I 
119TH CONGRESS 
1ST SESSION H. R. 1235 
To establish the Federal Infrastructure Bank to facilitate investment in, 
and the long-term financing of, economically viable United States infra-
structure projects that provide a public benefit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 12, 2025 
Mr. WEBSTER of Florida (for himself and Mr. CARBAJAL) introduced the fol-
lowing 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, economi-
cally viable United States infrastructure projects that 
provide a public benefit, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Infrastructure 
Bank Act of 2025’’. 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 2. DEFINITIONS. 
For the purposes of this Act: 
(1) BANK.—The term ‘‘Bank’’ means the Fed-
eral Infrastructure Bank established under section 
4. 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a corporation, limited liability com-
pany, or any other legally established corporate 
form; 
(B) a partnership, including a public-pri-
vate partnership; 
(C) a joint venture; 
(D) a trust; 
(E) a State; 
(F) any other governmental entity, includ-
ing a political subdivision or any other instru-
mentality of a State; 
(G) a revolving fund; or 
(H) a State infrastructure bank. 
(3) HOLDING COMPANY.—The term ‘‘Holding 
Company’’ means the ‘‘Federal Infrastructure Bank 
Holding Company’’ established under section 3. 
(4) INFRASTRUCTURE
PROJECT.—The term 
‘‘infrastructure project’’ means the construction, 
consolidation, alteration, operations, maintenance, or 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
structure bank or multi-State infrastructure bank 
established pursuant to— 
(A) section 350 of the National Highway 
System Designation Act of 1995; 
(B) section 1511(l) of the Transportation 
Equity Act for the 21st Century; 
(C) section 610 of title 23, United States 
Code; or 
(D) any State law as an agency, compo-
nent unit, or other governmental entity of the 
State. 
SEC. 3. SELECTION OF THE FORMATION AGENT. 
(a) IN GENERAL.—Within 60 days of the date of en-
actment of this Act, the Secretary of the Treasury, in con-
sultation with the Chairman of the Board of Governors 
of the Federal Reserve System, shall select a Formation 
Agent which shall— 
(1) make and file with the Secretary of the 
Treasury an organization certificate for the Bank in 
accordance with such rules and regulations as the 
Secretary may prescribe, including the establishment 
of the Holding Company; and 
(2) have significant experience in infrastructure 
and infrastructure finance. 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(b) ESTABLISHMENT
OF
THE
FEDERAL
INFRA-
STRUCTURE BANK HOLDING COMPANY.—Within 30 days 
after being selected under subsection (a), the Formation 
Agent shall establish the Federal Infrastructure Bank 
Holding Company, prescribe the governing structure of 
the Holding Company, and establish the Federal Infra-
structure Bank Holding Company Board of Directors, 
which shall— 
(1) initially consist of 7 members; 
(2) be elected by the shareholders of the Hold-
ing Company; 
(3) serve 4-year terms, only 2 of which may be 
consecutive; 
(4) within the limitations of law and regulation, 
determine and sign the articles of association that 
govern the operations of the Holding Company, and 
have the power to adopt, amend, and repeal bylaws 
governing the performance of the powers and duties 
granted to or imposed upon the Holding Company 
by law; and 
(5) select and effect the appointment of quali-
fied persons to fill the office of the Chief Executive 
Officer of the Bank and such other offices as may 
be provided for in the bylaws of the Holding Com-
pany and the Federal Infrastructure Bank. 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(c) EARNINGS AND RESERVES NOT GOVERNMENT 
FUNDS.—The earnings and reserves of the Holding Com-
pany shall be the sole property of the Holding Company 
and are not Government funds or public funds. 
(d) TREATMENT OF SHAREHOLDERS OF THE FORMA-
TION AGENT.—The Formation Agent shall issue equity se-
curities of the Holding Company to each shareholder of 
the Formation Agent, in an amount that the Formation 
Agent determines has a value equal to the value of equity 
securities of the Formation Agent held by such share-
holder upon the establishment of the Holding Company. 
SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUC-
TURE BANK. 
(a) IN GENERAL.—The Formation Agent shall estab-
lish the Federal Infrastructure Bank as a Delaware cor-
poration and the Bank shall be a wholly owned subsidiary 
of the Holding Company. 
(b) FEDERAL BANKING CHARTER.—The Comptroller 
of the Currency shall grant a national bank charter to the 
Bank. 
(c) REGIONAL OFFICES.—Within 5 years of the date 
of enactment of this Act, the Bank shall establish regional 
offices for the purpose of focusing on infrastructure 
projects in different areas of the United States. 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(d) BOARD OF DIRECTORS.—The Board of Directors 
of the Holding Company established under section 3 shall 
be the initial Board of Directors of the Bank. 
(e) EARNINGS AND RESERVES NOT GOVERNMENT 
FUNDS.—The earnings and reserves of the Bank are not 
Government funds or public funds. 
SEC. 5. FUNCTIONS OF THE BANK. 
(a) IN GENERAL.—The Bank shall provide equity in-
vestments, direct loans, indirect loans, and loan guaran-
tees to eligible entities for the planning, pre-development, 
design, construction, operations or maintenance of rev-
enue-producing infrastructure projects in the United 
States with sufficient revenue sources and guarantees to 
support the interest and principal payments to the Bank. 
(b) SUPPORT FOR RURAL PROJECTS.—Not less than 
10 percent of the dollar amount of loans, equity invest-
ments, and loan guarantees provided by the Bank shall 
be with respect to infrastructure projects in rural areas. 
(c) LEVERAGING BANK INVESTMENTS.—The Bank 
shall attempt to cross subsidize non-revenue infrastructure 
projects with revenue generating infrastructure projects to 
diversify the loan portfolio. 
(d) NO COMMERCIAL OR INVESTMENT BANKING AC-
TIVITIES.—Notwithstanding any other provision of law, 
the Bank is prohibited from— 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(1) accepting customer deposits; or 
(2) engaging in financial or investment banking 
activities, except with respect to the Bank’s own rev-
enues. 
(e) PLEDGE AND CREDIT FACILITIES.— 
(1) PLEDGE.—The Bank shall have the author-
ity to pledge its loans to the discount window of the 
Board of Governors of the Federal Reserve System. 
(2) PURCHASE
OF
OBLIGATIONS.—The Sec-
retary of the Treasury may purchase obligations 
issued by the Bank in the same manner and under 
the same requirements that the Secretary purchases 
obligations under section 306(c) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1455(c)). 
(f) LEVERAGE LIMITATION.—The Bank shall main-
tain risk-based capital at no less than 10 percent, collec-
tively for the Bank and the Holding Company. 
(g) LIFECYCLE.—The Bank shall ensure that infra-
structure projects account for long-term operations, main-
tenance, and life-cycle costs and obligations to ensure that 
the infrastructure projects maximize the useful life of each 
applicable asset. 
(h) INFRASTRUCTURE DELIVERY.—The Bank, as a 
clearinghouse for infrastructure finance, may provide im-
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
plementation advisory assistance, directly or indirectly, to 
infrastructure projects. 
(i) CREDIT RATING.—The Bank shall accept credit 
ratings consistent with typical infrastructure market prac-
tice to enhance deployment of capital. 
(j) 
PROHIBITION
ON
FUNDING
OF
FOREIGN 
PROJECTS.—The Bank is prohibited from providing eq-
uity investments, direct loans, indirect loans, and loan 
guarantees for infrastructure projects not located within 
the United States. 
(k) PROHIBITION WITH RESPECT TO CHINA.—The 
Bank is prohibited from providing equity investments, di-
rect loans, indirect loans, and loan guarantees for infra-
structure projects that are owned, directed, controlled, fi-
nanced, or influenced by the Government of the People’s 
Republic of China, the Chinese Communist Party, or the 
People’s Liberation Army. 
SEC. 6. HOLDING COMPANY SECURITIES. 
(a) EQUITY SECURITIES.— 
(1) IN GENERAL.—The Holding Company shall 
issue such equity securities as the Board of Direc-
tors of the Holding Company determines appro-
priate. 
(2) DIVIDENDS.—The Holding Company may 
make such dividend payments on the equity securi-
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
ties of the Holding Company as the Holding Com-
pany determines appropriate. 
(3) RESTRICTION
ON
VOTING
RIGHTS.—Any 
holder of an equity security of the Holding Company 
that is a non-United States individual or entity shall 
have no voting rights with respect to such equity se-
curity. 
(b) BONDS.— 
(1) STANDARD BONDS.—The Holding Company 
may issue standard bonds with maturities up to 30 
years or longer, as needed. 
(2) OTHER
BONDS.—The Holding Company 
may issue other bonds, notes, and marketable securi-
ties with maturities and interest rates as the Hold-
ing Company determines appropriate. 
(3) AUTHORITY TO PURCHASE BONDS.— 
(A) IN GENERAL.—The Secretary of the 
Treasury and the Board of Governors of the 
Federal Reserve System may purchase bonds 
issued under this section. 
(B) LIMITATION.—The aggregate amount 
of outstanding bonds purchased by the Sec-
retary under this paragraph may not exceed 5 
percent of the total amount of the outstanding 
bonds of the Holding Company. 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(c) LEVERAGE LIMITATION.—The Holding Company 
shall maintain risk-based capital at no less than 10 per-
cent, collectively for the Bank and the Holding Company. 
(d) INVESTMENT
LIMITATION
ON
NON-UNITED 
STATES INDIVIDUALS AND ENTITIES.— 
(1) Non-United States individuals and entities 
may not hold more than 25 percent, in the aggre-
gate, of the equity securities and bonds of the Hold-
ing Company. 
(2) The Formation Agent and Holding Com-
pany are prohibited from issuing any bond, note, 
marketable security, or other financial instrument to 
any person or entity— 
(A) affiliated with, owned by, or directed, 
controlled, financed, or influenced by the Gov-
ernment of the People’s Republic of China, the 
Chinese Communist Party, or the People’s Lib-
eration Army; or 
(B) affiliated with, owned by, or directed, 
controlled, financed, or influenced by a State 
Sponsor of Terrorism, as so designated by the 
Secretary of State. 
SEC. 7. OVERSIGHT AND REGULATION. 
The Board of Governors of the Federal Reserve Sys-
tem shall— 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(1) have oversight and supervisory authority 
over the Holding Company and the Bank, in order 
to ensure the safe and sound operation of the Hold-
ing Company and the Bank; and 
(2) shall regulate Bank activities to ensure 
compliance with the requirements set forth in this 
Act. 
SEC. 8. INFRASTRUCTURE GUARANTEE FUND. 
The Bank shall establish an Infrastructure Guar-
antee Fund that shall be used with respect to specific 
loans or loan guarantees made by the Bank in the event 
of any non-payment by the recipient of such loan or loan 
guarantee. 
SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM 
TAXATION. 
Effective for taxable years ending on or after the date 
of enactment of this Act, the Holding Company and the 
Bank, including franchises, capital, reserves, surplus, ad-
vances, and income of the Holding Company or Bank, 
shall be exempt from all taxation imposed by the United 
States and any State, county, municipal, or local taxing 
authority, except that any real property of the Holding 
Company and the Bank shall be subject to State, county, 
municipal, or local taxation to the same extent according 
to its value as other real property is taxed. 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COM-
PANY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended— 
(1) by adding at the end the following new sec-
tion: 
‘‘SEC. 45BB. FEDERAL INFRASTRUCTURE BANK HOLDING 
COMPANY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a taxpayer who holds a qualified Holding Com-
pany equity investment on a credit allowance date of such 
investment which occurs during the taxable year, the Fed-
eral Infrastructure Bank Holding Company credit deter-
mined under this section for such taxable year is an 
amount equal to 10 percent of the amount paid to the 
Holding Company for such investment at its original issue. 
‘‘(b) CREDIT ALLOWANCE DATE.—For purposes of 
this section, the credit allowance date with respect to any 
qualified Holding Company equity investment is— 
‘‘(1) the date on which such investment is ini-
tially made; and 
‘‘(2) each of the 4 taxable years thereafter. 
‘‘(c) QUALIFIED HOLDING COMPANY EQUITY IN-
VESTMENT.—For purposes of this section, the term ‘quali-
fied Holding Company equity investment’ means any eq-
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
uity investment originally issued by the Holding Company 
to the taxpayer under section 6(a)(1) of the Federal Infra-
structure Bank Act of 2025 not later than 3 years after 
the formation of the Federal Infrastructure Bank Holding 
Company pursuant to section 3 of the Federal Infrastruc-
ture Bank Act of 2025. 
‘‘(d) HOLDING COMPANY.—For purposes of this sec-
tion, the term ‘Holding Company’ means the Federal In-
frastructure Bank Holding Company established by the 
Federal Infrastructure Bank Act of 2025.’’; and 
(2) in the table of contents for such subpart, by 
adding at the end the following: 
‘‘45BB. Federal Infrastructure Bank Holding Company credit.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) of 
such Code is amended by striking ‘‘plus’’ at the end of 
paragraph (37), by striking the period at the end of para-
graph (38) and inserting ‘‘, plus’’, and by adding at the 
end the following new paragraph: 
‘‘(39) the Federal Infrastructure Bank Holding 
Company credit determined under section 45BB.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 11. RULE OF CONSTRUCTION. 
Nothing in this Act may be construed as authorizing 
the Federal Government to guarantee the assets of the 
Bank or Holding Company. 
Æ 
VerDate Sep 11 2014 
21:47 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6301
E:\BILLS\H1235.IH
H1235
kjohnson on DSK7ZCZBW3PROD with $$_JOB