I 119th CONGRESS 1st Session H. R. 1235 IN THE HOUSE OF REPRESENTATIVES February 12, 2025 Mr. Webster of Florida (for himself and Mr. Carbajal ) 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. Short title This Act may be cited as the Federal Infrastructure Bank Act of 2025 . 2. Definitions For the purposes of this Act: (1) Bank The term Bank means the Federal Infrastructure Bank established under section 4. (2) Eligible entity The term eligible entity means— (A) a corporation, limited liability company, or any other legally established corporate form; (B) a partnership, including a public-private partnership; (C) a joint venture; (D) a trust; (E) a State; (F) any other governmental entity, including a political subdivision or any other instrumentality 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 repair of projects, which provide public benefit or use, in the following categories: (A) Highway and roadway facilities, including bridges and tunnels. (B) Port or marine terminal facilities, including approaches to marine terminal facilities or inland port facilities, and port or marine equipment including fixed equipment to serve approaches to marine terminals or inland ports. (C) Airports, heliports, vertiports, spaceports, or air traffic control systems and facilities. (D) Transmission or distribution pipelines. (E) Facilities or equipment for energy transmission, distribution, or storage. (F) Intercity passenger or freight rail lines, facilities, or equipment. (G) Intercity passenger bus facilities or equipment. (H) Public transportation facilities or equipment. (I) Inland waterways. (J) Intermodal facilities or equipment. (K) Water treatment and solid waste disposal facilities and associated infrastructure such as pipes. (L) Storm water management systems. (M) Dams and levees. (N) Any other infrastructure project which the Bank identifies as providing a public benefit with regards to infrastructure. (5) Risk-based capital The term risk-based capital shall have the meaning given that term by the Board of Governors of the Federal Reserve System. (6) Rural The term rural means any area not in a metropolitan statistical area with a population of 50,000 or greater. (7) State The term State means each of the 50 several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and each federally recognized Indian Tribe. (8) State infrastructure bank The term State infrastructure bank means a State infrastructure 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, component unit, or other governmental entity of the State. 3. Selection of the Formation Agent (a) In general Within 60 days of the date of enactment of this Act, the Secretary of the Treasury, in consultation 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. (b) Establishment of the Federal Infrastructure 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 Infrastructure Bank Holding Company Board of Directors, which shall— (1) initially consist of 7 members; (2) be elected by the shareholders of the Holding 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 qualified 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 Company and the Federal Infrastructure Bank. (c) Earnings And reserves not Government funds The earnings and reserves of the Holding Company shall be the sole property of the Holding Company and are not Government funds or public funds. (d) Treatment of shareholders of the Formation Agent The Formation Agent shall issue equity securities 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 shareholder upon the establishment of the Holding Company. 4. Establishment of the Federal Infrastructure Bank (a) In general The Formation Agent shall establish the Federal Infrastructure Bank as a Delaware corporation 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. (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. 5. Functions of the Bank (a) In general The Bank shall provide equity investments, direct loans, indirect loans, and loan guarantees to eligible entities for the planning, pre-development, design, construction, operations or maintenance of revenue-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 investments, 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 activities Notwithstanding any other provision of law, the Bank is prohibited from— (1) accepting customer deposits; or (2) engaging in financial or investment banking activities, except with respect to the Bank’s own revenues. (e) Pledge and credit facilities (1) Pledge The Bank shall have the authority to pledge its loans to the discount window of the Board of Governors of the Federal Reserve System. (2) Purchase of obligations The Secretary 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 maintain risk-based capital at no less than 10 percent, collectively for the Bank and the Holding Company. (g) Lifecycle The Bank shall ensure that infrastructure projects account for long-term operations, maintenance, 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 implementation advisory assistance, directly or indirectly, to infrastructure projects. (i) Credit rating The Bank shall accept credit ratings consistent with typical infrastructure market practice to enhance deployment of capital. (j) Prohibition on funding of foreign projects The Bank is prohibited from providing equity 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, direct loans, indirect loans, and loan guarantees for infrastructure projects that are owned, directed, controlled, financed, or influenced by the Government of the People’s Republic of China, the Chinese Communist Party, or the People’s Liberation Army. 6. Holding Company securities (a) Equity securities (1) In general The Holding Company shall issue such equity securities as the Board of Directors of the Holding Company determines appropriate. (2) Dividends The Holding Company may make such dividend payments on the equity securities of the Holding Company as the Holding Company 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 security. (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 securities with maturities and interest rates as the Holding 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 Secretary under this paragraph may not exceed 5 percent of the total amount of the outstanding bonds of the Holding Company. (c) Leverage limitation The Holding Company shall maintain risk-based capital at no less than 10 percent, 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 aggregate, of the equity securities and bonds of the Holding Company. (2) The Formation Agent and Holding Company 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 Government of the People’s Republic of China, the Chinese Communist Party, or the People’s Liberation 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. 7. Oversight and regulation The Board of Governors of the Federal Reserve System shall— (1) have oversight and supervisory authority over the Holding Company and the Bank, in order to ensure the safe and sound operation of the Holding Company and the Bank; and (2) shall regulate Bank activities to ensure compliance with the requirements set forth in this Act. 8. Infrastructure Guarantee Fund The Bank shall establish an Infrastructure Guarantee 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. 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, advances, 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. 10. Federal Infrastructure Bank Holding Company credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended— (1) by adding at the end the following new section: 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 Company equity investment on a credit allowance date of such investment which occurs during the taxable year, the Federal Infrastructure Bank Holding Company credit determined 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 initially made; and (2) each of the 4 taxable years thereafter. (c) Qualified Holding Company equity investment For purposes of this section, the term qualified Holding Company equity investment means any equity investment originally issued by the Holding Company to the taxpayer under section 6(a)(1) of the Federal Infrastructure 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 Infrastructure Bank Act of 2025 . (d) Holding company For purposes of this section, the term Holding Company means the Federal Infrastructure 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 paragraph (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. 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.