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LouisianaHB 11572026 Regular SessionHouseWALLET

TRANSPORTATION DEPT: Provides for funding to certain entities for infrastructure related projects within the Department of Transportation and Development (EN SEE FISC NOTE SD EX)

Sponsored By: Ryan Bourriaque (Republican)

Signed by Governor

FinanceTransportation, Highways and Public Works

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

Early participating communities can borrow cheaper

Beginning July 1, 2026, the board may approve lower-interest loans during the bank’s initial implementation phase. Eligible local governments must have materially helped establish, fund, or develop the bank. Loans must follow board policies and require full repayment of principal. Reduced-interest terms must be limited in duration and scope and disclosed in the annual report.

State oversight guards infrastructure bank borrowing

Beginning July 1, 2026, State Bond Commission approval is required before the bank issues bonds, notes, or other debt. Approval also covers use of state credit, revenues, or taxing power and arrangements creating state debt or a moral obligation. Using federal credit programs to fund the bank also requires commission approval. The bank coordinates with transportation, treasury, and economic development agencies without replacing their authority. Its board includes public officials and banking and accounting members; appointed members serve three-year terms. The board sets lending standards, financial controls, risk limits, and default procedures. Annual reports to the Governor and Legislature cover funding, loan performance, defaults, leverage, project results, and reduced-interest loans. The bank must obtain an independent annual financial audit and report to the Legislature before expanding its program.

Louisiana creates loans for transportation projects

The law creates the Louisiana State Infrastructure Bank in the governor’s office and a transportation fund in the state treasury. Beginning July 1, 2026, the bank’s financing authority covers only eligible public infrastructure projects. Authorized local governments and legally eligible private project sponsors can receive loans, guarantees, and other repayable help. Grants are barred unless federal law requires them; private borrowers must provide adequate security. The fund has Highway, Transit, Rail, and State-Funded Accounts, supported by permitted state money, federal sources, investment earnings, repayments, and gifts. Highway projects must meet Title 23 rules; transit projects must meet Title 49 rules; rail projects must meet Subtitle V rules. The State-Funded Account cannot receive Title 23 or Title 49 money and can cover public transportation costs such as design, permits, and right-of-way. Repayments return to their original accounts, and unused money stays in the fund after year-end. The Treasurer keeps separate account records and divides investment earnings and costs among accounts in proportion to their contributions. Deposits remain subject to the state constitution’s bond-payment priority. Beginning July 1, 2026, the bank cannot take public deposits, offer consumer or commercial banking, or compete with private banks. It can hold government and private-entity deposits as allowed by law.

Project borrowers get capped financing costs

Beginning July 1, 2026, loan interest can be fixed or changing, but cannot exceed market rates. Fees cannot exceed rates used by commercial banks. Repayment schedules can track project completion, revenue starts, or the start of contracted availability payments. Loans generally cannot last more than 30 years after the first payment; federal law can allow longer terms for federal accounts. The bank may require security and seek repayment remedies, including legally permitted withholding of state money owed to borrowers who default. Security can include project revenues or pledged taxes, so repayment can draw on tolls, fares, fees, or local taxes.

Public project borrowers face application checks

Beginning July 1, 2026, applications need a public agency or local government recommendation confirming eligibility and public benefit. Projects need technical review, required agency approvals or permits, and selection by the bank’s board. Local governments must submit an authorizing resolution stating the loan’s maximum principal, rate, and term. Private applicants need proof they can make a binding commitment and a public sponsor’s recommendation. The board reviews feasibility, readiness, public benefit, risk, repayment ability, and other committed funding. It may favor rural or underserved communities and projects with limited access to traditional financing.

Sponsors & Cosponsors

Sponsor

  • Ryan Bourriaque

    Republican • House

Cosponsors

  • Tehmi Jahi Chassion

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 164 • No: 0

Senate vote • 5/20/2026

Rules suspended. Read by title, passed by a vote of 32 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

Yes: 32 • No: 0

House vote • 4/28/2026

Read third time by title, amended, roll called on final passage, yeas 98, nays 0. Finally passed, title adopted, ordered to the Senate.

Yes: 98 • No: 0

House vote • 4/22/2026

Reported with amendments

Yes: 19 • No: 0

House vote • 4/7/2026

Reported favorably

Yes: 15 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 581.

    5/29/2026House

  2. Effective date: 07/01/2026.

    5/29/2026House

  3. Sent to the Governor for executive approval.

    5/26/2026House

  4. Received from the Senate without amendments.

    5/25/2026House

  5. Enrolled and signed by the Speaker of the House.

    5/25/2026House

  6. Signed by the President of the Senate.

    5/25/2026Senate

  7. Rules suspended. Read by title, passed by a vote of 32 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

    5/20/2026Senate

  8. Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.

    5/13/2026Senate

  9. Read by title and referred to the Legislative Bureau.

    5/12/2026Senate

  10. Reported favorably.

    5/11/2026Senate

  11. Read second time by title and referred to the Committee on Finance.

    5/4/2026Senate

  12. Received in the Senate. Read first time by title and placed on the Calendar for a second reading.

    4/29/2026Senate

  13. Read third time by title, amended, roll called on final passage, yeas 98, nays 0. Finally passed, title adopted, ordered to the Senate.

    4/28/2026House

  14. Read by title, amended, ordered reengrossed, passed to 3rd reading.

    4/23/2026House

  15. Scheduled for floor debate on 04/28/2026.

    4/23/2026House

  16. Reported with amendments (19-0).

    4/22/2026House

  17. Read by title, ordered engrossed, recommitted to the Committee on Appropriations.

    4/8/2026House

  18. Reported favorably (15-0).

    4/7/2026House

  19. Read by title, under the rules, referred to the Committee on Transportation, Highways and Public Works.

    4/1/2026House

  20. Read by title. Lies over under the rules.

    3/31/2026House

Bill Text

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