National Infrastructure Bank Act of 2025

Bill Number

H.R. 5356

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.

Last Updated

2026-06-26T08:07:50Z

AI-Generated Summary

Summary of H.R. 5356: National Infrastructure Bank Act of 2025

Purpose

The legislation aims to create a National Infrastructure Bank to provide efficient, long-term financing for infrastructure projects across the United States. It seeks to address a significant funding gap for infrastructure needs—estimated at nearly $3.7 trillion over 10 years—while promoting economic growth, job creation, productivity improvements, and benefits like reduced inequality and increased tax revenues. The Bank would operate without requiring new federal taxes or budget deficits, drawing on historical precedents like past national banks that supported major public works.

Key Provisions

• Tax Incentives (Title I):
• Treats the Bank as a tax-exempt government corporation.
• Allows contributions to the Bank to be deducted as charitable donations.
• Excludes dividends on the Bank's preferred stock from taxable income for investors.

• Establishment and Structure of the Bank (Title II):
• Creates the Bank as a mixed-ownership government corporation (part public, part private) under the Treasury Secretary's oversight, with a charter provided by this Act.
• Capitalization: Raises up to $500 billion in capital stock (initially phased in: $150 billion in year 1, $300 billion by year 3, $500 billion by year 5), subscribed via exchanges of Treasury securities or municipal bonds, cash, or U.S. Treasury contributions. Maintains a 10% risk-based capital ratio.
• Preferred Stock and Dividends: Converts capital to non-voting preferred stock with semiannual dividends tied to Treasury rates (plus 0.5% for tax-exempt entities). Dividends prioritized over other uses.
• Borrowing and Deposits: Issues bonds (5-10 year maturity, backed by U.S. full faith and credit), maintains a Federal Reserve credit line, and accepts interest-bearing deposits from the public once chartered.
• Loans and Financing: Provides direct loans, guarantees, insurance, and blended financing up to $5 trillion total for eligible projects. Loan terms match project lifespans; interest rates based on Treasury yields or 1.6% (whichever higher), adjusted for risk and disadvantaged areas. No consumer loans or investment banking.
• Net Earnings and Reserves: Uses earnings for loan-loss reserves (proportional to loans), dividends to Treasury, and subsidies for disadvantaged communities via a trust fund. Maintains reserves against deposits (up to 14% for large accounts).
• Branches and Planning: Establishes offices in Federal Reserve cities and online; forms at least 7 regional economic accelerator groups to identify needs, develop plans, and prioritize projects for connectivity, supply chains, and inclusive growth.

• Governance and Oversight:
• Board of Directors: 25 presidentially appointed members (Senate-confirmed) with expertise in engineering, labor, finance, and disadvantaged communities. Serves 6-year terms (staggered initially); oversees strategy, approvals, and compliance. Meetings mostly public.
• Committees: Executive (9 members for operations and recommendations), Risk Management (5 members for risk policies), and Audit (5 members for internal controls). All members have specialized qualifications and conflict-of-interest restrictions.
• Personnel and Inspector General: Appoints executives like CEO and chief officers; nondiscrimination policy. Establishes a Special Inspector General for audits and investigations, reporting to Congress.
• Eligibility Criteria: Projects must have local/regional/national significance and public interest. Evaluated on economic growth, jobs (including training via unions/apprenticeships), environmental benefits (e.g., reduced emissions), innovation, and domestic production. Prioritizes disadvantaged communities, bundling projects for efficiency, and acts as "lender of last resort" for shovel-ready or high-unemployment areas. Excludes privatization of public assets.
• Labor and Compliance Requirements: Mandates prevailing wages (Davis-Bacon Act), project labor agreements in certain states, Buy America rules for materials, nondiscrimination, 10% spending with minority/women/disadvantaged businesses, and local hiring preferences (prioritizing veterans, underrepresented groups). Coordinates with existing federal programs; requires state/local permits.
• Reporting and Audits: Annual reports to Congress/President; public database of projects with 30-day comment periods. GAO review after 5 years. Exempt from some budget scoring and federal claim priority laws.

• Authorizations: $50 million appropriated for FY 2025-2026 startup; budgetary effects per PAYGO rules.

Significant Changes to Existing Law

• Amends the Internal Revenue Code to grant tax exemptions and deductions specific to the Bank, treating it like a charity for contributions.
• Adds the Bank to the list of government corporations under 31 U.S.C. § 9101.
• Exempts Bank loans/contracts from Federal Credit Reform Act budget scoring and federal priority claims (31 U.S.C. § 3713).
• Applies existing laws like Buy America (from Infrastructure Investment and Jobs Act) and labor standards (Davis-Bacon) directly to Bank-funded projects, while streamlining some regulations via regional planning.
• Introduces new mandates for project labor agreements and minority business participation not previously centralized for infrastructure financing.

Potential Impacts

• Government Agencies: Shifts infrastructure financing from traditional grants to loans, reducing federal budget strain (e.g., via $5 trillion in lending without new deficits). Treasury guarantees excess losses; Federal Reserve assesses operations periodically. Enhances coordination among agencies like Transportation, Energy, and EPA through personnel details and planning.
• Citizens: Improves access to modern infrastructure (e.g., roads, water, broadband, housing), potentially creating high-wage jobs, reducing pollution/emissions, and boosting productivity/economic growth (citing historical 3.5% annual productivity gains). Benefits disadvantaged/low-income areas with subsidized loans and hiring priorities, addressing gaps in rural/urban equity.
• International Relations: Strengthens U.S. competitiveness by closing infrastructure gaps (e.g., high-speed rail, energy grids), potentially aiding trade and resilience against global challenges like climate change. No direct foreign policy provisions, but supports domestic production to reduce reliance on imports.

Main Stakeholders Affected

• Public Sector: States, local governments, tribes, utilities, and special districts as primary borrowers for projects.
• Private Sector: Businesses, nonprofits, and public-private partnerships eligible for financing; local banks/credit unions as partners in lending.
• Workers and Communities: Labor unions (e.g., AFL-CIO, Building Trades), disadvantaged/low-income areas, minorities/women-owned businesses, and veterans benefiting from jobs, training, and inclusive hiring.
• Investors and Taxpayers: Holders of Treasury/municipal bonds exchanging for Bank stock; general public via deposits and economic returns (e.g., higher tax revenues).
• Oversight Entities: Congress, Treasury, Federal Reserve, GAO, and Special Inspector General for monitoring and audits.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes robust oversight (e.g., IG, public reporting) to prevent misuse, with full faith/credit backing for bonds raising accountability questions. Compliance with civil rights/labor laws reinforces federal standards but may increase project costs/delays. Exemption from certain fiscal laws could accelerate funding but risks off-balance-sheet liabilities.
• Constitutional: As a government corporation, it invokes Congress's spending power (Article I) for public welfare; mixed ownership avoids direct appropriations, potentially sidestepping some debt ceiling issues. Senate confirmation for board/IG aligns with advice-and-consent clause.
• Political: Builds on bipartisan historical models (e.g., Reconstruction Finance Corporation), emphasizing nonpartisan infrastructure needs per ASCE reports. Phased capitalization with Federal Reserve reviews allows congressional adjustments; public input and transparency provisions mitigate cronyism concerns, though scale ($5T loans) could spark debates on federal overreach or fiscal sustainability.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Davis, Danny K. [D-IL-7]

Cosponsors (63)

Rep. Smith, Adam [D-WA-9], Rep. Espaillat, Adriano [D-NY-13], Rep. Lynch, Stephen F. [D-MA-8], Rep. Tonko, Paul [D-NY-20], Rep. Pingree, Chellie [D-ME-1], Rep. Magaziner, Seth [D-RI-2], Rep. Cleaver, Emanuel [D-MO-5], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Garamendi, John [D-CA-8], Rep. Mullin, Kevin [D-CA-15], Rep. Velázquez, Nydia M. [D-NY-7], Rep. Frost, Maxwell [D-FL-10], Rep. Landsman, Greg [D-OH-1], Rep. Suozzi, Thomas R. [D-NY-3], Rep. McGovern, James P. [D-MA-2], Rep. Ramirez, Delia C. [D-IL-3], Rep. Amo, Gabe [D-RI-1], Rep. Tlaib, Rashida [D-MI-12], Rep. Khanna, Ro [D-CA-17], Rep. Thanedar, Shri [D-MI-13], Rep. Kaptur, Marcy [D-OH-9], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Torres, Ritchie [D-NY-15], Rep. Goldman, Daniel S. [D-NY-10], Rep. Nadler, Jerrold [D-NY-12], Rep. Latimer, George [D-NY-16], Rep. Ryan, Patrick [D-NY-18], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Evans, Dwight [D-PA-3], Rep. Carson, André [D-IN-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Boyle, Brendan F. [D-PA-2], Rep. Lee, Summer L. [D-PA-12], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Jayapal, Pramila [D-WA-7], Rep. Lofgren, Zoe [D-CA-18], Rep. Ross, Deborah K. [D-NC-2], Rep. Dingell, Debbie [D-MI-6], Rep. Panetta, Jimmy [D-CA-19], Rep. Foushee, Valerie P. [D-NC-4], Rep. Leger Fernandez, Teresa [D-NM-3], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Jacobs, Sara [D-CA-51], Rep. Vasquez, Gabe [D-NM-2], Rep. Friedman, Laura [D-CA-30], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Mannion, John W. [D-NY-22], Rep. Ocasio-Cortez, Alexandria [D-NY-14] and 13 more

Recent Actions

• 2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.
• 2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.
• 2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.
• 2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.
• 2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.
• 2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.
• 2025-09-15: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Workforce, Natural Resources, and the Budget, 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.
• 2025-09-15: Introduced in House
• 2025-09-15: Introduced in House

Bill Versions

• National Infrastructure Bank Act of 2025 — issued 2025-09-15 — PDF (83 pages)