(1) Citizens chronically complain about the 
state of America’s public capital—about dilapidated 
school buildings, condemned highway bridges, con-
taminated water supplies, and other shortcomings of 
the public infrastructure. 
(2) In addition to inflicting inconvenience and 
endangering health, the inadequacy of the public in-
frastructure adversely affects productivity and the 
growth of the economy since public investment, pri-
vate investment, and productivity are intimately 
linked. 
(3) For more than 2 decades, the United States 
Government has retreated from public investment. 
(4) State and local governments, albeit to a 
lesser extent, have also slowed public investments 
and State and local taxpayers are frequently reluc-
tant to approve bond issues to finance public infra-
structure. 
(5) In the early 1970s, nondefense public in-
vestment accounted for about 3.2 percent of gross 
domestic product but it now accounts for only 2.5 
percent. 
(6) Widespread neglect of maintenance has con-
tributed substantially to the failure of the stock of 
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public capital assets to keep pace with the Nation’s 
needs. 
(7) Net of depreciation, the real nondefense 
public capital stock expanded in the past 2 decades 
at a pace only half that set earlier in the post-World 
War II period. 
(8) Evidence of failures to maintain and im-
prove infrastructure is seen every day in such prob-
lems as unsafe bridges, urban decay, dilapidated and 
over-crowded schools, and inadequate airports. 
(9) The State departments of education col-
lected data that reveals at least $300,000,000,000 
worth of unmet school infrastructure needs. 
(10) This Act— 
(A) is designed to help the Nation take a 
significant step forward both in overcoming its 
infrastructure deficit and in promoting the pro-
ductivity needed to meet the competitive chal-
lenges of the 21st century; and 
(B) represents fiscally sound planning and, 
in salient ways, advances sound fiscal and mon-
etary operations. 
(b) PURPOSES.—The purposes of this Act are as fol-
lows: 
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(1) To provide up to $50,000,000,000 a year 
on average for mortgage loans, at zero percent inter-
est, to State and local governments for capital in-
vestment in types of infrastructure projects specified 
by Congress in a way that would not affect the con-
duct of a sound monetary policy based on price sta-
bility. 
(2) To cut the overall cost of investment in in-
frastructure projects about in half, depending on 
prevailing interest rates, for State and local tax-
payers. 
SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions 
apply: 
(1) BANK.—The term ‘‘Bank’’ means the Fed-
eral Bank for Infrastructure Modernization estab-
lished under section 4. 
(2) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System. 
(3) DEVELOPMENT.—The terms ‘‘development’’ 
and ‘‘develop’’ mean, with respect to an infrastruc-
ture facility, any— 
(A) preconstruction planning, feasibility re-
view, permitting and design work, and other 
preconstruction activities; and 
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(B) construction, reconstruction, rehabili-
tation, replacement, or expansion. 
(4) INDIAN RESERVATION.—The term ‘‘Indian 
reservation’’ has the same meaning as in section 4 
of the Indian Child Welfare Act of 1978 (16 U.S.C. 
1903), and shall include land held by incorporated 
Native groups, regional corporations, and village cor-
porations, as defined in or established pursuant to 
the Alaska Native Claims Settlement Act, public do-
main Indian allotments, and former Indian reserva-
tions in the State of Oklahoma. 
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
means any Indian tribe, band, pueblo, nation, or 
other organized group or community, including any 
Alaska Native village or regional or village corpora-
tion, as defined in or established pursuant to the 
Alaska Native Claims Settlement Act (43 U.S.C. 
1601 et seq.), which is recognized as eligible for the 
special programs and services provided by the 
United States to Indians because of their status as 
Indians. 
(6) INFRASTRUCTURE
FACILITY.—The term 
‘‘infrastructure facility’’ means a road, highway, 
bridge, tunnel, airport, mass transportation vehicle 
or system, passenger or freight rail vehicle or sys-
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tem, intermodal transportation facility, waterway, 
commercial port, drinking or waste water treatment 
facility, solid waste disposal facility, pollution control 
system, hazardous waste facility, federally des-
ignated national information highway facility, public 
school, and any ancillary facility which forms a part 
of any such facility or is reasonably related to such 
facility, including a facility necessary to comply with 
the Americans with Disabilities Act of 1990. 
(7) REGIONAL
OR
MULTISTATE
ORGANIZA-
TION.—The term ‘‘regional or multistate organiza-
tion’’ means an organization established by an inter-
state compact between 2 or more States which has 
been approved by the Congress. 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(9) STATE.—The term ‘‘State’’ includes the 
District of Columbia, Puerto Rico, Guam, American 
Samoa, the Trust Territories of the Pacific Islands, 
the Virgin Islands, the Northern Mariana Islands, 
and any territory of the United States. 
SEC. 4. FEDERAL BANK FOR INFRASTRUCTURE MOD-
ERNIZATION. 
(a) ESTABLISHMENT.— 
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