I 

118TH CONGRESS 

1ST SESSION H. R. 490 

To establish the Federal Infrastructure Bank to facilitate investment in, 

and the long-term financing of, economically viable United States infrastructure projects that provide a public benefit, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2023 

Mr. WEBSTER of Florida introduced the following 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, economically viable United States infrastructure projects that 

provide a public benefit, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Infrastructure 

5 Bank Act of 2023’’. 


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1 SEC. 2. DEFINITIONS. 

2 For the purposes of this Act: 

3 (1) BANK.—The term ‘‘Bank’’ means the Fed4 eral Infrastructure Bank established under section 

5 4. 

6 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti7 ty’’ means— 

8 (A) a corporation, limited liability com9 pany, or any other legally established corporate 

10 form; 

11 (B) a partnership, including a public-pri12 vate partnership; 

13 (C) a joint venture; 

14 (D) a trust; 

15 (E) a State; 

16 (F) any other governmental entity, includ17 ing a political subdivision or any other instru18 mentality of a State; 

19 (G) a revolving fund; or 

20 (H) a State infrastructure bank. 

21 (3) HOLDING COMPANY.—The term ‘‘Holding 

22 Company’’ means the ‘‘Federal Infrastructure Bank 

23 Holding Company’’ established under section 3. 

24 (4) INFRASTRUCTURE PROJECT.—The term 

25 ‘‘infrastructure project’’ means the construction, 

26 consolidation, alteration, operations, maintenance, or 


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1 repair of projects, which provide public benefit or 

2 use, in the following categories: 

3 (A) Highway and roadway facilities, in4 cluding bridges and tunnels. 

5 (B) Port or marine terminal facilities, in6 cluding approaches to marine terminal facilities 

7 or inland port facilities, and port or marine 

8 equipment including fixed equipment to serve 

9 approaches to marine terminals or inland ports. 

10 (C) Airports, heliports, vertiports, space11 ports, or air traffic control systems and facili12 ties. 

13 (D) Transmission or distribution pipelines. 

14 (E) Facilities or equipment for energy 

15 transmission, distribution, or storage. 

16 (F) Intercity passenger or freight rail 

17 lines, facilities, or equipment. 

18 (G) Intercity passenger bus facilities or 

19 equipment. 

20 (H) Public transportation facilities or 

21 equipment. 

22 (I) Inland waterways. 

23 (J) Intermodal facilities or equipment. 


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1 (K) Water treatment and solid waste dis2 posal facilities and associated infrastructure 

3 such as pipes. 

4 (L) Storm water management systems. 

5 (M) Dams and levees. 

6 (N) Any other infrastructure project which 

7 the Bank identifies as providing a public benefit 

8 with regards to infrastructure. 

9 (5) RISK-BASED CAPITAL.—The term ‘‘risk10 based capital’’ shall have the meaning given that 

11 term by the Board of Governors of the Federal Re12 serve System. 

13 (6) RURAL.—The term ‘‘rural’’ means any area 

14 not in a metropolitan statistical area with a popu15 lation of 50,000 or greater. 

16 (7) STATE.—The term ‘‘State’’ means each of 

17 the 50 several States of the United States, the Dis18 trict of Columbia, the Commonwealth of Puerto 

19 Rico, American Samoa, Guam, the United States 

20 Virgin Islands, the Commonwealth of the Northern 

21 Mariana Islands, and each federally recognized In22 dian Tribe. 

23 (8) STATE INFRASTRUCTURE BANK.—The term 

24 ‘‘State infrastructure bank’’ means a State infraVerDate Sep 11 2014 05:38 Feb 04, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H490.IH H490

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1 structure bank or multi-State infrastructure bank 

2 established pursuant to— 

3 (A) section 350 of the National Highway 

4 System Designation Act of 1995; 

5 (B) section 1511(l) of the Transportation 

6 Equity Act for the 21st Century; 

7 (C) section 610 of title 23, United States 

8 Code; or 

9 (D) any State law as an agency, compo10 nent unit, or other governmental entity of the 

11 State. 

12 SEC. 3. SELECTION OF THE FORMATION AGENT. 

13 (a) IN GENERAL.—Within 60 days of the date of en14 actment of this Act, the Secretary of the Treasury, in con15 sultation with the Chairman of the Board of Governors 

16 of the Federal Reserve System, shall select a Formation 

17 Agent which shall— 

18 (1) make and file with the Secretary of the 

19 Treasury an organization certificate for the Bank in 

20 accordance with such rules and regulations as the 

21 Secretary may prescribe, including the establishment 

22 of the Holding Company; and 

23 (2) have significant experience in infrastructure 

24 and infrastructure finance. 


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1 (b) ESTABLISHMENT OF THE FEDERAL INFRA2 STRUCTURE BANK HOLDING COMPANY.—Within 30 days 

3 after being selected under subsection (a), the Formation 

4 Agent shall establish the Federal Infrastructure Bank 

5 Holding Company, prescribe the governing structure of 

6 the Holding Company, and establish the Federal Infra7 structure Bank Holding Company Board of Directors, 

8 which shall— 

9 (1) initially consist of 7 members; 

10 (2) be elected by the shareholders of the Hold11 ing Company; 

12 (3) serve 4-year terms, only 2 of which may be 

13 consecutive; 

14 (4) within the limitations of law and regulation, 

15 determine and sign the articles of association that 

16 govern the operations of the Holding Company, and 

17 have the power to adopt, amend, and repeal bylaws 

18 governing the performance of the powers and duties 

19 granted to or imposed upon the Holding Company 

20 by law; and 

21 (5) select and effect the appointment of quali22 fied persons to fill the office of the Chief Executive 

23 Officer of the Bank and such other offices as may 

24 be provided for in the bylaws of the Holding Com25 pany and the Federal Infrastructure Bank. 


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1 (c) EARNINGS AND RESERVES NOT GOVERNMENT

2 FUNDS.—The earnings and reserves of the Holding Com3 pany shall be the sole property of the Holding Company 

4 and are not Government funds or public funds. 

5 (d) TREATMENT OF SHAREHOLDERS OF THE FORMA6 TION AGENT.—The Formation Agent shall issue equity se7 curities of the Holding Company to each shareholder of 

8 the Formation Agent, in an amount that the Formation 

9 Agent determines has a value equal to the value of equity 

10 securities of the Formation Agent held by such share11 holder upon the establishment of the Holding Company. 

12 SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUC13 TURE BANK. 

14 (a) IN GENERAL.—The Formation Agent shall estab15 lish the Federal Infrastructure Bank as a Delaware cor16 poration and the Bank shall be a wholly owned subsidiary 

17 of the Holding Company. 

18 (b) FEDERAL BANKING CHARTER.—The Comptroller 

19 of the Currency shall grant a national bank charter to the 

20 Bank. 

21 (c) REGIONAL OFFICES.—Within 5 years of the date 

22 of enactment of this Act, the Bank shall establish regional 

23 offices for the purpose of focusing on infrastructure 

24 projects in different areas of the United States. 


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1 (d) BOARD OF DIRECTORS.—The Board of Directors 

2 of the Holding Company established under section 3 shall 

3 be the initial Board of Directors of the Bank. 

4 (e) EARNINGS AND RESERVES NOT GOVERNMENT

5 FUNDS.—The earnings and reserves of the Bank are not 

6 Government funds or public funds. 

7 SEC. 5. FUNCTIONS OF THE BANK. 

8 (a) IN GENERAL.—The Bank shall provide equity in9 vestments, direct loans, indirect loans, and loan guaran10 tees to eligible entities for the planning, pre-development, 

11 design, construction, operations or maintenance of rev12 enue-producing infrastructure projects in the United 

13 States with sufficient revenue sources and guarantees to 

14 support the interest and principal payments to the Bank. 

15 (b) SUPPORT FOR RURAL PROJECTS.—Not less than 

16 10 percent of the dollar amount of loans, equity invest17 ments, and loan guarantees provided by the Bank shall 

18 be with respect to infrastructure projects in rural areas. 

19 (c) LEVERAGING BANK INVESTMENTS.—The Bank 

20 shall attempt to cross subsidize non-revenue infrastructure 

21 projects with revenue generating infrastructure projects to 

22 diversify the loan portfolio. 

23 (d) NO COMMERCIAL OR INVESTMENT BANKING AC24 TIVITIES.—Notwithstanding any other provision of law, 

25 the Bank is prohibited from— 


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1 (1) accepting customer deposits; or 

2 (2) engaging in financial or investment banking 

3 activities, except with respect to the Bank’s own rev4 enues. 

5 (e) PLEDGE AND CREDIT FACILITIES.— 

6 (1) PLEDGE.—The Bank shall have the author7 ity to pledge its loans to the discount window of the 

8 Board of Governors of the Federal Reserve System. 

9 (2) PURCHASE OF OBLIGATIONS.—The Sec10 retary of the Treasury may purchase obligations 

11 issued by the Bank in the same manner and under 

12 the same requirements that the Secretary purchases 

13 obligations under section 306(c) of the Federal 

14 Home Loan Mortgage Corporation Act (12 U.S.C. 

15 1455(c)). 

16 (f) LEVERAGE LIMITATION.—The Bank shall main17 tain risk-based capital at no less than 10 percent, collec18 tively for the Bank and the Holding Company. 

19 (g) LIFECYCLE.—The Bank shall ensure that infra20 structure projects account for long-term operations, main21 tenance, and life-cycle costs and obligations to ensure that 

22 the infrastructure projects maximize the useful life of each 

23 applicable asset. 

24 (h) INFRASTRUCTURE DELIVERY.—The Bank, as a 

25 clearinghouse for infrastructure finance, may provide imVerDate Sep 11 2014 05:38 Feb 04, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H490.IH H490

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1 plementation advisory assistance, directly or indirectly, to 

2 infrastructure projects. 

3 (i) CREDIT RATING.—The Bank shall accept credit 

4 ratings consistent with typical infrastructure market prac5 tice to enhance deployment of capital. 

6 (j) PROHIBITION ON FUNDING OF FOREIGN

7 PROJECTS.—The Bank is prohibited from providing eq8 uity investments, direct loans, indirect loans, and loan 

9 guarantees for infrastructure projects not located within 

10 the United States. 

11 (k) PROHIBITION WITH RESPECT TO CHINA.—The 

12 Bank is prohibited from providing equity investments, di13 rect loans, indirect loans, and loan guarantees for infra14 structure projects that are owned, directed, controlled, fi15 nanced, or influenced by the Government of the People’s 

16 Republic of China, the Chinese Communist Party, or the 

17 People’s Liberation Army. 

18 SEC. 6. HOLDING COMPANY SECURITIES. 

19 (a) EQUITY SECURITIES.— 

20 (1) IN GENERAL.—The Holding Company shall 

21 issue such equity securities as the Board of Direc22 tors of the Holding Company determines appro23 priate. 

24 (2) DIVIDENDS.—The Holding Company may 

25 make such dividend payments on the equity securiVerDate Sep 11 2014 05:38 Feb 04, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H490.IH H490

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1 ties of the Holding Company as the Holding Com2 pany determines appropriate. 

3 (3) RESTRICTION ON VOTING RIGHTS.—Any 

4 holder of an equity security of the Holding Company 

5 that is a non-United States individual or entity shall 

6 have no voting rights with respect to such equity se7 curity. 

8 (b) BONDS.— 

9 (1) STANDARD BONDS.—The Holding Company 

10 may issue standard bonds with maturities up to 30 

11 years or longer, as needed. 

12 (2) OTHER BONDS.—The Holding Company 

13 may issue other bonds, notes, and marketable securi14 ties with maturities and interest rates as the Hold15 ing Company determines appropriate. 

16 (3) AUTHORITY TO PURCHASE BONDS.— 

17 (A) IN GENERAL.—The Secretary of the 

18 Treasury and the Board of Governors of the 

19 Federal Reserve System may purchase bonds 

20 issued under this section. 

21 (B) LIMITATION.—The aggregate amount 

22 of outstanding bonds purchased by the Sec23 retary under this paragraph may not exceed 5 

24 percent of the total amount of the outstanding 

25 bonds of the Holding Company. 


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1 (c) LEVERAGE LIMITATION.—The Holding Company 

2 shall maintain risk-based capital at no less than 10 per3 cent, collectively for the Bank and the Holding Company. 

4 (d) INVESTMENT LIMITATION ON NON-UNITED

5 STATES INDIVIDUALS AND ENTITIES.— 

6 (1) Non-United States individuals and entities 

7 may not hold more than 25 percent, in the aggre8 gate, of the equity securities and bonds of the Hold9 ing Company. 

10 (2) The Formation Agent and Holding Com11 pany are prohibited from issuing any bond, note, 

12 marketable security, or other financial instrument to 

13 any person or entity— 

14 (A) affiliated with, owned by, or directed, 

15 controlled, financed, or influenced by the Gov16 ernment of the People’s Republic of China, the 

17 Chinese Communist Party, or the People’s Lib18 eration Army; or 

19 (B) affiliated with, owned by, or directed, 

20 controlled, financed, or influenced by a State 

21 Sponsor of Terrorism, as so designated by the 

22 Secretary of State. 

23 SEC. 7. OVERSIGHT AND REGULATION. 

24 The Board of Governors of the Federal Reserve Sys25 tem shall— 


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1 (1) have oversight and supervisory authority 

2 over the Holding Company and the Bank, in order 

3 to ensure the safe and sound operation of the Hold4 ing Company and the Bank; and 

5 (2) shall regulate Bank activities to ensure 

6 compliance with the requirements set forth in this 

7 Act. 

8 SEC. 8. INFRASTRUCTURE GUARANTEE FUND. 

9 The Bank shall establish an Infrastructure Guar10 antee Fund that shall be used with respect to specific 

11 loans or loan guarantees made by the Bank in the event 

12 of any non-payment by the recipient of such loan or loan 

13 guarantee. 

14 SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM 

15 TAXATION. 

16 Effective for taxable years ending on or after the date 

17 of enactment of this Act, the Holding Company and the 

18 Bank, including franchises, capital, reserves, surplus, ad19 vances, and income of the Holding Company or Bank, 

20 shall be exempt from all taxation imposed by the United 

21 States and any State, county, municipal, or local taxing 

22 authority, except that any real property of the Holding 

23 Company and the Bank shall be subject to State, county, 

24 municipal, or local taxation to the same extent according 

25 to its value as other real property is taxed. 


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1 SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COM2 PANY CREDIT. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended— 

6 (1) by adding at the end the following new sec7 tion: 

8 ‘‘SEC. 45AA. FEDERAL INFRASTRUCTURE BANK HOLDING 

9 COMPANY CREDIT. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

11 the case of a taxpayer who holds a qualified Holding Com12 pany equity investment on a credit allowance date of such 

13 investment which occurs during the taxable year, the Fed14 eral Infrastructure Bank Holding Company credit deter15 mined under this section for such taxable year is an 

16 amount equal to 10 percent of the amount paid to the 

17 Holding Company for such investment at its original issue. 

18 ‘‘(b) CREDIT ALLOWANCE DATE.—For purposes of 

19 this section, the credit allowance date with respect to any 

20 qualified Holding Company equity investment is— 

21 ‘‘(1) the date on which such investment is ini22 tially made; and 

23 ‘‘(2) each of the 4 taxable years thereafter. 

24 ‘‘(c) QUALIFIED HOLDING COMPANY EQUITY IN25 VESTMENT.—For purposes of this section, the term ‘quali26 fied Holding Company equity investment’ means any eqVerDate Sep 11 2014 05:38 Feb 04, 2023 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H490.IH H490

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1 uity investment originally issued by the Holding Company 

2 to the taxpayer under section 6(a)(1) of the Federal Infra3 structure Bank Act of 2023 not later than 3 years after 

4 the formation of the Federal Infrastructure Bank Holding 

5 Company pursuant to section 3 of the Federal Infrastruc6 ture Bank Act of 2023. 

7 ‘‘(d) HOLDING COMPANY.—For purposes of this sec8 tion, the term ‘Holding Company’ means the Federal In9 frastructure Bank Holding Company established by the 

10 Federal Infrastructure Bank Act of 2023.’’; and 

11 (2) in the table of contents for such subpart, by 

12 adding at the end the following: 

‘‘45AA. Federal Infrastructure Bank Holding Company credit.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 38(b) of such Code is amended by 

15 striking ‘‘plus’’ at the end of paragraph (37), by 

16 striking the period at the end of paragraph (38) and 

17 inserting ‘‘, plus’’, and by adding at the end the fol18 lowing new paragraph: 

19 ‘‘(39) the Federal Infrastructure Bank Holding 

20 Company credit determined under section 45AA.’’. 

21 (2) Section 1016(a) of such Code is amended 

22 by striking ‘‘and’’ at the end of paragraph (37), by 

23 striking the period at the end of paragraph (38) and 

24 inserting ‘‘, and’’, and by adding at the end the fol25 lowing new paragraph: 


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1 ‘‘(39) to the extent provided in section 

2 45AA(e).’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years ending after the 

5 date of the enactment of this Act. 

6 SEC. 11. RULE OF CONSTRUCTION. 

7 Nothing in this Act may be construed as authorizing 

8 the Federal Government to guarantee the assets of the 

9 Bank or Holding Company. 

Æ 


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