Sponsors (4)
The bill mobilizes private capital and creates a federally chartered infrastructure bank to speed and broaden infrastructure financing (including rural projects), but does so by granting tax breaks and private control that reduce public revenues, concentrate benefits, and create contingent taxpayer exposure and regulatory trade‑offs.
State and local governments, tribes, and private project sponsors gain access to a dedicated Federal Infrastructure Bank (equity, loans, guarantees) and a broad list of eligible project types, substantially increasing the chance that local infrastructure (roads, ports, water, energy, transit, broadband, etc.) will receive financing.
Investors and the Holding Company can attract capital through a 10% investor tax credit, long‑term bond and equity issuance authority, and permission to pledge loans to the Fed / Treasury purchases—improving funding flexibility and lowering financing costs for projects and borrowers.
Taxpayers and the financial system are protected by explicit non‑guarantee language, Fed oversight, and minimum risk‑based capital requirements intended to make the Bank/Holding Company more resilient and reduce the chance of taxpayer bailouts.
Taxpayers face reduced federal and state/local revenue from the investor tax credit and broad tax exemptions for the Holding Company and Bank, increasing deficits or shifting tax burdens to others.
Even without an explicit federal guarantee, Treasury/Fed purchases and the perception of backstops create contingent taxpayer liabilities and exposure if loans or bonds sour.
Regulatory and capitalization rules (OCC charter, minimum 10% risk‑based capital, prohibition on deposits/commercial banking) could constrain lending capacity, raise financing costs, and slow deployment of funds for projects.
Based on analysis of 11 sections of legislative text.
Creates a Federal Infrastructure Bank and Holding Company to finance U.S. infrastructure, offers multi-year investor tax credits, sets capital/ownership rules, and exempts the entities from most taxes.
Introduced February 12, 2025 by Daniel A. Webster · Last progress February 12, 2025
Creates a new federally chartered Federal Infrastructure Bank and a private Holding Company to finance U.S. infrastructure projects, sets rules for their governance, capital, investor limits, and supervision, and offers a multi-year tax credit to investors who buy initial Holding Company equity. It also exempts the Bank and Holding Company from most federal and state/local taxes (except local property taxes), requires a minimum risk-based capital level, limits foreign ownership and certain foreign-linked recipients, and directs the Treasury and Federal Reserve to have backstop authorities for certain securities.