HR 1235
Federal Infrastructure Bank Act of 2025
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Bill overview
This bill establishes the Federal Infrastructure Bank and its holding company to provide financing for infrastructure projects across the United States. The bank will offer equity investments, loans, and loan guarantees, with a minimum of 10% of funds directed towards rural areas. It is overseen by the Federal Reserve and prohibited from funding projects influenced by the Chinese government. The bill also creates a tax credit for investors in the holding company and establishes an Infrastructure Guarantee Fund to cover loan defaults.
Key provisions
- Establishes the Federal Infrastructure Bank and Federal Infrastructure Bank Holding Company.
- Requires at least 10% of loans, investments, and guarantees to support rural infrastructure projects.
- Prohibits funding of infrastructure projects owned or controlled by the Chinese government.
- The Board of Governors of the Federal Reserve System will oversee the bank and holding company.
- Creates an Infrastructure Guarantee Fund to cover loan defaults.
- Provides a tax credit for investors in the holding company.
- The bank is prohibited from engaging in commercial or investment banking activities.
- Establishes a process for the Formation Agent to select and establish the bank and holding company.
Who is affected
- Corporations
- State and Governmental Entities
- Investors
- Rural Communities
- Infrastructure Project Developers
Notable changes
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Primary sponsor
Cosponsors
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119th CONGRESS — 1st Session
H. R. 1235
IN THE HOUSE OF REPRESENTATIVES
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.
This Act may be cited as the Federal Infrastructure Bank Act of 2025
.
For the purposes of this Act:
The term Bank means the Federal Infrastructure Bank established under section 4.
The term eligible entity means—
a partnership, including a public-private partnership;
a joint venture;
a trust;
a State;
any other governmental entity, including a political subdivision or any other instrumentality of a State;
a revolving fund; or
a State infrastructure bank.
The term Holding Company means the Federal Infrastructure Bank Holding Company
established under section 3.
Highway and roadway facilities, including bridges and tunnels.
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.
Airports, heliports, vertiports, spaceports, or air traffic control systems and facilities.
Transmission or distribution pipelines.
Facilities or equipment for energy transmission, distribution, or storage.
Intercity passenger or freight rail lines, facilities, or equipment.
Intercity passenger bus facilities or equipment.
Public transportation facilities or equipment.
Inland waterways.
Intermodal facilities or equipment.
Water treatment and solid waste disposal facilities and associated infrastructure such as pipes.
Storm water management systems.
Dams and levees.
Any other infrastructure project which the Bank identifies as providing a public benefit with regards to infrastructure.
The term risk-based capital shall have the meaning given that term by the Board of Governors of the Federal Reserve System.
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.
The term State infrastructure bank means a State infrastructure bank or multi-State infrastructure bank established pursuant to—
section 350 of the National Highway System Designation Act of 1995;
section 1511(l) of the Transportation Equity Act for the 21st Century;
section 610 of title 23, United States Code; or
any State law as an agency, component unit, or other governmental entity of the State.
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
have significant experience in infrastructure and infrastructure finance.
initially consist of 7 members;
be elected by the shareholders of the Holding Company;
serve 4-year terms, only 2 of which may be consecutive;
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
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.
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.
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.
The Comptroller of the Currency shall grant a national bank charter to the Bank.
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.
The Board of Directors of the Holding Company established under section 3 shall be the initial Board of Directors of the Bank.
The earnings and reserves of the Bank are not Government funds or public funds.
accepting customer deposits; or
engaging in financial or investment banking activities, except with respect to the Bank’s own revenues.
The Bank shall have the authority to pledge its loans to the discount window of the Board of Governors of the Federal Reserve System.
The Bank, as a clearinghouse for infrastructure finance, may provide implementation advisory assistance, directly or indirectly, to infrastructure projects.
The Bank shall accept credit ratings consistent with typical infrastructure market practice to enhance deployment of capital.
The Bank is prohibited from providing equity investments, direct loans, indirect loans, and loan guarantees for infrastructure projects not located within the United States.
The Holding Company shall issue such equity securities as the Board of Directors of the Holding Company determines appropriate.
The Holding Company may make such dividend payments on the equity securities of the Holding Company as the Holding Company determines appropriate.
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.
The Holding Company may issue standard bonds with maturities up to 30 years or longer, as needed.
The Holding Company may issue other bonds, notes, and marketable securities with maturities and interest rates as the Holding Company determines appropriate.
The Secretary of the Treasury and the Board of Governors of the Federal Reserve System may purchase bonds issued under this section.
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.
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.
The Formation Agent and Holding Company are prohibited from issuing any bond, note, marketable security, or other financial instrument to any person or entity—
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
affiliated with, owned by, or directed, controlled, financed, or influenced by a State Sponsor of Terrorism, as so designated by the Secretary of State.
The Board of Governors of the Federal Reserve System shall—
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
shall regulate Bank activities to ensure compliance with the requirements set forth in this Act.
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.
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.
by adding at the end the following new section:
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.
For purposes of this section, the credit allowance date with respect to any qualified Holding Company equity investment is—
the date on which such investment is initially made; and
each of the 4 taxable years thereafter.
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 theFederal Infrastructure Bank Act of 2025
.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
.in the table of contents for such subpart, by adding at the end the following:
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:
The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
Nothing in this Act may be construed as authorizing the Federal Government to guarantee the assets of the Bank or Holding Company.