes of this section, the
credit allowance date with respect to any qualified Holding Company
equity investment is--
``(1) the date on which such investment is initially made;
and
``(2) each of the 4 taxable years thereafter.
``(c) Qualified Holding Company Equity Investment.--For purposes of
this section, the term `qualified Holding Company equity investment'
means any equity investment originally issued by the Holding Company to
the taxpayer under section 6(a)(1) of the Federal Infrastructure Bank
Act of 2025 not later than 3 years after the formation of the Federal
Infrastructure Bank Holding Company pursuant to section 3 of the
Federal Infrastructure Bank Act of 2025.
``(d) Holding Company.--For purposes of this section, the term
`Holding Company' means the Federal Infrastructure Bank Holding Company
established by the Federal Infrastructure Bank Act of 2025.''; and
(2) in the table of contents for such subpart, by adding at
the end the following:
``45BB. Federal Infrastructure Bank Holding Company credit.''.
(b) Conforming Amendment.--Section 38(b) of such Code is amended by
striking ``plus'' at the end of paragraph (37), by striking the period
at the end of paragraph (38) and inserting ``, plus'', and by adding at
the end the following new paragraph:
``(39) the Federal Infrastructure Bank Holding Company
credit determined under section 45BB.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 11. RULE OF CONSTRUCTION.
Nothing in this Act may be construed as authorizing the Federal
Government to guarantee the assets of the Bank or Holding Company.
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