119-hr1235

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1235 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1235

 To establish the Federal Infrastructure Bank to facilitate investment 
 in, and the long-term financing of, economically viable United States 
 infrastructure projects that provide a public benefit, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 February 12, 2025

 Mr. Webster of Florida (for himself and Mr. Carbajal) introduced the 
 following bill; which was referred to the Committee on Transportation 
 and Infrastructure, and in addition to the Committees on Financial 
 Services, and Ways and Means, for a period to be subsequently 
 determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

 To establish the Federal Infrastructure Bank to facilitate investment 
 in, and the long-term financing of, economically viable United States 
 infrastructure projects that provide a public benefit, and for other 
 purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Federal Infrastructure Bank Act of 
2025''.

SEC. 2. DEFINITIONS.

 For the purposes of this Act:

    (1) Bank.--The term ``Bank'' means the Federal 
 Infrastructure Bank established under 

section 4.

    (2) Eligible entity.--The term ``eligible entity'' means--
        (A) a corporation, limited liability company, or 
 any other legally established corporate form;
        (B) a partnership, including a public-private 
 partnership;
            (C) a joint venture;
            (D) a trust;
        (E) a State;
        (F) any other governmental entity, including a 
 political subdivision or any other instrumentality of a 
 State;
        (G) a revolving fund; or
        (H) a State infrastructure bank.

    (3) Holding company.--The term ``Holding Company'' means 
 the ``Federal Infrastructure Bank Holding Company'' established 
 under 

section 3.

    (4) Infrastructure project.--The term ``infrastructure 
 project'' means the construction, consolidation, alteration, 
 operations, maintenance, or repair of projects, which provide 
 public benefit or use, in the following categories:
        (A) Highway and roadway facilities, including 
 bridges and tunnels.
        (B) Port or marine terminal facilities, including 
 approaches to marine terminal facilities or inland port 
 facilities, and port or marine equipment including 
 fixed equipment to serve approaches to marine terminals 
 or inland ports.
            (C) Airports, heliports, vertiports, spaceports, or 
 air traffic control systems and facilities.
            (D) Transmission or distribution pipelines.
        (E) Facilities or equipment for energy 
 transmission, distribution, or storage.
        (F) Intercity passenger or freight rail lines, 
 facilities, or equipment.
        (G) Intercity passenger bus facilities or 
 equipment.
        (H) Public transportation facilities or equipment.
            (I) Inland waterways.
        (J) Intermodal facilities or equipment.
        (K) Water treatment and solid waste disposal 
 facilities and associated infrastructure such as pipes.
            (L) Storm water management systems.
            (M) Dams and levees.
        (N) Any other infrastructure project which the Bank 
 identifies as providing a public benefit with regards 
 to infrastructure.

    (5) Risk-based capital.--The term ``risk-based capital'' 
 shall have the meaning given that term by the Board of 
 Governors of the Federal Reserve System.

    (6) Rural.--The term ``rural'' means any area not in a 
 metropolitan statistical area with a population of 50,000 or 
 greater.

    (7) State.--The term ``State'' means each of the 50 several 
 States of the United States, the District of Columbia, the 
 Commonwealth of Puerto Rico, American Samoa, Guam, the United 
 States Virgin Islands, the Commonwealth of the Northern Mariana 
 Islands, and each federally recognized Indian Tribe.

    (8) State infrastructure bank.--The term ``State 
 infrastructure bank'' means a State infrastructure bank or 
 multi-State infrastructure bank established pursuant to--
        (A) section 350 of the National Highway System 
 Designation Act of 1995;
        (B) section 1511
            (l) of the Transportation Equity 
 Act for the 21st Century;
            (C) section 610 of title 23, United States Code; or
            (D) any State law as an agency, component unit, or 
 other governmental entity of the State.

SEC. 3. SELECTION OF THE FORMATION AGENT.

    (a) In General.--Within 60 days of the date of enactment of this 
Act, the Secretary of the Treasury, in consultation with the Chairman 
of the Board of Governors of the Federal Reserve System, shall select a 
Formation Agent which shall--

    (1) make and file with the Secretary of the Treasury an 
 organization certificate for the Bank in accordance with such 
 rules and regulations as the Secretary may prescribe, including 
 the establishment of the Holding Company; and

    (2) have significant experience in infrastructure and 
 infrastructure finance.

    (b) Establishment of the Federal Infrastructure Bank Holding 
Company.--Within 30 days after being selected under subsection

    (a) , the 
Formation Agent shall establish the Federal Infrastructure Bank Holding 
Company, prescribe the governing structure of the Holding Company, and 
establish the Federal Infrastructure Bank Holding Company Board of 
Directors, which shall--

    (1) initially consist of 7 members;

    (2) be elected by the shareholders of the Holding Company;

    (3) serve 4-year terms, only 2 of which may be consecutive;

    (4) within the limitations of law and regulation, determine 
 and sign the articles of association that govern the operations 
 of the Holding Company, and have the power to adopt, amend, and 
 repeal bylaws governing the performance of the powers and 
 duties granted to or imposed upon the Holding Company by law; 
 and

    (5) select and effect the appointment of qualified persons 
 to fill the office of the Chief Executive Officer of the Bank 
 and such other offices as may be provided for in the bylaws of 
 the Holding Company and the Federal Infrastructure Bank.
            (c) Earnings And Reserves Not Government Funds.--The earnings and 
reserves of the Holding Company shall be the sole property of the 
Holding Company and are not Government funds or public funds.
            (d) Treatment of Shareholders of the Formation Agent.--The 
Formation Agent shall issue equity securities of the Holding Company to 
each shareholder of the Formation Agent, in an amount that the 
Formation Agent determines has a value equal to the value of equity 
securities of the Formation Agent held by such shareholder upon the 
establishment of the Holding Company.

SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUCTURE BANK.

    (a) In General.--The Formation Agent shall establish the Federal 
Infrastructure Bank as a Delaware corporation and the Bank shall be a 
wholly owned subsidiary of the Holding Company.

    (b) Federal Banking Charter.--The Comptroller of the Currency shall 
grant a national bank charter to the Bank.
            (c) Regional Offices.--Within 5 years of the date of enactment of 
this Act, the Bank shall establish regional offices for the purpose of 
focusing on infrastructure projects in different areas of the United 
States.
            (d) Board of Directors.--The Board of Directors of the Holding 
Company established under 

section 3 shall be the initial Board of 
Directors of the Bank.

    (e) Earnings and Reserves Not Government Funds.--The earnings and 
reserves of the Bank are not Government funds or public funds.

SEC. 5. FUNCTIONS OF THE BANK.

    (a) In General.--The Bank shall provide equity investments, direct 
loans, indirect loans, and loan guarantees to eligible entities for the 
planning, pre-development, design, construction, operations or 
maintenance of revenue-producing infrastructure projects in the United 
States with sufficient revenue sources and guarantees to support the 
interest and principal payments to the Bank.

    (b) Support for Rural Projects.--Not less than 10 percent of the 
dollar amount of loans, equity investments, and loan guarantees 
provided by the Bank shall be with respect to infrastructure projects 
in rural areas.
            (c) Leveraging Bank Investments.--The Bank shall attempt to cross 
subsidize non-revenue infrastructure projects with revenue generating 
infrastructure projects to diversify the loan portfolio.
            (d) No Commercial or Investment Banking Activities.--
Notwithstanding any other provision of law, the Bank is prohibited 
from--

    (1) accepting customer deposits; or

    (2) engaging in financial or investment banking activities, 
 except with respect to the Bank's own revenues.

    (e) Pledge and Credit Facilities.--

    (1) Pledge.--The Bank shall have the authority to pledge 
 its loans to the discount window of the Board of Governors of 
 the Federal Reserve System.

    (2) Purchase of obligations.--The Secretary of the Treasury 
 may purchase obligations issued by the Bank in the same manner 
 and under the same requirements that the Secretary purchases 
 obligations under 

section 306
            (c) of the Federal Home Loan 
 Mortgage Corporation Act (12 U.S.C. 1455
            (c) ).

    (f) Leverage Limitation.--The Bank shall maintain risk-based 
capital at no less than 10 percent, collectively for the Bank and the 
Holding Company.

    (g) Lifecycle.--The Bank shall ensure that infrastructure projects 
account for long-term operations, maintenance, and life-cycle costs and 
obligations to ensure that the infrastructure projects maximize the 
useful life of each applicable asset.

    (h) Infrastructure Delivery.--The Bank, as a clearinghouse for 
infrastructure finance, may provide implementation advisory assistance, 
directly or indirectly, to infrastructure projects.
            (i) Credit Rating.--The Bank shall accept credit ratings consistent 
with typical infrastructure market practice to enhance deployment of 
capital.

    (j) Prohibition on Funding of Foreign Projects.--The Bank is 
prohibited from providing equity investments, direct loans, indirect 
loans, and loan guarantees for infrastructure projects not located 
within the United States.

    (k) Prohibition With Respect to China.--The Bank is prohibited from 
providing equity investments, direct loans, indirect loans, and loan 
guarantees for infrastructure projects that are owned, directed, 
controlled, financed, or influenced by the Government of the People's 
Republic of China, the Chinese Communist Party, or the People's 
Liberation Army.

SEC. 6. HOLDING COMPANY SECURITIES.

    (a) Equity Securities.--

    (1) In general.--The Holding Company shall issue such 
 equity securities as the Board of Directors of the Holding 
 Company determines appropriate.

    (2) Dividends.--The Holding Company may make such dividend 
 payments on the equity securities of the Holding Company as the 
 Holding Company determines appropriate.

    (3) Restriction on voting rights.--Any holder of an equity 
 security of the Holding Company that is a non-United States 
 individual or entity shall have no voting rights with respect 
 to such equity security.

    (b) Bonds.--

    (1) Standard bonds.--The Holding Company may issue standard 
 bonds with maturities up to 30 years or longer, as needed.

    (2) Other bonds.--The Holding Company may issue other 
 bonds, notes, and marketable securities with maturities and 
 interest rates as the Holding Company determines appropriate.

    (3) Authority to purchase bonds.--
        (A) In general.--The Secretary of the Treasury and 
 the Board of Governors of the Federal Reserve System 
 may purchase bonds issued under this section.
        (B) Limitation.--The aggregate amount of 
 outstanding bonds purchased by the Secretary under this 
 paragraph may not exceed 5 percent of the total amount 
 of the outstanding bonds of the Holding Company.
            (c) Leverage Limitation.--The Holding Company shall maintain risk-
based capital at no less than 10 percent, collectively for the Bank and 
the Holding Company.
            (d) Investment Limitation on Non-United States Individuals and 
Entities.--

    (1) Non-United States individuals and entities may not hold 
 more than 25 percent, in the aggregate, of the equity 
 securities and bonds of the Holding Company.

    (2) The Formation Agent and Holding Company are prohibited 
 from issuing any bond, note, marketable security, or other 
 financial instrument to any person or entity--
        (A) affiliated with, owned by, or directed, 
 controlled, financed, or influenced by the Government 
 of the People's Republic of China, the Chinese 
 Communist Party, or the People's Liberation Army; or
        (B) affiliated with, owned by, or directed, 
 controlled, financed, or influenced by a State Sponsor 
 of Terrorism, as so designated by the Secretary of 
 State.

SEC. 7. OVERSIGHT AND REGULATION.

 The Board of Governors of the Federal Reserve System shall--

    (1) have oversight and supervisory authority over the 
 Holding Company and the Bank, in order to ensure the safe and 
 sound operation of the Holding Company and the Bank; and

    (2) shall regulate Bank activities to ensure compliance 
 with the requirements set forth in this Act.

SEC. 8. INFRASTRUCTURE GUARANTEE FUND.

 The Bank shall establish an Infrastructure Guarantee Fund that 
shall be used with respect to specific loans or loan guarantees made by 
the Bank in the event of any non-payment by the recipient of such loan 
or loan guarantee.

SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM TAXATION.

 Effective for taxable years ending on or after the date of 
enactment of this Act, the Holding Company and the Bank, including 
franchises, capital, reserves, surplus, advances, and income of the 
Holding Company or Bank, shall be exempt from all taxation imposed by 
the United States and any State, county, municipal, or local taxing 
authority, except that any real property of the Holding Company and the 
Bank shall be subject to State, county, municipal, or local taxation to 
the same extent according to its value as other real property is taxed.

SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended--

    (1) by adding at the end the following new section:

``

SEC. 45BB. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

 ``

    (a) In General.--For purposes of 

section 38, in the case of a 
taxpayer who holds a qualified Holding Company equity investment on a 
credit allowance date of such investment which occurs during the 
taxable year, the Federal Infrastructure Bank Holding Company credit 
determined under this section for such taxable year is an amount equal 
to 10 percent of the amount paid to the Holding Company for such 
investment at its original issue.
 ``

    (b) Credit Allowance Date.--For purposes of this section, the 
credit allowance date with respect to any qualified Holding Company 
equity investment is--
 ``

    (1) the date on which such investment is initially made; 
 and
 ``

    (2) each of the 4 taxable years thereafter.
 ``
            (c) Qualified Holding Company Equity Investment.--For purposes of 
this section, the term `qualified Holding Company equity investment' 
means any equity investment originally issued by the Holding Company to 
the taxpayer under 

section 6

    (a)

    (1) of the Federal Infrastructure Bank 
Act of 2025 not later than 3 years after the formation of the Federal 
Infrastructure Bank Holding Company pursuant to 

section 3 of the 
Federal Infrastructure Bank Act of 2025.
 ``
            (d) Holding Company.--For purposes of this section, the term 
`Holding Company' means the Federal Infrastructure Bank Holding Company 
established by the Federal Infrastructure Bank Act of 2025.''; and

    (2) in the table of contents for such subpart, by adding at 
 the end the following:

``45BB. Federal Infrastructure Bank Holding Company credit.''.

    (b) Conforming Amendment.--

Section 38

    (b) of such Code is amended by 
striking ``plus'' at the end of paragraph

    (37) , by striking the period 
at the end of paragraph

    (38) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
 ``

    (39) the Federal Infrastructure Bank Holding Company 
 credit determined under 

section 45BB.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 11. RULE OF CONSTRUCTION.

 Nothing in this Act may be construed as authorizing the Federal 
Government to guarantee the assets of the Bank or Holding Company.
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