pensation, require bonds of them and fix the penalty 
thereof, and to dismiss at pleasure such officers or 
employees. 
(5) To make advance, progress, or other pay-
ments. 
(6) To acquire, hold, lease, mortgage, maintain, 
or dispose of, at public or private sale, real and per-
sonal property, using any legally available private 
sector methods, and otherwise exercise all the usual 
incidents of ownership of property necessary and 
convenient to the operations of the Bank. 
(7) To sue and be sued in its corporate capacity 
in any court of competent jurisdiction. 
(8) To use the United States mails in the same 
manner and under the same conditions as other de-
partments and agencies of the United States. 
(9) To prescribe bylaws that shall be consistent 
with law. 
(10) To make loans in accordance with section 
7, subject to the requirements of such section. 
SEC. 5. CAPITALIZATION OF THE BANK. 
(a) ISSUANCE
AND SALE
OF STOCK.—The Bank 
may— 
(1) issue nonvoting capital stock under section 
4(c)(2) only at such times and in such amounts as— 
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(A) the Secretary determines to be appro-
priate for the issuance of such stock; and 
(B) the Board determines to be appro-
priate for the purchase of such stock; and 
(2) sell such stock only to the Board or, at the 
Board’s direction, a Federal reserve bank. 
(b) PURCHASE OF CAPITAL STOCK BY FEDERAL RE-
SERVE BOARD.— 
(1) IN GENERAL.—During the 10-year period 
beginning on the first day of the first fiscal year 
that begins after the date of the enactment of this 
Act, and subject to subsection (c) and the direction 
of the Federal Open Market Committee, the Board 
of Governors of the Federal Reserve System, acting 
directly or through any Federal reserve bank, shall 
invest in nonvoting capital stock of the Bank at such 
times and in such amounts as the Board determines 
to be appropriate under this section. 
(2) AVERAGE ANNUAL INVESTMENT AMOUNT.— 
The amount invested by the Board in the capital 
stock of the Bank under this subsection shall aver-
age $50,000,000,000 a year over the 10-year period 
of investment in the Bank described in paragraph 
(1). 
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(c) INTEGRATION
OF
STOCK
PURCHASES
INTO 
OPEN-MARKET OPERATIONS.— 
(1) IN GENERAL.—The investment of the Board 
in stock of the Bank under this section shall be inte-
grated into the open-market operations of the Fed-
eral Open Market Committee under section 12A of 
the Federal Reserve Act (12 U.S.C. 263) and the di-
rections of the Federal Open Market Committee to 
the Federal reserve banks with regard to open-mar-
ket operations shall take into account, and may in-
clude directions with regard to, any such investment. 
(2) TREATMENT OF STOCK.—Capital stock of 
the Bank shall be treated as obligations of an agen-
cy of the United States for purposes of section 
14(b)(2) of the Federal Reserve Act (12 U.S.C. 
355). 
(d) USE OF CAPITAL.—The capital of the Bank may 
be used only for making loans under section 7. 
(e) RETIREMENT
OF
STOCK.—Nonvoting stock 
issued under this section shall be repurchased and retired 
from amount received from the repayment of loans under 
section 7. 
SEC. 6. BUDGET TREATMENT. 
(a) NONAPPLICABILITY OF PROVISIONS APPLICABLE 
TO RECEIPT AND EXPENDITURES OF REVENUE AND BOR-
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ROWED FUNDS.—For purposes of title 31, United States 
Code, the Congressional Budget and Impoundment Con-
trol Act of 1974, the Balanced Budget and Emergency 
Deficit Control Act of 1985, the Budget Enforcement Act 
of 1990, or any other provision of law— 
(1) amounts received by the Bank in connection 
with the sale of stock pursuant to section 5 shall not 
be treated as revenue when it is received or made 
available to the Bank nor shall it be treated as rev-
enue by the Bank or by the Secretary of the Treas-
ury when the loans referred to in section 7 are re-
paid; 
(2) the purchase or sale of stock pursuant to 
section 5 and the interest-free loan program estab-
lished under section 7— 
(A) shall not be treated as budget author-
ity, new budget authority, budgetary resources, 
spending authority, new spending authority, en-
titlement authority, or credit authority; 
(B) shall not be subject to apportionment 
or sequestration other than in accordance with 
the provisions of sections 4, 5, and 7; and 
(C) shall not be taken into account in the 
determination of the baseline for any fiscal 
year; and 
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(3) the disbursement of money paid by the 
Board or received by the Bank in connection with 
the purchase or sale of stock pursuant to section 5 
shall not be treated as an outlay or a budget outlay. 
(b) EXPENDITURE OF TAX REVENUE OR BORROWED 
FUNDS NOT AUTHORIZED.—No provision of this Act shall 
be construed as authorizing the expenditure of funds de-
rived from revenues imposed and collected by the United 
States Government under any provision of law or from 
amounts borrowed by the United States Government pur-
suant to chapter 31 of title 31, United States Code, or 
any other provision of law. 
SEC. 7. ISSUANCE OF INFRASTRUCTURE LOANS. 
(a) IN GENERAL.—The Bank may make loans to eli-
gible borrowers for the development of infrastructure fa-
cilities, if the Bank obtains such assurances as the Bank 
determines to be appropriate from the borrower that— 
(1) the funding of the project by the Bank was 
approved by— 
(A) a State certifying officer, in the case of 
an infrastructure facility development project 
proposed by a governmental unit within such 
State; 
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(B) the Secretary of the Interior, in the 
case of a project proposed by an Indian tribe; 
or 
(C) the State certifying officer of each 
State involved, in the case of an infrastructure 
facility development project proposed by a re-
gional or multistate organization; 
(2) the proceeds of such loan will be used solely 
for the purpose of funding the development of any 
infrastructure facility; 
(3) the borrower will establish and maintain 
over the life of the loan a sinking fund or other am-
ortizing mechanism that would ensure that the re-
payment of the principal of the loan will be made in 
accordance with the repayment schedule contained in 
the loan documents; and 
(4) the Bank will have full access to such books 
and records of the borrower as the Bank may, from 
time to time, determine to be necessary to audit the 
borrower’s compliance with the terms and conditions 
of the loan. 
(b) NO INTEREST.—Any loan made under this Act 
shall bear no interest. 
(c) LOAN REQUIREMENTS.— 
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(1) AGGREGATE ANNUAL LOAN AMOUNTS.—The 
aggregate amount of loan commitments made by the 
Bank in any year shall equal the amount of the in-
vestment by the Board in the capital stock of the 
Bank in such year. 
(2) INVESTMENT
IN
PUBLIC
SCHOOL
INFRA-
STRUCTURE.—The Secretary shall set up lending 
guidelines for loans under this section to ensure that 
20 percent of the total amount of all loans made to 
States, units of general local government, or Indian 
reservations are dedicated to investment in public 
school infrastructure and facilities or other public 
educational facilities. 
(d) ALLOCATION FORMULA.— 
(1) IN GENERAL.—The Secretary shall establish 
an allocation formula, on the basis of the total popu-
lation of each State and Indian reservation, to deter-
mine the manner in which the total amount of loan 
disbursements which may be made in any year shall 
be allocated among the States and Indian tribes. 
(2) REGIONAL
OR
MULTISTATE
ORGANIZA-
TION.—In developing an allocation formula, the Sec-
retary shall provide for the allocation of loans to re-
gional or multistate organizations through appro-
priate adjustments of allocated amounts to the 
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States which established any such regional or 
multistate organization. 
SEC. 8. BORROWER ELIGIBILITY. 
(a) IN GENERAL.—Subject to subsections (b) and (c), 
any State, any unit of general local government of a State, 
any Indian tribe, and any regional or multistate organiza-
tion shall be eligible to borrow from the Bank under this 
Act to fund the development of infrastructure facilities. 
(b) STATE CERTIFYING OFFICER.—No loans may be 
made to any State or any unit of general local government 
of any State, or to any regional or multistate organization 
to which such State is a party, unless the State has au-
thorized an officer of the State to— 
(1) review all proposals by any officer or agency 
of the State or any unit of general local government 
to develop an infrastructure facility for which fund-
ing is sought from the Bank; 
(2) select and approve the proposals which meet 
the requirements of this Act for funding by the 
Bank consistent with the allocation formula estab-
lished by the Secretary of the Treasury, including 
requirements of the Bank with regard to— 
(A) the establishment of sinking funds or 
other amortizing mechanisms to ensure timely 
repayment of any loan; and 
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(B) the auditing of the books and records 
of the recipient of the loan; and 
(3) ensure that— 
(A) all proposals are financially respon-
sible; and 
(B) proposing parties have not previously 
defaulted on any loan by the Bank under this 
Act. 
(c) SECRETARY OF THE INTERIOR.—No loans may 
be made to any Indian tribe unless the Secretary of the 
Interior undertakes to— 
(1) review all proposals by any Indian tribe to 
develop an infrastructure facility for which funding 
is sought from the Bank; and 
(2) select and approve the proposals which meet 
the requirements of this Act for funding by the 
Bank consistent with the allocation formula estab-
lished by the Secretary of the Treasury, including 
requirements of the Bank with regard to— 
(A) the establishment of sinking funds or 
other amortizing mechanisms to ensure timely 
repayment of any loan; and 
(B) the auditing of the books and records 
of the recipient of a loan. 
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SEC. 9. MADE IN AMERICA. 
(a) FINDINGS.—The Congress finds the following: 
(1) Illegal steel dumping in domestic steel mar-
kets has eroded the market for domestic steel. 
(2) The result of this erosion of the domestic 
steel market has been the recent string of bank-
ruptcies and mill closings of steel companies. 
(3) Thousands of steel workers have lost their 
jobs as a result of the bankruptcies and mill clos-
ings. 
(4) There are precedents for requirements that 
domestic steel and iron products be used in cases 
where Federal monies are involved in infrastructure 
projects. 
(b) BUY AMERICA.— 
(1) IN GENERAL.—No loan may be issued for 
any infrastructure facility development project un-
less the Bank receives assurances from the appro-
priate State certifying officer described in subsection 
(a)(1) or the Secretary of the Interior, as the case 
may be, that the project meets the requirements of 
the Buy America Act. 
(2) REGULATIONS.—The Secretary shall pre-
scribe such regulations as the Secretary determines 
appropriate to carry out this section. 
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(3) IRON AND STEEL PRODUCTS.—If any iron 
or steel product is involved in any infrastructure fa-
cility development project, such product does not 
meet the requirement of this section unless all man-
ufacturing processes involved in the production of 
such product, including the application of any coat-
ing, have taken place within the United States. 
SEC. 10. LABOR STANDARDS. 
(a) IN GENERAL.—All laborers and mechanics em-
ployed by contractors or subcontractors in the perform-
ance of any contract and subcontract for the construction, 
repair, renovation, or alteration, including painting and 
decorating, of any infrastructure facility development 
project that is financed in whole or in part by a loan under 
this Act, shall be paid wages not less than those deter-
mined by the Secretary of labor in accordance with the 
Act of March 3, 1931 (commonly known as the Davis- 
Bacon Act, 40 U.S.C. 276a—276a–5). The Secretary of 
Labor shall have the authority and functions set forth in 
Reorganization Plan of No. 14 of 1950 (64 Stat. 1267) 
and section 2 of the Act of June 1, 1934 (commonly 
known as the Copeland Anti-Kickback Act) (40 U.S.C. 
276c). 
(b) VOLUNTARY PROJECT LABOR AGREEMENTS.— 
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