[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5356 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5356
To facilitate efficient investments and financing of infrastructure
projects and new job creation through the establishment of a National
Infrastructure Bank, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 15, 2025
Mr. Davis of Illinois (for himself, Mr. Smith of Washington, Mr.
Espaillat, Mr. Lynch, Mr. Tonko, Ms. Pingree, Mr. Magaziner, Mr.
Cleaver, Mr. Deluzio, Mr. Garamendi, Mr. Mullin, Ms. Velazquez, Mr.
Frost, Mr. Landsman, Mr. Suozzi, Mr. McGovern, Mrs. Ramirez, Mr. Amo,
Ms. Tlaib, Mr. Khanna, Mr. Thanedar, Ms. Kaptur, Mr. Jackson of
Illinois, Mr. Johnson of Georgia, Mr. Torres of New York, Mr. Goldman
of New York, Mr. Nadler, Mr. Latimer, Mr. Ryan, Mr. Garcia of Illinois,
Mr. Evans of Pennsylvania, Mr. Carson, and Ms. Norton) introduced the
following bill; which was referred to the Committee on Energy and
Commerce, and in addition to the Committees on Ways and Means,
Transportation and Infrastructure, Financial Services, Education and
Workforce, Natural Resources, and the Budget, 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 facilitate efficient investments and financing of infrastructure
projects and new job creation through the establishment of a National
Infrastructure Bank, 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; TABLE OF CONTENTS.
(a) In General.--This Act may be cited as the ``National
Infrastructure Bank Act of 2025''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--REVENUE PROVISIONS
Sec. 101. Treatment of National Infrastructure Bank as a Government
corporation exempt from tax.
Sec. 102. Treatment of contributions to the National Infrastructure
Bank as charitable contributions.
Sec. 103. Preferred dividends of National Infrastructure Bank
excludible from gross income.
TITLE II--ESTABLISHMENT OF NATIONAL INFRASTRUCTURE BANK
Sec. 201. Definitions.
Sec. 202. Establishment of National Infrastructure Bank.
Sec. 203. Purposes and authorizations.
Sec. 204. Formation of regional economic accelerator planning groups.
Sec. 205. Eligibility criteria for assistance from the Bank.
Sec. 206. Board of Directors.
Sec. 207. Powers and limitations of the Board.
Sec. 208. Executive Committee.
Sec. 209. Risk management committee.
Sec. 210. Audit committee.
Sec. 211. Personnel.
Sec. 212. Special Inspector General for the National Infrastructure
Bank.
Sec. 213. Status and applicability of certain Federal and State laws.
Sec. 214. Exemption from certain laws.
Sec. 215. Relations with local financial institutions.
Sec. 216. Audits; reports to President and Congress.
Sec. 217. Budgetary effects.
Sec. 218. Authorization of appropriations.
SEC. 2. FINDINGS.
Congress finds that--
(1) throughout the history of the United States, national
banks have played a crucial role in financing most of the
public infrastructure of the United States;
(2) the largest national banks included--
(A) the First Bank of the United States, from 1791
through 1811;
(B) the Second Bank of the United States, from 1816
through 1836;
(C) the national banking system instituted by
President Lincoln; and
(D) the Reconstruction Finance Corporation
instituted by President Franklin Delano Roosevelt, from
1932 through 1957;
(3) those national banks were enacted with broad bipartisan
support, and financed the construction of roads, turnpikes,
bridges, canals, the Transcontinental Railroad, the Hoover Dam,
rural electrification, manufacturing startups, and rail,
school, and farm improvements in every corner of the United
States;
(4) those infrastructure investments created the conditions
for improved productivity, economic growth, and job creation,
helped lift the United States out of the Great Depression, and
contributed to victory in World War II;
(5) the American Society of Civil Engineers (referred to in
this section as ``ASCE''), in its 2025 Report Card estimates
that $9,139,000,000,000 (not adjusted for inflation) is needed
from 2024 to 2033 to meet all of the infrastructure needs of
the United States, and of that amount, $5,450,000,000,000 is
expected to be financed by the Federal Government at continued
appropriation levels, and by States, counties, cities,
utilities, and port and airport authorities through their
general revenues, special taxes, user fees, and borrowing from
capital markets;
(6) even with the investments described in paragraph (5), a
financing gap of $3,689,000,000,000 remains, and to close that
gap, the United States will need to increase funding by all
levels of government, in order to improve infrastructure
quality and resiliency, grow the economy faster, and maintain
our international competitiveness;
(7) ASCE further estimates that the added
$3,689,000,000,000 needed over a 10-year period to bring
systems up to a state of good repair includes--
(A) $1,208,000,000,000 for roads, bridges, and
transit;
(B) $1,015,000,000,000 for drinking water,
wastewater, and stormwater systems;
(C) $429,000,000,000 for schools and broadband
access;
(D) $578,000,000,000 for electricity generation,
transmission, and distribution;
(E) $113,000,000,000 for aviation;
(F) $286,000,000,000 for dams, levees, inland
waterways, and ports;
(G) $32,000,000,000 for passenger rail; and
(H) $44,000,000,000 for public parks and
recreation;
(8) expanded investment of at least $1,311,000,000,000 is
also needed, including--
(A) $320,000,000,000 for new affordable housing;
(B) $791,000,000,000 for a 17,000-mile high-speed
rail network;
(C) $200,000,000,000 for major water supply
projects; and
(D) incorporated in each of the categories
described in subparagraphs (A) through (C), science and
technology drivers, resiliency features, accommodation
of population growth, energy savings, and improvements
in rural, urban, and low-income areas that the public
and private sectors are not fully serving now;
(9) although Federal grant programs, along with matching
State and local funding, should continue to play a coordinating
role in financing infrastructure in the United States, current
and foreseeable demands on existing Federal, State, and local
budgets exceed the resources to support those programs by a
wide margin;
(10) a sharp bout of inflation in 2021 through 2023, and a
delay in the enactment of a robust, adequately sized, 10-year
lending plan to the period of 2024 through 2033, should require
a 40-percent increase above real costs to ensure adequate
funding in nominal dollars;
(11) the establishment of a United States public deposit
bank would provide direct loans and other financing of up to
$5,000,000,000,000 for qualifying infrastructure projects
without requiring additional Federal taxes or deficits; and
(12) that funding would--
(A) be adequate to finance all of the unfunded
infrastructure needs of the United States, in all parts
of the country, according to well-developed strategic
plans; and
(B) return the United States to its most recent
``golden age'' when a National Infrastructure Bank was
in place, from 1933 to 1957, during which time--
(i) total factor productivity advanced by
3.5 percent per year;
(ii) the economy grew, on average, 5.5
percent per year;
(iii) income inequality decreased by \1/3\;
and
(iv) Federal and State tax receipts rose
dramatically.
TITLE I--REVENUE PROVISIONS
SEC. 101. TREATMENT OF NATIONAL INFRASTRUCTURE BANK AS A GOVERNMENT
CORPORATION EXEMPT FROM TAX.
(a) In General.--Section 501(l) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(5) The National Infrastructure Bank established under
title II of the National Infrastructure Bank Act of 2025.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years ending after the date of the enactment of this Act.
SEC. 102. TREATMENT OF CONTRIBUTIONS TO THE NATIONAL INFRASTRUCTURE
BANK AS CHARITABLE CONTRIBUTIONS.
(a) In General.--Section 170(c) of the Internal Revenue Code of
1986 is amended by inserting after paragraph (6) the following new
paragraph:
``(7) The National Infrastructure Bank established under
title II of the National Infrastructure Bank Act of 2025.''.
(b) Application of Percentage Limitation.--Section 170(b)(1)(A) of
such Code is amended by striking ``or'' at the end of clause (ix), by
inserting ``or'' at the end of clause (x), and by inserting after
clause (x) the following new clause:
``(xi) the National Infrastructure Bank
referred to in subsection (c)(7),''.
(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. 103. PREFERRED DIVIDENDS OF NATIONAL INFRASTRUCTURE BANK
EXCLUDIBLE FROM GROSS INCOME.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139I the following new section:
``SEC. 139J. PREFERRED DIVIDENDS OF NATIONAL INFRASTRUCTURE BANK.
``Gross income shall not include any amount received as a dividend
on preferred stock of the National Infrastructure Bank pursuant to
section 203(c) of the National Infrastructure Bank Act of 2025 (as in
effect on the date of the enactment of this section).''.
(b) Clerical Amendment.--The table of sections of such part is
amended by inserting after the item relating to section 139I the
following new item:
``Sec. 139J. Preferred dividends of National Infrastructure Bank.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
TITLE II--ESTABLISHMENT OF NATIONAL INFRASTRUCTURE BANK
SEC. 201. DEFINITIONS.
In this title:
(1) Affordable housing.--The term ``affordable housing''
means housing that meets the criteria established under section
215 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12745).
(2) Bank.--The term ``Bank'' means the National
Infrastructure Bank established under section 202(a).
(3) Blended financing.--The term ``blended financing''
means financing provided through any combination of loans or
bond financing, in cooperation with private lenders or State
revolving funds, that is integrated into a single agreement
with a single set of financial terms.
(4) Board.--The term ``Board'' means the Board of Directors
of the Bank established by section 206.
(5) Chief asset and liability management officer.--The term
``chief asset and liability management officer'' means the
individual responsible for coordinating the management of
assets and liabilities of the Bank.
(6) Chief compliance officer.--The term ``chief compliance
officer'' means the individual responsible for overseeing and
managing the compliance and regulatory affairs of the Bank.
(7) Chief executive officer.--The term ``chief executive
officer'' means the individual serving as the executive
director of the Bank.
(8) Chief financial officer.--The term ``chief financial
officer'' means the individual responsible for managing the
financial risks, planning, and reporting of the Bank.
(9) Chief loan origination officer.--The term ``chief loan
origination officer'' means the individual responsible for
managing the processing of new loans provided by the Bank.
(10) Chief operations officer.--The term ``chief operations
officer'' means the individual responsible for the retail
operations of the Bank and the branches of the Bank, including
the administrative, human resource, and information technology
systems of the Bank.
(11) Chief risk officer.--The term ``chief risk officer''
means the individual responsible for managing operational and
compliance-related risks of the Bank.
(12) Chief treasury officer.--The term ``chief treasury
officer'' means the individual responsible for managing the
treasury operations of the Bank.
(13) Community development infrastructure.--The term
``community development infrastructure'' means the development
of affordable housing, transportation, water infrastructure,
schools, affordable broadband, public parks and recreation,
libraries, or public facilities that train workers and build
labor skills.
(14) Connectivity.--The term ``connectivity'', with respect
to an infrastructure project, means the linkages in
transportation, energy, communications, community development
infrastructure, and manufacturing and data centers, that tie
geographic areas together into economic units, including
networks of commuter routes, railways, shipping lanes, and
internet cables, including geomatic data collected by the
Department of Transportation.
(15) Develop; development.--The terms ``develop'' and
``development'', with respect to an infrastructure project,
mean--
(A) any preconstruction planning, feasibility
review for stand-alone projects or for bundled
projects, permitting, design work, life-cycle
maintenance planning, and other preconstruction
activities; and
(B) any construction, reconstruction,
rehabilitation, replacement, or expansion.
(16) Direct loan.--The term ``direct loan'' has the meaning
given the term in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(17) Disadvantaged community.--The term ``disadvantaged
community'' means a community that is--
(A) a low-income community; or
(B) a federally recognized area of economic
distress (as defined in section 100002 of the
Infrastructure Investment and Jobs Act (15 U.S.C.
9501)).
(18) Energy infrastructure project.--The term ``energy
infrastructure project'' means a project that involves the
construction of a new or upgraded energy generation,
transmission, distribution, or storage facility.
(19) Entity.--The term ``entity'' means--
(A) a State or political subdivision of a State;
(B) a unit of local government;
(C) a publicly owned utility;
(D) a special purpose district, public authority,
public corporation, or cooperative authorized to
contract indebtedness;
(E) an Indian Tribe;
(F) a public trust;
(G) an authority, agency, or instrumentality of, or
an entity owned by, 1 or more entities described in
subparagraphs (A) through (F);
(H) a group of entities described in subparagraphs
(A) through (G);
(I) a private entity; and
(J) a public-private partnership.
(20) Environmental infrastructure project.--The term
``environmental infrastructure project'' means any project
for--
(A) the establishment, deferred maintenance, or
enhancement, including security enhancement, of any
drinking water and wastewater treatment facility,
stormwater management system, flood gate, dam, levee,
solid waste disposal facility, or hazardous waste
facility;
(B) dredging;
(C) wetland restoration or other open space
conservation;
(D) infill development; or
(E) industrial site cleanup or remediation.
(21) Executive committee.--The term ``Executive Committee''
means the Executive Committee of the Bank established under
section 208(a).
(22) Federally recognized area of economic distress.--The
term ``federally recognized area of economic distress'' means--
(A) a HUBZone (as defined in section 31(b) of the
Small Business Act (15 U.S.C. 657a(b)));
(B) an area that--
(i) has been designated as an empowerment
zone under section 1391 of the Internal Revenue
Code of 1986;
(ii) has been designated as a Promise Zone
by the Secretary of Housing and Urban
Development; or
(iii) is a low- or moderate-income area, as
determined by the Secretary of Housing and
Urban Development; and
(C) a qualified opportunity zone (as defined in
section 1400Z-1(a) of the Internal Revenue Code of
1986).
(23) General counsel.--The term ``general counsel'' means
the individual who serves as the chief lawyer for the Bank.
(24) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) hydrofluorocarbons;
(C) methane;
(D) nitrous oxide;
(E) perfluorocarbons; and
(F) sulfur hexafluoride.
(25) Infrastructure project.--The term ``infrastructure
project'' means any transportation infrastructure project,
energy infrastructure project, environmental infrastructure
project, telecommunications infrastructure project, community
development infrastructure project, or other infrastructure
project for which a development plan is presented to the Bank
for financing.
(26) Local financial institution.--The term ``local
financial institution'' means--
(A) a certified community development financial
institution (as defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4702));
(B) a credit union the deposits of which are
insured under Federal or State law or are protected or
guaranteed under State law;
(C) a small bank and savings association or an
intermediate bank or savings association (as those
terms are defined in section 25.12 of title 12, Code of
Federal Regulations (or a successor regulation)); and
(D) a State public bank.
(27) Low-income community.--The term ``low-income
community'' means any census block group in which 30 percent or
more of the population are individuals with an annual household
income equal to, or less than, the greater of--
(A) an amount equal to 80 percent of the median
income of the area in which the household is located,
as reported by the Department of Housing and Urban
Development; and
(B) 200 percent of the Federal poverty line.
(28) Private entity.--The term ``private entity'' means a
corporation, partnership, company, or nonprofit organization.
(29) Productivity.--The term ``productivity'' means the
improved efficiency in the economy associated with investments
in public and private infrastructure, calculated as the
difference between--
(A) the change in the value of total production;
and
(B) the change in the value of inputs going into
production.
(30) Public benefit.--The term ``public benefit'' means the
clear and measurable benefit to society resulting from the use
of the infrastructure project by the public with respect to
which a project is carried out, or the improvement the
infrastructure project provides in--
(A) economic growth and productivity;
(B) air and water quality;
(C) energy savings;
(D) high-wage jobs;
(E) poverty reduction; or
(F) Federal, State, and local revenues.
(31) Public-private partnership.--The term ``public-private
partnership'' means an agreement between an entity described in
any of subparagraphs (A) through (H) of paragraph (19) and a
private entity to finance, build, and maintain or operate an
infrastructure project.
(32) Revolving fund.--The term ``revolving fund'' means a
fund or program established by a State or a political
subdivision or other instrumentality of a State, the principal
activity of which is to make loans, commitments, or other
financial accommodations for the development of 1 or more
categories of infrastructure projects.
(33) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(34) State.--The term ``State'' means any of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, American Samoa, the United States Virgin Islands,
the Commonwealth of the Northern Mariana Islands, and any other
territory or possession of the United States.
(35) Telecommunications infrastructure project.--The term
``telecommunications infrastructure project'' means any project
involving infrastructure required--
(A) to provide communications by wire (including
fiber optic cable), wireless (including satellite,
microwave, or beam), internet, or radio (including
broadband); or
(B) to enhance performance and security for that
infrastructure (including networks and artificial
intelligence).
(36) Transportation infrastructure project.--The term
``transportation infrastructure project'' means any project for
the construction, deferred maintenance, or enhancement,
including security enhancement, of a highway, road, bridge,
transit or intermodal system, inland waterway, commercial port,
airport, high-speed or passenger rail, or rail track system.
(37) Trust fund.--
(A) In general.--The term ``trust fund'' means a
delineated account in the books of the Bank, set up to
receive and disburse grant money to fully or partially
subsidize project loans to entities operating in
disadvantaged communities.
(B) Inclusions.--The term ``trust fund'' includes
any trust fund receipts remaining from net operations
of the Bank, a Federal grant disbursement, or a
philanthropic or other gift from an individual or
entity, as such a receipt becomes available.
SEC. 202. ESTABLISHMENT OF NATIONAL INFRASTRUCTURE BANK.
(a) Establishment of National Infrastructure Bank.--There is
established a National Infrastructure Bank, which shall be a mixed-
ownership Government corporation subject to chapter 91 of title 31,
United States Code, except as otherwise provided in this Act.
(b) Conforming Amendment.--Section 9101(2) of title 31, United
States Code, is amended by adding at the end the following:
``(K) the National Infrastructure Bank.''.
(c) National Bank Charter.--This Act shall serve as the charter for
the Bank.
(d) Responsibility of the Secretary.--The Secretary shall take such
action as may be necessary to assist in the establishment of the Bank
in accordance with this Act.
SEC. 203. PURPOSES AND AUTHORIZATIONS.
(a) Purpose.--The purpose of National Infrastructure Bank shall be
to facilitate efficient, long-term financing of infrastructure
projects, business and economic growth, and new job creation in the
United States.
(b) Capitalization.--
(1) In general.--The National Infrastructure Bank shall
raise capital stock, in an amount approved by the Board, but
not to exceed $500,000,000,000, to be held in the form of
Treasury securities.
(2) Subscription.--The capital stock shall be subscribed
by--
(A) public holders of outstanding Treasury
securities of 3 years or greater maturity, or
outstanding municipal bonds of States or municipalities
of 5 years or greater maturity, who transfer such
securities or bonds to the Bank in exchange for the
capital stock;
(B) paid-in share capital, paid in cash; and
(C) the United States Treasury, as on-call
subscriber to the Bank, in an amount up to
$100,000,000,000 in 30-year United States Treasury
bonds.
(3) Capital adequacy ratio.--The Bank shall maintain risk-
based capital of no less than 10 percent.
(4) Limitation on purchase of newly issued public debt.--
The Bank shall not purchase public debt of the United States,
as newly issued, except for the purpose of rolling over the
existing Treasury holdings of the Bank or to convert the
proceeds of cash purchases of the preferred stock of the Bank
into Treasury securities.
(5) Assessments and phase-in of limitation on capital
stock.--The accumulation of capital stock of the Bank shall be
limited--
(A) to no more than $150,000,000,000 by the end of
its first full fiscal year of operations, following the
end of which fiscal year the Board of Governors of the
Federal Reserve System shall conduct an assessment of
the operations of the Bank and report to Congress and
the Board of the Bank concerning the ways in which the
Bank is succeeding or falling short in fulfilling the
purposes of this Act;
(B) to no more than $300,000,000,000 by the end of
its third full fiscal year, following the end of which
fiscal year the Board of Governors of the Federal
Reserve System shall conduct another assessment of the
operations of the Bank and submit similar reports to
those specified in subparagraph (A), noting in
particular the adequacy of the response of the Bank to
criticisms and recommendations included in the
assessment conducted pursuant to subparagraph (A);
(C) to no more than $500,000,000,000 by the end of
its fifth full fiscal year, following the end of which
fiscal year the Board of Governors of the Federal
Reserve System shall conduct another assessment of the
operations of the Bank and submit similar reports to
those specified in subparagraphs (A) and (B), noting in
particular the adequacy of the response of the Bank to
criticisms and recommendations included in the
assessments conducted pursuant to subparagraphs (A) and
(B); and
(D) thereafter to the full amount set forth in
paragraph (1), with the Board of Governors of the
Federal Reserve System conducting periodic assessments
of the operations of the Bank and submitting similar
reports to those specified in subparagraphs (A) through
(C) following the end of each fifth fiscal year
beginning with the tenth full fiscal year of the Bank.
(c) Preferred Stock.--
(1) In general.--All subscribed capital shall be exchanged
for an equivalent in preferred stock, or shares, in the Bank,
callable only by the Bank at the current market value of the
shares during a period of 20 years following finalization of a
stock purchase agreement. Notwithstanding any other provision
of law, a guarantee of redemption at the then current market
price of the shares shall be included in the stock purchase
agreement. Preferred shareholders shall have no voting rights
in the Bank.
(2) Dividends on preferred stock.--The Bank shall pay
dividends on its preferred stock semiannually at the following
rates:
(A) For stock acquired in exchange for Treasury
securities by an individual, by an entity that is not
exempt from tax under section 501 of the Internal
Revenue Code of 1986, or by the United States Treasury,
the same annual rate as the Treasury security exchanged
for the stock.
(B) For stock acquired in exchange for securities
by an organization that is exempt from tax under
section 501 of the Internal Revenue Code of 1986, the
same annual rate as the Treasury security exchanged for
the stock plus \1/2\ percent.
(C) For stock purchased in exchange for cash by an
individual or an entity that is not exempt from tax
under section 501 of the Internal Revenue Code of 1986
and for stock acquired in exchange for municipal bonds,
the same annual rate payable on Treasury bonds with a
30-year maturity purchased from the Treasury on the day
the stock purchase agreement is finalized.
(D) For stock purchased in exchange for cash by an
organization that is exempt from tax under section 501
of the Internal Revenue Code of 1986, the same annual
rate payable on Treasury bonds with a 30-year maturity
on the day the stock purchase agreement is finalized
plus \1/2\ percent.
(3) Acquisitions for other than cash or treasury securities
treated as acquisitions for cash.--For stock acquired in
exchange for non-cash assets other than Treasury securities,
the assets shall be liquidated by the Bank and the proceeds
treated as a cash purchase of stock.
(4) Authority to modify rates.--If the dividends provided
for in paragraph (2) generate more or less investment in the
preferred stock of the Bank than is needed to achieve and
maintain the desired level of capital investment in the Bank,
the directors of the Bank may reduce or increase the dividends
provided for new acquisitions of preferred stock in 1 or more
of subparagraphs (A) through (D) of paragraph (2) for such
periods of time as the directors determine appropriate.
(5) Priority and obligation of dividend payments.--Dividend
payments on the preferred stock shall have priority over other
uses of interest payments received by the Bank on its capital
stock holdings of Treasury securities, and any such dividends
owed in excess of the amount covered by these interest payments
shall be guaranteed by the Bank in the stock purchase
agreement.
(d) Borrowed Capital.--
(1) In general.--The Bank is further authorized to raise
borrowed capital for projects needs, or to meet its cash flow
needs, by--
(A) issuing bonds, with a fixed 5- to 10-year
maturity;
(B) maintaining a permanent, revolving discount
line of credit account with the Board of Governors of
the Federal Reserve System; and
(C) borrowing from other banks or wholesale capital
markets, under repurchase or other agreements, on a
short-or medium-term basis, as determined by the chief
financial officer and chief risk officers, with
approval by the Board.
(2) Definition.--In this subsection, the term ``bond''
means any bond issued in accordance with this Act--
(A) the proceeds from the sale of which are to be
used for expenditures incurred after the date of
issuance with respect to any infrastructure project or
other purpose, subject to such rules as the Bank may
provide;
(B) that is issued in registered form;
(C) that has such terms, and carries interest in
such an amount, as determined by the Bank; and
(D) for which the payment of interest and principal
with respect to the bond is the obligation of the Bank,
and is backed by the full faith and credit of the
United States.
(e) Deposits.--Once chartered as a national bank, the Bank--
(1) shall accept deposits from individuals, corporations,
public entities, or any other source, into transaction deposit
accounts on its books, and pay interest on those deposits, in
an amount deemed appropriate by the Board;
(2) may deposit its funds in any bank or other financial
institution; and
(3) may utilize the services of electronic transfer systems
to transfer funds among any deposit accounts.
(f) Loans.--
(1) In general.--The Bank shall provide loans, in
accordance with this Act, to entities, or enter into blended
financing credit, for the financing, development, or operation
of infrastructure projects.
(2) Loan maturity.--The maturity of loans should match, to
the extent possible, the maturity periods of anticipated
profitability, economic stimulus, and projected useful life of
projects financed by such loans.
(3) Loan limit.--Total loans contracted by the Bank shall
not exceed $5,000,000,000,000.
(4) Interest charges on loans and other fees.--The Bank--
(A) shall charge fixed-rate interest, fees,
premiums, or discounts based on the risk associated
with a loan made by the Bank, taking into
consideration--
(i) the price of Treasury obligations of a
similar maturity or 1.6 percent per annum,
whichever is greater;
(ii) the credit rating of the borrowing
entity if expressly published, or an assessment
of the overall finances of the borrowing entity
indicating an ability to service the loan;
(iii) current and expected future economic
conditions, including expected improvements in
the economy and the borrowing entity's finances
resulting from the overall lending operations
of the Bank; and
(iv) whether the borrowing entity qualifies
as a disadvantaged community, and an interest
rate subsidy, subject to availability of funds;
(B) may, in connection with a loan extended by the
Bank, issue loan guarantees, insurance, coinsurance,
and reinsurance to borrowing entities, insurance
companies, financial institutions, or others, or groups
thereof, and charge fees based on a similar risk
analysis; and
(C) may charge for the review of any project
proposal in such amount as may be approved by the Board
to cover the costs of such review.
(5) Refinancing.--Subject to a full audit of the project
and borrower, and subject to Board review, the Bank may extend
the time limit for repayment of a loan, through renewal,
substitution of new obligations, or otherwise, with the maximum
time for such renewal to be approved by the Board. The Bank may
make such further loans as necessary for project completion, or
to assure loan repayment.
(6) Limitations on loans.--The Bank may not--
(A) provide loans to consumers or provide any other
loans not described under this Act; or
(B) engage in investment banking activities such as
underwriting securities or trust management for
customers.
(g) Capital for Loan Disbursements.--Once chartered as a deposit-
taking bank, the Bank is authorized to create funds in a deposit
account in the name of a borrower, in accordance with the loan
agreement, as each scheduled loan disbursement is made. The Bank shall
draw up an aggregate loan disbursement plan, for the information of the
Comptroller of the Currency and the Board of Governors of the Federal
Reserve System.
(h) Net Earnings.--After meeting current obligations, the Bank is
authorized to use its earnings, and all moneys which have been or may
hereafter be allocated to or borrowed by it, in the exercise of its
functions. From those monies, the Bank shall set aside loan-loss
provisions equal to a proportion of loan book value, as determined
appropriate by the Board. Net earnings of the Bank, after setting aside
loan-loss provisions and estimated forward cash flow needs, shall be
used for the payment of dividends to the United States Treasury, in an
annual amount to be determined by the Board. Any residual net earnings
shall be deposited into a trust fund to subsidize loans for
disadvantaged communities that are not able to repay infrastructure
loans on normal loan terms, in a manner to be determined by the Board.
Any direct Federal contributions from the budget for the purpose of
subsidizing disadvantaged communities may also be added and utilized
via the trust fund.
(i) Loan-Loss Provisions and Federal Contingent Liability.--In the
event of any losses, as determined by the Board, incurred on loans,
loan guarantees, insurance, or for capital investment and dividend
payments on stock issues under this Act, they shall be borne by the
Bank out of its loan-loss provisions. Any losses in excess thereof
shall be borne by the Secretary of the Treasury. That excess shall be
considered a contingent obligation backed by the full faith and credit
of the United States Government.
(j) Reserves.--The Bank shall maintain reserves against the
transaction accounts of the Bank in such amount as the Board may
determine appropriate, but not greater than 14 percent of the total
transaction accounts of the Bank greater than $25,000,000.
(k) Branches.--The Bank shall establish an office of lending and
deposit in each city that has a Federal reserve bank, via the internet,
and in any other location where the Board determines appropriate.
SEC. 204. FORMATION OF REGIONAL ECONOMIC ACCELERATOR PLANNING GROUPS.
(a) In General.--The Bank, through the branch offices established
under section 203(k), shall facilitate the organization of not fewer
than 7 regional economic accelerator planning groups, which shall be
defined by common economic, demographic, and infrastructure
connectivities.
(b) Duties.--The regional economic accelerator planning groups
may--
(1) organize by, and be composed of, State and local public
sector officials, including through multijurisdictional or
multistate agreements among agencies;
(2) identify economic megaregions, which shall consist of
hub cities, related towns and suburbs, manufacturing production
corridors, and rural areas woven together into the communities
where people of the United States live, work, and provide goods
or services for movement within the region, and to other
regions;
(3) identify infrastructure needs and priorities for
economics megaregions, with input from the American Society of
Civil Engineers, and other trade, business, and industrial
associations;
(4) develop regional economic accelerator plans, including
a pipeline of infrastructure projects and the strategic
placement of those infrastructure projects, needed to improve
supply chains, land use, and productivity within each economic
megaregion, while seeking to include all communities;
(5) define how those infrastructure projects will create
energy savings, improve the environment, improve jobs and
wages, create regional economic growth, and create growth in
regional tax income;
(6) identify where multijurisdictional agreements should be
enacted or strengthened to improve the development of
infrastructure projects that cross jurisdictional lines, such
as transportation improvements along the northeast corridor,
flood mitigation, water management to relieve drought
conditions in southwestern States, or development of a national
high-speed rail grid;
(7) identify Federal, State, or local laws and regulations
that should be streamlined to reduce infrastructure project
costs and approval times, while maintaining environmental and
safety objectives, and work towards streamlining those laws and
regulations;
(8) seek public input on the broad outlines of each
regional infrastructure development plan;
(9) provide the regional infrastructure development plans
to the Bank to inform the Bank on the selection of
infrastructure projects for financing; and
(10) assist entities formulating and submitting projects
for consideration of Bank financing on the definition, scope,
selection criteria, and other factors under section 205 that
will be considered in the approval process.
SEC. 205. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM THE BANK.
(a) In General.--Subject to subsection (e), the Bank may provide
financial assistance to an entity for an infrastructure project if the
project--
(1) meets the criteria described in, and requirements of,
this Act;
(2) has local, regional, or national significance; and
(3) is in the public interest.
(b) Applications.--To be considered for financial assistance from
the Bank for an infrastructure project, an entity shall submit to the
Bank an application at such time, in such manner, and containing such
information as the Bank may require in accordance with subsection (c).
(c) Guidelines for Infrastructure Projects.--The Executive
Committee and the Board shall establish standard operating procedures
and develop online application procedures for financial assistance from
the Bank.
(d) Criteria.--
(1) In general.--The Board shall evaluate and rate each
application received under subsection (b) based on the factors
appropriate for the type of the infrastructure project,
including--
(A) the consistency of the infrastructure project
with a regional infrastructure development plan that
builds connectivity in the project area and beyond, so
that maximum growth is achieved while leaving no
community behind;
(B) the results of a life-cycle projection of the
benefits, as compared to costs, of the infrastructure
project that incorporates the factors described in
subparagraphs (C) through (L);
(C) the extent to which the infrastructure project
would promote economic growth, including private
sector-led growth associated with the infrastructure
project;
(D) the extent to which the infrastructure project
contributes to job creation, including fair and
responsible employment practices and workforce
development to train workers in new skills, including
by union apprentice programs to train new hires;
(E) the extent to which the infrastructure project
provides environmental and public health benefits,
including a reduction in greenhouse gases, water
pollution, and air pollution, and the removal of lead
and other hazardous materials;
(F) whether the applicant has a demonstrated
ability to contract for design, construction,
operation, and maintenance of the infrastructure
project throughout its estimated useful life, including
by defining project objectives, selecting experienced
project managers, and utilizing performance-based
monitoring;
(G) whether the applicant has demonstrated an
understanding of the strategic importance of bundling,
sequencing, and correctly sizing projects, and adopting
value design and procurement procedures, so as to
realize long-term cost savings through a principle
known as ``dig, build, expand, or improve only once'';
(H) whether the applicant has demonstrated an
understanding of the importance of innovative and
state-of-the-art technologies that achieve project
reliability, efficiency, resiliency, sustainability,
security, and public safety;
(I) the extent to which the infrastructure project
preserves and repurposes existing infrastructure and
rationally connects to other categories of existing or
planned infrastructure projects;
(J) the extent to which the infrastructure project
promotes the domestic production of construction inputs
needed for projects that receive financial assistance
from the Bank;
(K) a categorical benefit as described in paragraph
(2); and
(L) any other criteria as determined by the Board.
(2) Categorical benefit.--A categorical benefit referred to
in paragraph (1)(K) is--
(A) for a transportation infrastructure project--
(i) a reduction in surface and air traffic
congestion, by road, transit, passenger rail,
freight rail, port or inland water travel, or
air travel, as measured by reductions in
transit, boarding, and total trip times;
(ii) an anticipated increase in capacity
for existing and expected new ridership or
transport use, including by high-speed rail;
(iii) a reduction in risks from maintenance
decline, or structural failure, over the
service life of the project;
(iv) the coordination of improvements in
commuter passenger operations, freight
transport, and new community design, with the
demographics of population, economic
production, and trade hubs according to a
regional infrastructure plan;
(v) an overall decline in greenhouse gas
emissions from surface and air transportation
infrastructure projects financed by the Bank;
(vi) an increase in access to affordable
transportation options, to improve access to
jobs, affordable housing, schools, medical
services, food and other essential community
services; or
(vii) improvements in safety for users,
passengers, and operators, as measured by a
reduction in fatalities and serious injuries;
(B) for an environmental infrastructure project--
(i) increased coastal and inland flood
mitigation and protection;
(ii) improvements in drinking water,
wastewater, or stormwater systems, through the
repair, expansion or replacement of those
systems;
(iii) a reduction in risk to any public
infrastructure from structural failure, or
damage, due to weather-related events, cyber or
physical attacks, or catastrophic wildfires; or
(iv) environmental improvements from the
removal of hazardous wastes or chemical
pollutants;
(C) for an energy infrastructure project--
(i) development of a system that provides
for any of the smart grid functions described
in section 1306(d) of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17386(d))
(commonly known as a ``smart grid''), with
modern security and resiliency systems;
(ii) expansion of transmission and
distribution capacity to cover new generation
suppliers, including a macrogrid overlay to
transport power from renewable sources, and new
generation demand, including from global
warming, or the electrification of vehicles or
rail transport systems;
(iii) enhancement of systems to balance
electricity supply and demand, curtail peak
demand, restore power outages, or coordinate
operating procedures among power-supplying
entities; or
(iv) energy-efficient buildings, including
clean energy designated retrofits;
(D) for a telecommunications infrastructure
project--
(i) completion of, or improvement in,
broadband and wireless access and affordability
in rural and disadvantaged communities not
served by the private sector; or
(ii) improvement of the global
telecommunication satellite network; and
(E) for a community development infrastructure
project--
(i) promotion of economic growth and
poverty reduction;
(ii) modernization of local land use
policies, including those that promote transit-
oriented development and location efficiency;
(iii) expansion in the provision of public
housing, or publicly assisted affordable
housing, to provide long-term affordability in
targeted, disadvantaged communities, for
families and persons with incomes equivalent to
those currently assisted, and improvement in
the physical condition of that housing;
(iv) replacement of schools that have
reached their service lifetime or expansion of
school facilities with growing populations or
to house new programs for workforce
development; or
(v) improvements in national, State, and
local parks and recreation facilities and
related open space land management.
(3) Stimulation of domestic production.--If the Bank
determines that any type of iron, steel, manufactured product,
or construction material is not produced in the United States
in sufficient and reasonably available quantities or of a
satisfactory quality to meet the infrastructure needs in the
United States, the Bank may solicit loan applications for
projects to increase or improve the domestic production of that
iron, steel, manufactured product, or construction material.
(4) Lender of last resort.--In selecting infrastructure
projects to receive financial assistance from the Bank, the
Board shall also lend for--
(A) an infrastructure project in an area of high
unemployment or a disadvantaged community, including a
workforce development plan to train workers in new
skills and connect those workers with job openings
financed by the Bank; and
(B) an infrastructure project--
(i) that leverages or complements Federal,
State, local, and private financing; or
(ii) for which the applicant demonstrates
that the additional capital could not be
obtained from commercial sources at reasonable
financing costs.
(e) Exclusions.--The Bank may not provide financial assistance for
any infrastructure project that subsidizes or otherwise encourages the
sale or lease of infrastructure currently owned or controlled by an
entity described in subparagraphs (A) through (G) of section 201(19),
or will result in the private control or operation of infrastructure
currently owned or controlled by such an entity under any agreement,
including a public-private partnership.
(f) Employee Protections.--The Bank may not provide financial
assistance for an infrastructure project involving reconstruction,
rehabilitation, replacement, or expansion that may impact current
employees on the project site, until the entity submitting an
application for an infrastructure project certifies to the Bank that
the entity is in compliance with section 213 with respect to the
interests of employees affected by the financial assistance.
(g) Emergency Procedures.--
(1) In general.--During the period described in paragraph
(2), the Board may waive such selection criteria and procedures
as the Board determines to be necessary in order to provide
loans more quickly for infrastructure projects--
(A) that reduce unemployment;
(B) that address the backlog of critical, shovel-
ready projects for which preliminary engineering or
permitting is already completed; or
(C) that address a critical safety or other public
need.
(2) Period described.--The period referred to in paragraph
(1) is the period beginning on the date of enactment of this
Act and ending on the later of--
(A) 1 year after the date on which the Bank begins
operations; and
(B) the date on which the Bank has provided a total
of $500,000,000,000 in loans.
SEC. 206. BOARD OF DIRECTORS.
(a) In General.--The Bank shall have a Board of Directors
consisting of 25 members, appointed by the President by and with the
advice and consent of the Senate.
(b) Qualifications.--The members of the Board shall include
individuals representing different regions of the United States, of
whom--
(1) 12 shall have not less than 15 years of industrial and
engineering experience;
(2) 1 shall be a representative of the AFL-CIO;
(3) 2 shall be representatives of North America's Building
Trades Unions;
(4) 2 shall be representatives of the Corps of Engineers;
(5) 2 shall have State and local public sector experience;
(6) 2 shall have finance experience;
(7) 2 shall have economic development experience; and
(8) 2 shall represent minority communities or disadvantaged
communities.
(c) Chairperson and Vice Chairperson.--At the time of appointment,
the President shall designate--
(1) 1 member of the Board to serve as chairperson; and
(2) 1 member of the Board to serve as vice chairperson.
(d) Terms.--
(1) In general.--Except as provided in paragraph (2), each
member shall be appointed for a term of 6 years.
(2) Initial staggered terms.--Of the initial members of the
Board--
(A) the chairperson and vice chairperson shall each
be appointed for terms of 6 years;
(B) 12 shall be appointed for a term of 4 years;
and
(C) 11 shall be appointed for a term of 2 years.
(e) Congressional Recommendations.--Not later than 30 days after
the date of enactment of this Act, the majority leader of the Senate,
the minority leader of the Senate, the Speaker of the House of
Representatives, and the minority leader of the House of
Representatives shall each submit to the President a recommendation for
appointment of a member of the Board, after consultation with the
appropriate committees of Congress.
(f) Date of Initial Nominations.--The initial nominations by the
President for appointment of members to the Board shall be made not
later than 60 days after the date of enactment of this Act.
(g) Vacancies.--
(1) In general.--A vacancy on the Board shall be filled in
the manner in which the original appointment was made.
(2) Appointment to replace during term.--A member of the
Board appointed to fill a vacancy occurring before the
expiration of the term for which the predecessor of the member
was appointed shall be appointed only for the remainder of the
term.
(3) Duration.--A member of the Board may serve after the
expiration of the term of the member until a successor has
taken office.
(h) Quorum.--At the time of any Board meeting, 75 percent of the
members confirmed by the Senate (rounded down to a whole number) shall
constitute a quorum.
(i) Reappointment.--A member of the Board may be reappointed by the
President in accordance with this section.
(j) Per Diem Reimbursement.--Members of the Board shall serve on a
part-time basis and shall receive a per diem when engaged in the actual
performance of Bank business, plus reasonable reimbursement for travel,
subsistence, and other necessary expenses incurred in the performance
of their duties.
(k) Limitations.--A member of the Board may not participate in any
review or decision affecting a project under consideration for
assistance under this Act if the member has, or is affiliated with a
person who has, an interest in the project.
(l) Responsibilities.--The Board shall--
(1) as soon as practicable after the date on which the last
member is appointed, establish an Executive Committee, risk
management committee and audit committee pursuant to this Act;
(2) not later than 180 days after the date on which the
last member is appointed, develop and approve the bylaws of the
Bank, and publish those bylaws in the Federal Register,
including bylaws for the regulation of the affairs and conduct
of the business of the Bank, consistent with the purpose,
goals, objectives, and policies described in this Act;
(3) ensure that the Bank is at all times operated in a
manner that is consistent with this Act, by--
(A) monitoring and assessing the effectiveness of
the Bank in achieving strategic goals;
(B) periodically reviewing internal policies
submitted by the chief executive officer;
(C) reviewing and approving annual business plans,
annual budgets, and long-term strategies submitted by
the chief executive officer;
(D) reviewing and approving annual reports
submitted by the chief executive officer;
(E) reviewing risk management and audit practices
of the Bank; and
(F) reviewing and approving all changes to the
organization of the Bank; and
(4) establishing such other criteria, requirements, and
procedures as the Board may consider to be appropriate in
carrying out this Act.
(m) Meetings.--
(1) Open to the public; notice.--All meetings of the Board
held to conduct the business of the Bank shall be open to the
public and shall be preceded by reasonable notice.
(2) Initial meeting.--The Board shall meet--
(A) not later than 90 days after the date on which
the last member is appointed; and
(B) at the call of the chairperson.
(3) Exception for closed meetings.--
(A) In general.--Pursuant to such rules as the
Board may establish through bylaws, the members may
close a meeting of the Board if, at the meeting, there
is likely to be disclosed information that could
adversely affect or lead to speculation--
(i) relating to an infrastructure project
under consideration for assistance under this
Act; or
(ii) in financial, securities, or
commodities markets or institutions, utilities,
or real estate.
(B) Notice.--The determination to close any meeting
of the Board shall be made in a meeting of the Board,
open to the public, and preceded by reasonable notice.
(C) Minutes.--The Board shall prepare minutes of
any meeting that is closed to the public and make those
minutes available as soon as the considerations
necessitating the closure of the meeting no longer
apply.
SEC. 207. POWERS AND LIMITATIONS OF THE BOARD.
(a) Powers.--In order to carry out the purposes of the Bank as
described in this Act, the Board shall be responsible for the approval
and monitoring of infrastructure projects, and shall have the following
powers:
(1) To make senior and subordinated direct loans on such
terms as the Board may determine to be appropriate to assist in
the financing or refinancing of an infrastructure project.
(2) Subject to the availability of funding, to develop
specialized loan programs, such as a disadvantaged communities
loan program, or a community cooperative startup, that provide
project financing on flexible repayment terms.
(3) To make loan guarantees on such terms as the Board may
determine to be appropriate to assist in the financing or
refinancing of an infrastructure project.
(4) To issue bonds to provide financing for infrastructure
projects from amounts made available from the issuance of those
bonds.
(5) To make agreements and contracts with any entity in
furtherance of the business of the Bank.
(6) To approve infrastructure loans financed in whole or in
part by the Bank after receiving recommendations from the
Executive Committee.
(7) To monitor infrastructure projects financed in whole or
in part by the Bank after receiving assessments from the
Executive Committee.
(8) To sue and be sued in the Bank's corporate capacity in
any court of competent jurisdiction, except that no attachment,
injunction, or similar process, may be issued against the
property of the Bank or against the Bank with respect to such
property.
(9) To indemnify the members of the Board and officers of
the Bank for liabilities arising out of the actions of the
Board and officers of the Bank in such capacity, in accordance
with, and subject to the limitations contained in, this Act.
(10) To serve as the primary liaison between the Bank and
Congress, the executive branch, and State and local
governments, and to represent the interests of the Bank.
(11) To exercise all other lawful powers that are necessary
or appropriate to carry out, and are consistent with, the
purposes of the Bank.
(b) Coordination With State and Local Regulatory Authorities.--The
provision of financial assistance by the Board pursuant to this Act
shall not--
(1) limit the right of any State or political subdivision
or other instrumentality of a State to approve or regulate
rates of return on private equity invested in an infrastructure
project; or
(2) otherwise supersede any State law or regulation
applicable to an infrastructure project.
(c) Federal Personnel Requests.--
(1) In general.--The Board may request the detail, on a
reimbursable basis, of personnel from other Federal agencies
with specific expertise not available from within the Bank,
including personnel with experience in the selection process
for competitive awards from--
(A) the Corps of Engineers;
(B) the Department of Transportation;
(C) the Department of Labor;
(D) the Department of Housing and Urban
Development;
(E) the Environmental Protection Agency;
(F) the Department of the Treasury;
(G) the Department of Commerce; and
(H) other relevant Federal agencies.
(2) Detail.--The head of any Federal agency--
(A) may detail, on a reimbursable basis, any
personnel of the agency requested by the Board; and
(B) shall not withhold unreasonably the detail of
any personnel requested by the Board.
SEC. 208. EXECUTIVE COMMITTEE.
(a) In General.--The Board shall establish an Executive Committee
consisting of 9 members, including--
(1) the chief executive officer, who shall serve as the
head of the Executive Committee;
(2) the chief risk officer;
(3) the chief operations officer;
(4) the chief loan origination officer;
(5) the chief compliance officer;
(6) the chief financial officer;
(7) the chief treasury officer;
(8) the chief asset and liability management officer; and
(9) the general counsel.
(b) Appointments.--A majority of the Board shall have the
authority--
(1) to appoint the members of the Executive Committee; and
(2) to define the duties of each member of the Executive
Committee in accordance with this Act, the bylaws of the Bank,
and requirements of the Board.
(c) Qualifications.--Each member of the Executive Committee and all
loan origination officers of the Bank shall have extensive experience
and expertise in retail banking, and in 1 or more of the following:
(1) Transportation infrastructure.
(2) Environmental infrastructure.
(3) Energy infrastructure.
(4) Telecommunications infrastructure.
(5) Public housing and urban or rural development.
(6) Economic development.
(7) Workforce development.
(8) Public finance.
(d) Duties of Chief Executive Officer.--The chief executive officer
shall have responsibility for the development and implementation of the
strategy of the Bank, including--
(1) the development and submission to the Board of the
annual business plans and budget;
(2) the development and submission to the Board of a long-
term strategic infrastructure development plan that is
consistent with regional plans presented to the Bank by
regional economic accelerator planning groups established under
section 204; and
(3) the development, revision, and submission to the Board
of other internal policies of the Bank.
(e) Duties of Executive Committee.--In order to carry out the
purposes of the Bank, the Executive Committee shall--
(1) establish and submit to the Board for approval
disclosure and application procedures for entities submitting
applications for infrastructure projects for assistance under
this Act;
(2) establish and submit to the Board for approval
standardized terms and conditions, fee schedules, or legal
requirements of a contract or program to carry out this Act;
(3) establish and submit to the Board for approval
guidelines for the selection and approval of infrastructure
projects and specific criteria for determining eligibility for
project selection, subject to the general criteria provided in
section 205;
(4) accept for consideration project proposals from
entities for the development of infrastructure projects in
accordance with this Act;
(5) provide recommendations to the Board and place project
proposals accepted by the Executive Committee on a list for
consideration for financial assistance from the Board; and
(6) establish a plan, and build capacity within the Bank,
to provide technical assistance to State and local governments,
regional economic accelerator planning groups established under
section 204, joint ventures, regional economic accelerator
agencies, and other borrowing entities on--
(A) the borrowing procedures and selection criteria
of the Bank;
(B) the development of a pipeline of projects
suitable for financing that meet the selection criteria
developed by the Bank;
(C) the development of specialized institutional
structures and cross-regional planning to help in the
planning of complex projects;
(D) best practices for design, construction, and
management, including those identified in global
infrastructure databases;
(E) contract evaluation methods, including
procurement value-for-money options; and
(F) institution strengthening relating to the
management of projects and work contracts, including
through performance-based project delivery.
(f) Vacancy.--A vacancy on the Executive Committee shall be filled
in the manner in which the original appointment was made.
(g) Compensation.--The compensation of a member of the Executive
Committee shall be determined by the Board.
(h) Removal.--A member of the Executive Committee may be removed at
the discretion of a majority of the Board.
(i) Term.--A member of the Executive Committee shall serve a term
of 6 years and may be reappointed in accordance with this section.
(j) Limitations.--
(1) In general.--During the period described in paragraph
(2), a member of the Executive Committee may not--
(A) hold any other public office;
(B) have any interest in an infrastructure project
considered by the Board; or
(C) have any interest in an entity seeking
financial assistance from the Bank for any
infrastructure project.
(2) Period described.--The period referred to in paragraph
(1) is the period--
(A) beginning on the date on which the member of
the Executive Committee is appointed; and
(B) ending on the date on which the member ceases
to serve on the Executive Committee.
SEC. 209. RISK MANAGEMENT COMMITTEE.
(a) Establishment.--The Board, in consultation with the chief loan
origination officer, shall establish a risk management committee
consisting of 5 members, headed by the chief risk officer.
(b) Appointment.--A majority of the Board shall have the
authority--
(1) to appoint the members of the risk management
committee; and
(2) to define the duties of the chief risk officer and each
remaining member of the risk management committee in accordance
with this Act, the bylaws of the Bank, and requirements of the
Board.
(c) Qualifications.--Each member of the risk management committee
shall have demonstrated experience and expertise in 1 or more of the
following:
(1) Treasury and asset and liability management.
(2) Investment regulations.
(3) Insurance.
(4) Credit risk management and credit evaluations.
(5) Infrastructure development projects.
(d) Duties of Chief Risk Officer.--The chief risk officer shall--
(1) have such functions, powers, and duties as may be
prescribed by this Act, the bylaws of the Bank, and the Board;
and
(2) report directly to the Board.
(e) Duties of Risk Management Committee.--The risk management
committee shall--
(1) develop overarching financial, credit, and operational
risk management guidelines and policies to be adhered to by the
Bank;
(2) develop conforming standards for loan agreements to
ensure diversification of lending activities by geographic
region, infrastructure project type, and inclusion of rural and
disadvantaged communities;
(3) ensure compliance with Federal and State laws referred
to in section 213;
(4) develop specific plans for all financial assistance
provided by the Bank, including subsidy programs for
disadvantaged communities and the inclusion of minorities,
women, and indigenous people, and disadvantaged business
participation in infrastructure projects financed by the Bank
in accordance with section 213;
(5) monitor the overall financial, credit, and operational
exposure of the Bank;
(6) establish a standing subcommittee to perform regular
credit evaluations and report on large infrastructure loans
extended by the Bank to monitor compliance with terms and
attainment of performance targets contained in loan agreements;
and
(7) provide financial recommendations to the Board for
approval.
(f) Vacancy.--A vacancy on the risk management committee shall be
filled in the manner in which the original appointment was made.
(g) Compensation.--The compensation of a member of the risk
management committee shall be determined by the Board.
(h) Removal.--A member of the risk management committee may be
removed at the discretion of a majority of the Board.
(i) Term.--A member of the risk management committee shall serve a
term of 6 years and may be reappointed in accordance with this section.
(j) Limitations.--
(1) In general.--During the period described in paragraph
(2), a member of the risk management committee may not--
(A) hold any other public office;
(B) have any interest in an infrastructure project
considered by the Board; or
(C) have any interest in an investment institution,
commercial bank, or other entity seeking financial
assistance from the Bank for any infrastructure
project.
(2) Period described.--The period referred to in paragraph
(1) is the period--
(A) beginning on the date on which the member of
the risk management committee is appointed; and
(B) ending on the date on which the member ceases
to serve on the risk management committee.
SEC. 210. AUDIT COMMITTEE.
(a) In General.--The Bank shall establish an audit committee
consisting of 5 members, headed by the chief compliance officer.
(b) Appointment.--A majority of the Board shall have the
authority--
(1) to appoint the members of the audit committee; and
(2) to define the duties of the chief compliance officer
and each remaining member of the audit committee in accordance
with this Act, the bylaws of the Bank, and requirements of the
Board.
(c) Qualifications.--Each member of the audit committee shall have
demonstrated experience and expertise in 1 or more of the following:
(1) Internal auditing.
(2) Internal investigations.
(3) Accounting practices.
(4) Financing practices.
(d) Duties of Chief Compliance Officer.--The chief compliance
officer shall--
(1) have such functions, powers, and duties as may be
prescribed by this Act, the bylaws of the Bank, and the Board;
and
(2) report directly to the Board.
(e) Duties of Audit Committee.--The audit committee shall--
(1) provide internal controls and internal auditing
activities for the Bank;
(2) maintain responsibility for the accounting activities
of the Bank;
(3) conduct internal investigations of the business
activities of the Bank;
(4) issue financial reports of the Bank; and
(5) complete reports with outside auditors and public
accountants appointed by the Board.
(f) Vacancy.--A vacancy on the audit committee shall be filled in
the manner in which the original appointment was made.
(g) Compensation.--The compensation of a member of the audit
committee shall be determined by the Board.
(h) Removal.--A member of the audit committee may be removed at the
discretion of a majority of the Board.
(i) Term.--A member of the audit committee shall serve a term of 6
years and may be reappointed in accordance with this section.
(j) Limitations.--
(1) In general.--During the period described in paragraph
(2), a member of the audit committee may not--
(A) hold any other public office;
(B) have any interest in an infrastructure project
considered by the Board; or
(C) have any interest in an investment institution,
commercial bank, or other entity seeking financial
assistance from the Bank for any infrastructure
project.
(2) Period described.--The period referred to in paragraph
(1) is the period--
(A) beginning on the date on which the member of
the audit committee is appointed; and
(B) ending on the date on which the member ceases
to serve on the audit committee.
SEC. 211. PERSONNEL.
(a) Compensation; Duties.--The chairperson of the Board, chief
executive officer, chief risk officer, and chief compliance officer
shall appoint, remove, fix the compensation of, and define the duties
of such qualified personnel to serve the Board, Executive Committee,
risk management committee, or audit committee, as applicable, as
necessary and prescribed by this Act, the bylaws of the Bank, and the
Board.
(b) Nondiscrimination and Equal Opportunity Employment.--
(1) In general.--The Bank shall not discriminate on the
basis of race, religion, color, national origin, age, physical
or mental handicap or disability, medical condition, marital
status, sex, sexual orientation, gender identity, pregnancy, or
ethnic or social origin against any employee or applicant for
employment.
(2) Inclusions.--Paragraph (1) shall apply to, at a
minimum, employment, upgrading, demotion or transfer,
recruitment or recruitment advertising, layoff or termination,
rates of pay or other forms of compensation, and selection for
training, including apprenticeship.
SEC. 212. SPECIAL INSPECTOR GENERAL FOR THE NATIONAL INFRASTRUCTURE
BANK.
(a) In General.--Beginning on the date on which the President
appoints a Special Inspector General for the Bank (referred to in this
section as the ``Special Inspector General'') under subsection (b),
there is established an Office of the Special Inspector General for the
Bank.
(b) Appointment of Inspector General; Removal.--
(1) Appointment.--The Special Inspector General for the
Bank shall be appointed by the President, by and with the
advice and consent of the Senate.
(2) Basis of appointment.--The appointment of the Special
Inspector General shall be made on the basis of integrity and
demonstrated ability in accounting, auditing, financial
analysis, law, management analysis, public administration, or
investigations.
(3) Timing of nomination.--The nomination of an individual
as Special Inspector General shall be made as soon as
practicable after the date of enactment of this Act.
(4) Removal.--The Special Inspector General shall be
removable from office in accordance with the provisions of
section 403(b) of title 5, United States Code.
(5) Rule of construction.--For purposes of section 7324 of
title 5, United States Code, the Special Inspector General
shall not be considered an employee who determines policies to
be pursued by the United States in the nationwide
administration of Federal law.
(6) Rate of pay.--The annual rate of basic pay of the
Special Inspector General shall be the annual rate of basic pay
for an Inspector General under section 403(e) of title 5,
United States Code.
(c) Duties.--The Special Inspector General shall--
(1) conduct, supervise, and coordinate audits and
investigations of the business activities of the Bank;
(2) establish, maintain, and oversee such systems,
procedures, and controls as the Special Inspector General
considers appropriate to discharge the duty under paragraph
(1); and
(3) carry out any other duties and responsibilities of
inspectors general under chapter 4 of title 5, United States
Code.
(d) Powers and Authorities.--
(1) In general.--In carrying out the duties specified in
subsection (c), the Special Inspector General shall have the
authorities provided in section 406 of title 5, United States
Code.
(2) Additional authority.--The Special Inspector General
shall carry out the duties specified in subsection (c)(1) in
accordance with section 404(b)(1) of title 5, United States
Code.
(e) Personnel, Facilities, and Other Resources.--
(1) Additional officers.--
(A) In general.--The Special Inspector General may
select, appoint, and employ such officers and employees
as may be necessary for carrying out the duties of the
Special Inspector General, subject to the provisions of
title 5, United States Code, governing appointments in
the competitive service, and the provisions of chapter
51 and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay
rates.
(B) Employment and compensation.--The Special
Inspector General may exercise the authorities of
subsections (b) through (i) of section 3161 of title 5,
United States Code (without regard to subsection (a) of
that section).
(2) Retention of services.--The Special Inspector General
may obtain services as authorized by section 3109 of title 5,
United States Code, at daily rates not to exceed the equivalent
rate prescribed for grade GS-15 of the General Schedule by
section 5332 of such title.
(3) Ability to contract for audits, studies, and other
services.--The Special Inspector General may enter into
contracts and other arrangements for audits, studies, analyses,
and other services with public agencies and with private
persons, and make such payments as may be necessary to carry
out the duties of the Special Inspector General.
(4) Request for information.--
(A) In general.--Upon request of the Special
Inspector General for information or assistance from
any department, agency, or other entity of the Federal
Government, the head of that entity shall, insofar as
is practicable and not in contravention of any existing
law, furnish the information or assistance to the
Special Inspector General or an authorized designee.
(B) Refusal to comply.--If information or
assistance requested by the Special Inspector General
is, in the judgment of the Special Inspector General,
unreasonably refused or not provided, the Special
Inspector General shall report the circumstances to the
Secretary, without delay.
(f) Reports.--
(1) Annual report.--Not later than 1 year after the date on
which the Special Inspector General is confirmed, and every
calendar year thereafter, the Special Inspector General shall
submit to the President and appropriate committees of Congress
a report summarizing the activities of the Special Inspector
General during the previous 1-year period ending on the date on
which such report is required.
(2) Public disclosures.--Nothing in this subsection
authorizes the public disclosure of information that is--
(A) specifically prohibited from disclosure by any
other provision of law;
(B) specifically required by Executive order to be
protected from disclosure in the interest of national
defense or national security or in the conduct of
foreign affairs; or
(C) a part of an ongoing criminal investigation.
SEC. 213. STATUS AND APPLICABILITY OF CERTAIN FEDERAL AND STATE LAWS.
(a) Compliance With Federal and State Laws.--
(1) In general.--The Bank, any entity that receives
financial assistance from the Bank, and any contractor or
subcontractor that receives funds from financial assistance
provided by the Bank shall comply with all applicable Federal
and State laws, including this section.
(2) Agreements.--The Bank shall require that an entity that
receives financial assistance from the Bank shall--
(A) confirm compliance with applicable Federal and
State laws in a loan agreement between the Bank and the
entity; and
(B) ensure, through a written agreement, that
contractors and subcontractors used by the entity for
an infrastructure project carried out with that
financial assistance are in compliance with applicable
Federal and State laws.
(b) Compliance With Davis-Bacon Act.--
(1) In general.--All laborers and mechanics employed by
contractors and subcontractors on infrastructure projects
funded directly by or assisted in whole or in part by or
through the Bank pursuant to this Act shall be paid wages at
rates not less than those prevailing on projects of a character
similar in the locality as determined by the Secretary of Labor
in accordance with subchapter IV of chapter 31 of title 40,
United States Code.
(2) Labor standards.--With respect to the labor standards
described in paragraph (1), the Secretary of Labor shall have
the authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section
3145 of title 40, United States Code.
(c) Compliance With Project Labor Agreements.--
(1) In general.--
(A) Covered states.--Any recipient of financial
assistance from the Bank in a covered State shall, for
purposes of an infrastructure project funded by such
financial assistance, be a party to a project labor
agreement with an applicable labor organization.
(B) States that are not covered states.--Any
recipient of financial assistance from the Bank in a
State that is not a covered State shall, for purposes
of the infrastructure project funded by such financial
assistance, permit voluntary collective bargaining with
respect to becoming a party to a project labor
agreement.
(2) Definitions.--For purposes of this subsection:
(A) Covered states.--The term ``covered State''
means a State in which--
(i) the laws of such State permit an entity
to require project labor agreements; or
(ii) the total amount of all construction
contracts financed by the Bank in such State is
not less than $35,000,000.
(B) Project labor agreement.--The term ``project
labor agreement'' means a pre-hire collective
bargaining agreement with one or more labor
organizations that establishes the terms and conditions
of employment for a specific construction project and
is described in section 8(f) of the National Labor
Relations Act (29 U.S.C. 158(f)).
(d) Buy America Requirement.--Section 70914 of the Infrastructure
Investment and Jobs Act (41 U.S.C. 8301 note; Public Law 117-58) shall
apply to the Bank, including financial assistance provided by the Bank.
(e) Nondiscrimination.--
(1) In general.--For the purpose of applying the
prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), of
disability under section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794), on the basis of sex under title IX of the
Education Amendments of 1972 (20 U.S.C. 1681 et seq.), programs
and activities funded or otherwise financially assisted in
whole or in part under this Act by the Bank, directly or
indirectly, are considered to be education programs and
activities receiving Federal financial assistance.
(2) Compliance with civil rights act of 1964.--The Bank,
along with contractors and subcontractors on infrastructure
projects funded directly by, or assisted in whole or in part by
the Bank, shall comply with titles VI and VII of the Civil
Rights Act of 1964 as to hiring and awarding contracts to build
projects. The Bank shall implement such titles, in part, by
including language in loan agreements to require contracted
work financed in whole or in part by the Bank to include an
equal opportunity clause as set out in section 60-1.4 of title
41 of the Code of Federal Regulations.
(f) Minority, Women, and Disadvantaged Business Enterprise
Participation.--For each fiscal year, the Bank shall ensure that not
less than 10 percent of the financial assistance provided by the Bank
is expended through small business concerns owned and controlled by
socially and economically disadvantaged individuals or qualified
HUBZone small business concerns (as those terms are defined in section
47113(a) of title 49, United States Code).
(g) Local Hiring Preference.--
(1) In general.--In providing financial assistance under
this Act, the Bank shall ensure that recipients of financial
assistance from the Bank implement a local, rural, or other
geographic or economic hiring preference relating to the use of
labor for construction of an infrastructure project funded by
the assistance, including prehire agreements, subject to any
applicable State and local laws, policies, and procedures, in
partnership with a registered apprenticeship program (as
defined in section 3131(e)(3)(B) of the Internal Revenue Code
of 1986), if applicable, or with a State board or local board
(as those terms are defined in section 3 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102)).
(2) Priority.--In carrying out paragraph (1), the Bank
shall ensure that recipients of financial assistance from the
Bank give priority in hiring to--
(A) individuals with a barrier to employment (as
defined in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102)), including ex-
offenders and disabled individuals;
(B) veterans; and
(C) individuals that represent populations that are
traditionally underrepresented in the infrastructure
workforce, such as women and racial and ethnic
minorities.
(h) Infrastructure Planning, Coordination and Nonduplication.--To
the maximum extent practicable, the Bank shall ensure that activities
of the Bank are coordinated with, and do not duplicate the efforts of,
any Federal or State department or agency.
(i) State and Local Permits.--The provision of financial assistance
by the Bank with respect to an infrastructure project does not relieve
any recipient of the assistance of any obligation to obtain required
State and local permits and approvals with respect to the
infrastructure project.
SEC. 214. EXEMPTION FROM CERTAIN LAWS.
(a) No Budget Authority for Contracts or Loans.--Section 504(b) of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall not
apply to any contract or loan under this Act.
(b) No Priority as a Federal Claim.--Section 3713 of title 31,
United States Code, shall not apply with respect to any indebtedness of
the Bank.
SEC. 215. RELATIONS WITH LOCAL FINANCIAL INSTITUTIONS.
(a) Complementary Provision of Services.--
(1) In general.--Except as provided in subsection (b), the
Bank--
(A) shall conduct loan activities in partnership
with local financial institutions; and
(B) shall not compete with local financial
institutions.
(2) Partnership.--A partnership under paragraph (1)(A) may
include the participation of a local financial institution in
loan requests, loan monitoring, or blended financing of project
loans.
(b) Exception.--The Bank may engage in loan activities without
partnering with a local financial institution if those loan activities
are not offered or provided by local financial institutions in the
jurisdiction in which the loan is being provided.
(c) Bank as a Clearinghouse.--For local financial institutions that
make the Bank a reserve depositary, the Bank may perform the functions
and render the services of a clearinghouse, including all facilities
for providing domestic and foreign exchange, or rediscounting paper on
such terms as the Board shall provide.
SEC. 216. AUDITS; REPORTS TO PRESIDENT AND CONGRESS.
(a) Accounting.--The books of account of the Bank shall be--
(1) maintained in accordance with generally accepted
accounting principles as used in the United States; and
(2) subject to an annual audit by independent public
accountants of nationally recognized standing, to be appointed
by the Board.
(b) Reports.--
(1) Board.--Not later than 90 days after the end of each
fiscal year, the Board shall submit to the President and
Congress a complete and detailed report with respect to the
preceding fiscal year that describes--
(A) a summary of the operations of the Bank;
(B) a schedule of the obligations of the Bank that
are outstanding at the end of that preceding fiscal
year, with a statement of the amounts issued and
redeemed or paid during that preceding fiscal year; and
(C) the status of infrastructure projects that have
received funding or other assistance pursuant to this
Act, including disclosure of all entities with a
development, ownership, or operational interest in
those infrastructure projects.
(2) GAO.--Not later than 5 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report evaluating activities
of the Bank that includes an assessment of the impact and
benefits of each funded infrastructure project, including a
review of how effectively each infrastructure project
accomplished the goals prioritized by the project criteria of
the Bank.
(c) Books and Records.--
(1) In general.--The Bank shall maintain adequate books and
records to support the financial transactions of the Bank with
a description of financial transactions and infrastructure
projects receiving funding, and the amount of funding for each
infrastructure project maintained on a publicly accessible
database.
(2) Public comment period.--The Bank shall provide a period
of not less than 30 days for public comment on each
infrastructure financing agreement posted on the database
referred to in paragraph (1) before providing final financing
for the infrastructure project.
(3) Audits by the secretary and gao.--The books and records
of the Bank shall be open to inspection by the Secretary and
the Comptroller General of the United States.
SEC. 217. BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
SEC. 218. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $50,000,000 for each of
fiscal years 2025 and 2026 for the initial organization of the Bank,
the Board, and Bank staff.
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