I
119THCONGRESS
1
STSESSION H. R. 1235
To establish the Federal Infrastructure Bank to facilitate investment in,
and the long-term financing of, economically viable United States infra-
structure projects that provide a public benefit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY12, 2025
Mr. W
EBSTERof Florida (for himself and Mr. CARBAJAL) introduced the fol-
lowing 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, economi-
cally viable United States infrastructure projects that
provide a public benefit, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Federal Infrastructure 4
Bank Act of 2025’’. 5
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SEC. 2. DEFINITIONS. 1
For the purposes of this Act: 2
(1) B
ANK.—The term ‘‘Bank’’ means the Fed-3
eral Infrastructure Bank established under section 4
4. 5
(2) E
LIGIBLE ENTITY.—The term ‘‘eligible enti-6
ty’’ means— 7
(A) a corporation, limited liability com-8
pany, or any other legally established corporate 9
form; 10
(B) a partnership, including a public-pri-11
vate partnership; 12
(C) a joint venture; 13
(D) a trust; 14
(E) a State; 15
(F) any other governmental entity, includ-16
ing a political subdivision or any other instru-17
mentality of a State; 18
(G) a revolving fund; or 19
(H) a State infrastructure bank. 20
(3) H
OLDING COMPANY .—The term ‘‘Holding 21
Company’’ means the ‘‘Federal Infrastructure Bank 22
Holding Company’’ established under section 3. 23
(4) I
NFRASTRUCTURE PROJECT .—The term 24
‘‘infrastructure project’’ means the construction, 25
consolidation, alteration, operations, maintenance, or 26
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repair of projects, which provide public benefit or 1
use, in the following categories: 2
(A) Highway and roadway facilities, in-3
cluding bridges and tunnels. 4
(B) Port or marine terminal facilities, in-5
cluding approaches to marine terminal facilities 6
or inland port facilities, and port or marine 7
equipment including fixed equipment to serve 8
approaches to marine terminals or inland ports. 9
(C) Airports, heliports, vertiports, space-10
ports, or air traffic control systems and facili-11
ties. 12
(D) Transmission or distribution pipelines. 13
(E) Facilities or equipment for energy 14
transmission, distribution, or storage. 15
(F) Intercity passenger or freight rail 16
lines, facilities, or equipment. 17
(G) Intercity passenger bus facilities or 18
equipment. 19
(H) Public transportation facilities or 20
equipment. 21
(I) Inland waterways. 22
(J) Intermodal facilities or equipment. 23
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(K) Water treatment and solid waste dis-1
posal facilities and associated infrastructure 2
such as pipes. 3
(L) Storm water management systems. 4
(M) Dams and levees. 5
(N) Any other infrastructure project which 6
the Bank identifies as providing a public benefit 7
with regards to infrastructure. 8
(5) R
ISK-BASED CAPITAL.—The term ‘‘risk- 9
based capital’’ shall have the meaning given that 10
term by the Board of Governors of the Federal Re-11
serve System. 12
(6) R
URAL.—The term ‘‘rural’’ means any area 13
not in a metropolitan statistical area with a popu-14
lation of 50,000 or greater. 15
(7) S
TATE.—The term ‘‘State’’ means each of 16
the 50 several States of the United States, the Dis-17
trict of Columbia, the Commonwealth of Puerto 18
Rico, American Samoa, Guam, the United States 19
Virgin Islands, the Commonwealth of the Northern 20
Mariana Islands, and each federally recognized In-21
dian Tribe. 22
(8) S
TATE INFRASTRUCTURE BANK .—The term 23
‘‘State infrastructure bank’’ means a State infra-24
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structure bank or multi-State infrastructure bank 1
established pursuant to— 2
(A) section 350 of the National Highway 3
System Designation Act of 1995; 4
(B) section 1511(l) of the Transportation 5
Equity Act for the 21st Century; 6
(C) section 610 of title 23, United States 7
Code; or 8
(D) any State law as an agency, compo-9
nent unit, or other governmental entity of the 10
State. 11
SEC. 3. SELECTION OF THE FORMATION AGENT. 12
(a) I
NGENERAL.—Within 60 days of the date of en-13
actment of this Act, the Secretary of the Treasury, in con-14
sultation with the Chairman of the Board of Governors 15
of the Federal Reserve System, shall select a Formation 16
Agent which shall— 17
(1) make and file with the Secretary of the 18
Treasury an organization certificate for the Bank in 19
accordance with such rules and regulations as the 20
Secretary may prescribe, including the establishment 21
of the Holding Company; and 22
(2) have significant experience in infrastructure 23
and infrastructure finance. 24
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(b) ESTABLISHMENT OF THE FEDERALINFRA-1
STRUCTUREBANKHOLDINGCOMPANY.—Within 30 days 2
after being selected under subsection (a), the Formation 3
Agent shall establish the Federal Infrastructure Bank 4
Holding Company, prescribe the governing structure of 5
the Holding Company, and establish the Federal Infra-6
structure Bank Holding Company Board of Directors, 7
which shall— 8
(1) initially consist of 7 members; 9
(2) be elected by the shareholders of the Hold-10
ing Company; 11
(3) serve 4-year terms, only 2 of which may be 12
consecutive; 13
(4) within the limitations of law and regulation, 14
determine and sign the articles of association that 15
govern the operations of the Holding Company, and 16
have the power to adopt, amend, and repeal bylaws 17
governing the performance of the powers and duties 18
granted to or imposed upon the Holding Company 19
by law; and 20
(5) select and effect the appointment of quali-21
fied persons to fill the office of the Chief Executive 22
Officer of the Bank and such other offices as may 23
be provided for in the bylaws of the Holding Com-24
pany and the Federal Infrastructure Bank. 25
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(c) EARNINGSANDRESERVESNOTGOVERNMENT 1
F
UNDS.—The earnings and reserves of the Holding Com-2
pany shall be the sole property of the Holding Company 3
and are not Government funds or public funds. 4
(d) T
REATMENT OFSHAREHOLDERS OF THE FORMA-5
TIONAGENT.—The Formation Agent shall issue equity se-6
curities of the Holding Company to each shareholder of 7
the Formation Agent, in an amount that the Formation 8
Agent determines has a value equal to the value of equity 9
securities of the Formation Agent held by such share-10
holder upon the establishment of the Holding Company. 11
SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUC-12
TURE BANK. 13
(a) I
NGENERAL.—The Formation Agent shall estab-14
lish the Federal Infrastructure Bank as a Delaware cor-15
poration and the Bank shall be a wholly owned subsidiary 16
of the Holding Company. 17
(b) F
EDERALBANKINGCHARTER.—The Comptroller 18
of the Currency shall grant a national bank charter to the 19
Bank. 20
(c) R
EGIONALOFFICES.—Within 5 years of the date 21
of enactment of this Act, the Bank shall establish regional 22
offices for the purpose of focusing on infrastructure 23
projects in different areas of the United States. 24
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(d) BOARD OFDIRECTORS.—The Board of Directors 1
of the Holding Company established under section 3 shall 2
be the initial Board of Directors of the Bank. 3
(e) E
ARNINGS AND RESERVESNOTGOVERNMENT 4
F
UNDS.—The earnings and reserves of the Bank are not 5
Government funds or public funds. 6
SEC. 5. FUNCTIONS OF THE BANK. 7
(a) I
NGENERAL.—The Bank shall provide equity in-8
vestments, direct loans, indirect loans, and loan guaran-9
tees to eligible entities for the planning, pre-development, 10
design, construction, operations or maintenance of rev-11
enue-producing infrastructure projects in the United 12
States with sufficient revenue sources and guarantees to 13
support the interest and principal payments to the Bank. 14
(b) S
UPPORT FORRURALPROJECTS.—Not less than 15
10 percent of the dollar amount of loans, equity invest-16
ments, and loan guarantees provided by the Bank shall 17
be with respect to infrastructure projects in rural areas. 18
(c) L
EVERAGINGBANKINVESTMENTS.—The Bank 19
shall attempt to cross subsidize non-revenue infrastructure 20
projects with revenue generating infrastructure projects to 21
diversify the loan portfolio. 22
(d) N
OCOMMERCIAL ORINVESTMENTBANKINGAC-23
TIVITIES.—Notwithstanding any other provision of law, 24
the Bank is prohibited from— 25
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(1) accepting customer deposits; or 1
(2) engaging in financial or investment banking 2
activities, except with respect to the Bank’s own rev-3
enues. 4
(e) P
LEDGE ANDCREDITFACILITIES.— 5
(1) P
LEDGE.—The Bank shall have the author-6
ity to pledge its loans to the discount window of the 7
Board of Governors of the Federal Reserve System. 8
(2) P
URCHASE OF OBLIGATIONS .—The Sec-9
retary of the Treasury may purchase obligations 10
issued by the Bank in the same manner and under 11
the same requirements that the Secretary purchases 12
obligations under section 306(c) of the Federal 13
Home Loan Mortgage Corporation Act (12 U.S.C. 14
1455(c)). 15
(f) L
EVERAGELIMITATION.—The Bank shall main-16
tain risk-based capital at no less than 10 percent, collec-17
tively for the Bank and the Holding Company. 18
(g) L
IFECYCLE.—The Bank shall ensure that infra-19
structure projects account for long-term operations, main-20
tenance, and life-cycle costs and obligations to ensure that 21
the infrastructure projects maximize the useful life of each 22
applicable asset. 23
(h) I
NFRASTRUCTURE DELIVERY.—The Bank, as a 24
clearinghouse for infrastructure finance, may provide im-25
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plementation advisory assistance, directly or indirectly, to 1
infrastructure projects. 2
(i) C
REDITRATING.—The Bank shall accept credit 3
ratings consistent with typical infrastructure market prac-4
tice to enhance deployment of capital. 5
(j) P
ROHIBITION ON FUNDING OF FOREIGN 6
P
ROJECTS.—The Bank is prohibited from providing eq-7
uity investments, direct loans, indirect loans, and loan 8
guarantees for infrastructure projects not located within 9
the United States. 10
(k) P
ROHIBITIONWITHRESPECT TOCHINA.—The 11
Bank is prohibited from providing equity investments, di-12
rect loans, indirect loans, and loan guarantees for infra-13
structure projects that are owned, directed, controlled, fi-14
nanced, or influenced by the Government of the People’s 15
Republic of China, the Chinese Communist Party, or the 16
People’s Liberation Army. 17
SEC. 6. HOLDING COMPANY SECURITIES. 18
(a) E
QUITYSECURITIES.— 19
(1) I
N GENERAL.—The Holding Company shall 20
issue such equity securities as the Board of Direc-21
tors of the Holding Company determines appro-22
priate. 23
(2) D
IVIDENDS.—The Holding Company may 24
make such dividend payments on the equity securi-25
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ties of the Holding Company as the Holding Com-1
pany determines appropriate. 2
(3) R
ESTRICTION ON VOTING RIGHTS .—Any 3
holder of an equity security of the Holding Company 4
that is a non-United States individual or entity shall 5
have no voting rights with respect to such equity se-6
curity. 7
(b) B
ONDS.— 8
(1) S
TANDARD BONDS.—The Holding Company 9
may issue standard bonds with maturities up to 30 10
years or longer, as needed. 11
(2) O
THER BONDS.—The Holding Company 12
may issue other bonds, notes, and marketable securi-13
ties with maturities and interest rates as the Hold-14
ing Company determines appropriate. 15
(3) A
UTHORITY TO PURCHASE BONDS .— 16
(A) I
N GENERAL.—The Secretary of the 17
Treasury and the Board of Governors of the 18
Federal Reserve System may purchase bonds 19
issued under this section. 20
(B) L
IMITATION.—The aggregate amount 21
of outstanding bonds purchased by the Sec-22
retary under this paragraph may not exceed 5 23
percent of the total amount of the outstanding 24
bonds of the Holding Company. 25
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(c) LEVERAGELIMITATION.—The Holding Company 1
shall maintain risk-based capital at no less than 10 per-2
cent, collectively for the Bank and the Holding Company. 3
(d) I
NVESTMENT LIMITATION ON NON-UNITED 4
S
TATESINDIVIDUALS ANDENTITIES.— 5
(1) Non-United States individuals and entities 6
may not hold more than 25 percent, in the aggre-7
gate, of the equity securities and bonds of the Hold-8
ing Company. 9
(2) The Formation Agent and Holding Com-10
pany are prohibited from issuing any bond, note, 11
marketable security, or other financial instrument to 12
any person or entity— 13
(A) affiliated with, owned by, or directed, 14
controlled, financed, or influenced by the Gov-15
ernment of the People’s Republic of China, the 16
Chinese Communist Party, or the People’s Lib-17
eration Army; or 18
(B) affiliated with, owned by, or directed, 19
controlled, financed, or influenced by a State 20
Sponsor of Terrorism, as so designated by the 21
Secretary of State. 22
SEC. 7. OVERSIGHT AND REGULATION. 23
The Board of Governors of the Federal Reserve Sys-24
tem shall— 25
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(1) have oversight and supervisory authority 1
over the Holding Company and the Bank, in order 2
to ensure the safe and sound operation of the Hold-3
ing Company and the Bank; and 4
(2) shall regulate Bank activities to ensure 5
compliance with the requirements set forth in this 6
Act. 7
SEC. 8. INFRASTRUCTURE GUARANTEE FUND. 8
The Bank shall establish an Infrastructure Guar-9
antee Fund that shall be used with respect to specific 10
loans or loan guarantees made by the Bank in the event 11
of any non-payment by the recipient of such loan or loan 12
guarantee. 13
SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM 14
TAXATION. 15
Effective for taxable years ending on or after the date 16
of enactment of this Act, the Holding Company and the 17
Bank, including franchises, capital, reserves, surplus, ad-18
vances, and income of the Holding Company or Bank, 19
shall be exempt from all taxation imposed by the United 20
States and any State, county, municipal, or local taxing 21
authority, except that any real property of the Holding 22
Company and the Bank shall be subject to State, county, 23
municipal, or local taxation to the same extent according 24
to its value as other real property is taxed. 25
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SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COM-1
PANY CREDIT. 2
(a) I
NGENERAL.—Subpart D of part IV of sub-3
chapter A of chapter 1 of the Internal Revenue Code of 4
1986 is amended— 5
(1) by adding at the end the following new sec-6
tion: 7
‘‘SEC. 45BB. FEDERAL INFRASTRUCTURE BANK HOLDING 8
COMPANY CREDIT. 9
‘‘(a) I
NGENERAL.—For purposes of section 38, in 10
the case of a taxpayer who holds a qualified Holding Com-11
pany equity investment on a credit allowance date of such 12
investment which occurs during the taxable year, the Fed-13
eral Infrastructure Bank Holding Company credit deter-14
mined under this section for such taxable year is an 15
amount equal to 10 percent of the amount paid to the 16
Holding Company for such investment at its original issue. 17
‘‘(b) C
REDITALLOWANCEDATE.—For purposes of 18
this section, the credit allowance date with respect to any 19
qualified Holding Company equity investment is— 20
‘‘(1) the date on which such investment is ini-21
tially made; and 22
‘‘(2) each of the 4 taxable years thereafter. 23
‘‘(c) Q
UALIFIEDHOLDINGCOMPANYEQUITYIN-24
VESTMENT.—For purposes of this section, the term ‘quali-25
fied Holding Company equity investment’ means any eq-26
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uity investment originally issued by the Holding Company 1
to the taxpayer under section 6(a)(1) of the Federal Infra-2
structure Bank Act of 2025 not later than 3 years after 3
the formation of the Federal Infrastructure Bank Holding 4
Company pursuant to section 3 of the Federal Infrastruc-5
ture Bank Act of 2025. 6
‘‘(d) H
OLDINGCOMPANY.—For purposes of this sec-7
tion, the term ‘Holding Company’ means the Federal In-8
frastructure Bank Holding Company established by the 9
Federal Infrastructure Bank Act of 2025.’’; and 10
(2) in the table of contents for such subpart, by 11
adding at the end the following: 12
‘‘45BB. Federal Infrastructure Bank Holding Company credit.’’.
(b) CONFORMINGAMENDMENT.—Section 38(b) of 13
such Code is amended by striking ‘‘plus’’ at the end of 14
paragraph (37), by striking the period at the end of para-15
graph (38) and inserting ‘‘, plus’’, and by adding at the 16
end the following new paragraph: 17
‘‘(39) the Federal Infrastructure Bank Holding 18
Company credit determined under section 45BB.’’. 19
(c) E
FFECTIVEDATE.—The amendments made by 20
this section shall apply to taxable years ending after the 21
date of the enactment of this Act. 22
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SEC. 11. RULE OF CONSTRUCTION. 1
Nothing in this Act may be construed as authorizing 2
the Federal Government to guarantee the assets of the 3
Bank or Holding Company. 4
Æ
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