National Infrastructure Bank Act of 2025
The National Infrastructure Bank Act of 2025 would create a new National Infrastructure Bank (NIB)—a mixed-ownership government corporation—to finance long-term infrastructure projects across the United States. The Bank would be capitalized up to $500 billion and fund projects through direct loans, blended financing, and bond financing, with the goal of expanding investment, creating jobs, and strengthening regional economies. It would be funded by a combination of stock exchanged for Treasury securities or municipal bonds, cash, and a Treasury on-call line, and would operate with oversight and accountability provisions, regional planning groups, and clear criteria for project eligibility. Net earnings would be used to fund dividends to the U.S. Treasury and to subsidize loans for disadvantaged communities through a dedicated trust fund. Tax treatment would favor the Bank and its contributors, and losses beyond loan-loss provisions could become a contingent liability backed by the full faith and credit of the U.S. government. The bill also emphasizes strategic planning at the regional level through the formation of at least seven regional economic accelerator planning groups to identify megaregions, prioritize projects, streamline certain laws, and feed into the Bank’s financing decisions. It lays out broad eligibility criteria for Bank assistance, including regional significance, public interest, lifecycle cost-benefit analysis, and strong emphasis on job creation, environmental benefits, and workforce development. The text provided covers the core structure, capitalization, financing tools, governance, regional planning, and project-eligibility framework, but does not include the complete sections that follow section 205 in the excerpt.
Key Points
- 1Establishes the National Infrastructure Bank as a mixed-ownership government corporation to finance infrastructure nationally, with a capitalization cap of up to $500 billion.
- 2Capital structure and funding:
- 3- Capital stock to be subscribed by public holders of Treasury securities or municipal bonds, cash, and up to $100 billion from the U.S. Treasury as an on-call subscriber.
- 4- Bank must maintain at least 10% risk-based capital; capital accumulation is phased (up to $150B in year 1, $300B by year 3, $500B by year 5, then full amount thereafter).
- 5- The Bank’s capital stock is exchanged for preferred stock with a guaranteed redemption value and limited voting rights; preferred dividends have specified rates and priority over other uses.
- 6Financing tools and borrowing:
- 7- The Bank can provide direct loans and blended financing (mix of loans and bond financing) and may issue bonds, maintain a revolving line of credit with the Federal Reserve, and borrow from banks or wholesale markets.
- 8- Total loan commitments are capped at $5 trillion.
- 9- Loans must reflect project longevity and profitability; interest rates are risk-based and may include subsidies for disadvantaged communities.
- 10- The Bank may provide loan guarantees, insurance, and related services, but may not engage in traditional investment banking activities like underwriting for customers.
- 11Governance and oversight:
- 12- Board of Directors, with Executive, Risk, and Audit Committees; Special Inspector General for the National Infrastructure Bank; audits and reports to President and Congress; potential periodic assessments by the Federal Reserve.
- 13- The Bank is exempt from income tax; contributions to the Bank may be treated as charitable for donors; certain preferred dividends are treated favorably for tax purposes.
- 14Regional planning and project pipeline:
- 15- Formation of at least seven regional economic accelerator planning groups to identify megaregions, develop infrastructure pipelines, and streamline cross-jurisdictional projects.
- 16- Groups assist in formulating project definitions, scope, and criteria for Bank financing and work to streamline relevant laws and regulations.
- 17Eligibility and project review:
- 18- Bank assistance requires projects to have regional or national significance and be in the public interest.
- 19- Applications must undergo standardized procedures; the Board will evaluate based on lifecycle benefits, economic impact, job creation, environmental and public health benefits, governance and project management capabilities, and other factors such as connectivity and bundling of projects.
- 20- Emphasis on modern technologies, resilience, sustainability, and benefits to disadvantaged communities.