Sponsors (2)
The bill directs interest from covered transmission loans to provide predictable local funding for infrastructure, conservation, workforce training, and transparency protections for host communities — at the cost of diverting loan interest (which may raise financing costs, complicate federal administration, and create limits and uncertainties tied to program rules and appropriations).
Host communities (local governments and Tribes) receive ongoing targeted payments from interest on covered transmission loans to fund local projects and services.
Communities can use up to 80% of those funds for infrastructure and essential services (schools, hospitals, roads, broadband), directly improving local public services and connectivity.
Students and community anchor institutions gain expanded broadband and digital learning capacity through allowable uses of the payments, improving education access and connectivity.
Borrowers, project developers, or the Treasury lose a portion of interest revenue diverted to the Fund, which could reduce funds available to repay loans or the Treasury and may lead to higher long‑term borrowing costs.
Payments depend on future appropriations, so fund disbursements could be delayed, reduced, or uncertain if Congress does not provide or limits funding.
Shifting interest to host-community payments could be perceived as increasing costs for borrowers or developers and may discourage transmission investment or raise project financing costs.
Based on analysis of 2 sections of legislative text.
Creates a Treasury-managed fund, paid from a portion of interest on certain federal transmission loans, to make payments to host communities affected by eligible transmission projects.
Introduced September 17, 2025 by Peter Welch · Last progress September 17, 2025
Creates a Treasury-managed Community Economic Development Transmission Fund to pay local host communities and Indian Tribes that are affected by certain large transmission projects. The Fund is financed by a portion of interest collected on specified federal transmission loans and is administered by the Secretary of Energy, with deposits set annually in consultation with the Treasury. Host communities must request payment within one year of receiving notice and certify eligible uses; payments are limited to one per host community per eligible project and must be made no later than 18 months after project construction begins. The Secretary must adopt a disbursement formula that preserves Fund solvency, incorporates stakeholder input, and includes protections for small-population communities, while amounts in the Fund are released as provided in appropriations Acts.