Federal Infrastructure Bank Act of 2023 This bill establishes the Federal Infrastructure Bank and the Federal Infrastructure Bank Holding Company (FIBHC). The bank shall be a wholly owned subsidiary of the FIBHC. The bank must provide equity investments, direct loans, and loan guarantees for the planning, predevelopment, design, construction, operation or maintenance of infrastructure projects in the United States with sufficient revenue sources and guarantees to support the interest and principal payments to the bank. At least 10% of the loans, equity investments, and loan guarantees must be for infrastructure projects in rural areas. The Board of Governors of the Federal Reserve System shall have oversight and supervisory authority over the FIBHC and the bank. The bank must establish an Infrastructure Guarantee Fund to cover loans and loan guarantees in the event of nonpayment by loan recipients. The bill provides for a taxpayer credit in an amount equal to 10% of the amount such taxpayer paid to the FIBHC for an equity investment at its original issue.
If enacted, HB490 would create a structured entity designed to enhance the financing landscape for infrastructure projects by utilizing public and private funds. The establishment of the Federal Infrastructure Bank Holding Company, under which the Bank will operate, is intended to streamline investment strategies and regulatory oversight. The involvement of the Board of Governors of the Federal Reserve System provides a level of monitoring intended to ensure that financing activities are sound and address the financial viability of projects funded by the Bank.
House Bill 490, known as the Federal Infrastructure Bank Act of 2023, proposes the establishment of a Federal Infrastructure Bank to facilitate investment in and long-term financing of infrastructure projects across the United States. The bill mandates that the Bank provide equity investments, direct loans, and loan guarantees primarily aimed at revenue-producing infrastructure projects. Importantly, it stipulates that a minimum of 10% of the funding must be allocated to infrastructure projects located in rural areas, thereby addressing the financing needs of less populated regions.
However, the bill does contain non-negotiable parameters that may stir debate among stakeholders; for instance, it explicitly prohibits the Bank from funding projects outside the United States or those related to entities affiliated with certain government influences, particularly from China. This stance reflects broader national security concerns while also raising discussions on the potential limitations it imposes on funding source diversity for domestic projects. Additionally, critics may voice concerns regarding the fiscal implications of committing federal funding to infrastructure projects, particularly in economic downturns.