Federal Infrastructure Bank Act of 2025
Federal Infrastructure Bank Act of 2025
Plain Language Summary
# Federal Infrastructure Bank Act of 2025 - Summary **What It Would Do** This bill would create a new Federal Infrastructure Bank (along with a holding company) to provide financial support for infrastructure projects across the United States. The bank would offer three types of help: direct loans, equity investments (money in exchange for partial ownership), and loan guarantees (promising to pay if a borrower defaults). These funds would support projects like roads, bridges, utilities, and other revenue-generating infrastructure that can generate income to repay the loans. **Who It Affects and Key Rules** The funding would be available to corporations, joint ventures, states, and local governments. A requirement mandates that at least 10% of all loans and investments go to rural infrastructure projects.
The bill includes a restriction prohibiting funding for any infrastructure projects influenced or controlled by the Chinese government or Communist Party. Projects must have reliable revenue sources to ensure they can pay back the bank. **Current Status** The bill (HR 1235) is currently in committee in the House of Representatives during the 119th Congress. It has not yet been voted on by the full House, meaning it remains in the early legislative stage.
CRS Official Summary
Federal Infrastructure Bank Act of 2025This 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 revenue-producing 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.Entities eligible for loans, equity investments, and loan guarantees include corporations, joint ventures, states, and governmental entities. The bank is prohibited from providing funding for infrastructure projects that are owned, directed, controlled, financed, or influenced by the Chinese government or the Chinese Communist Party.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 FIBHC may issue equity securities, make dividend payments on the securities, and issue bonds. The bill provides for a tax credit in an amount equal to 10% of the amount a taxpayer paid to the FIBHC for an equity investment issued within three years of the formation of the FIBHC.
Latest Action
Referred to the Subcommittee on Highways and Transit.