Federal Infrastructure Bank Act of 2025
Sponsored By: Representative Webster (FL)
In Committee
Summary
The Federal Infrastructure Bank would create a new, federally chartered bank to provide long-term loans, equity investments, and loan guarantees for U.S. infrastructure projects. It also creates a companion holding company and a 10 percent tax credit to encourage early private investment in that holding company.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 6 benefits, 1 costs, 0 mixed.
10% credit for Bank investors
Investors would be able to claim a refundable tax credit equal to 10% of the original amount they paid for eligible Holding Company equity. A 10% credit would be available on the initial investment date and again in each of the next four years, if the investor still holds the shares on each credit date. The equity must be originally issued to the investor within three years after the Holding Company is formed. The credit would apply to tax years ending after enactment.
Financing for U.S. infrastructure projects
The Bank would be able to make equity investments, loans, and loan guarantees for revenue-producing projects in the U.S. Eligible sponsors would include companies, partnerships (including public‑private partnerships), trusts, states, and local governments. Projects could include highways, bridges, ports, airports, energy lines and storage, rail, transit, water, and similar public‑benefit assets. At least 10% of all financing dollars would go to rural areas (outside metro areas of 50,000 or more). The Bank would run a guarantee fund to cover losses on specific loans if a borrower does not pay, accept market‑standard credit ratings, and require life‑cycle cost planning for the projects it finances.
Holding company bond sales and backstops
The Holding Company would be able to sell long‑term bonds, including 30‑year or longer maturities. The Federal Reserve and Treasury could buy these bonds, but Treasury’s holdings could not be more than 5% of all Holding Company bonds outstanding. The Bank could also pledge its loans at the Fed’s discount window. Treasury purchases of Bank obligations would follow the same framework used for a similar housing finance statute.
New infrastructure bank with safeguards
This bill would set up a Federal Infrastructure Bank and a Holding Company. Treasury would pick a Formation Agent within 60 days of enactment, and the Holding Company would be created within 30 days after selection. A seven-member board with four-year terms would run it, and regional offices would open within five years. The Federal Reserve would supervise the Bank, which must keep at least 10% risk-based capital. The Bank would not take customer deposits or do investment banking, and its earnings would not be treated as government funds. The law would also say there is no federal guarantee of the Bank’s or Holding Company’s assets.
Tax exemption for Bank and Holding
The Bank and its Holding Company would be exempt from most federal, state, and local taxes on their franchises, capital, reserves, surplus, advances, and income. Real estate they own would still be subject to regular property taxes. This would apply to taxable years ending on or after enactment.
Limits on foreign ties and ownership
The Bank would be barred from funding projects outside the United States. It would also be barred from funding projects tied to the Chinese government, Communist Party, or military. Non‑U.S. persons could own no more than 25% in total of the Holding Company’s equity and bonds. The Holding Company could not issue securities to groups tied to those entities or to any State Sponsor of Terrorism.
Advisory help for infrastructure projects
The Bank would act as a clearinghouse and could provide advisory help to project sponsors, states, and localities. This could make planning and financing easier and lower deal costs for smaller or first‑time sponsors.
Sponsors & CoSponsors
Sponsor
Webster (FL)
FL • R
Cosponsors
Rep. Carbajal, Salud O. [D-CA-24]
CA • D
Sponsored 2/12/2025
Rep. Deluzio, Christopher R. [D-PA-17]
PA • D
Sponsored 2/21/2025
Stansbury
NM • D
Sponsored 11/4/2025
Roll Call Votes
No roll call votes available for this bill.
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