The Federal Infrastructure Bank Act of 2025 establishes a national infrastructure bank to provide financial support for infrastructure projects across the U.S., with a focus on revenue-generating projects and rural development.
Daniel Webster
Representative
FL-11
The Federal Infrastructure Bank Act of 2025 establishes a Federal Infrastructure Bank to provide financial support for infrastructure projects across the U.S. by offering loans, equity investments, and loan guarantees to eligible entities. A Federal Infrastructure Bank Holding Company will be established to oversee the Bank, and the Federal Reserve will regulate both entities. The Holding Company and the Bank are exempt from most taxes, and investors in the Holding Company can receive a tax credit. The act prioritizes revenue-generating projects and rural infrastructure development, while prohibiting funding for projects connected to specific foreign entities.
Federal Infrastructure Bank Act of 2025: New Bank Promises Billions for Roads, Bridges, and More – Starting Now
The Federal Infrastructure Bank Act of 2025 establishes a new, government-backed bank – but crucially not using taxpayer money, according to the bill's text – to fund major infrastructure projects across the country. Think roads, bridges, water systems, and even energy grids. The kicker? This bank is designed to operate independently, making its own investment decisions, and it's explicitly barred from funding projects with ties to the Chinese government or state sponsors of terrorism (SEC. 5).
Building Blocks: How the Bank Works
The Federal Infrastructure Bank will be set up as a corporation, owned by a Holding Company (SEC. 3 & 4). It'll offer loans, loan guarantees, and even equity investments to get projects off the ground (SEC. 5). The Holding Company will be able to issue its own stocks and bonds (SEC. 6). Importantly, at least 10% of the Bank's funding must go to rural areas – those outside big cities with 50,000+ people (SEC. 2 & 5). The Bank will have regional offices across the U.S. within five years (SEC. 4).
Real-World Rollout: Who Benefits, and How?
This isn't just about big national projects. A local construction company could get a loan to upgrade a crumbling bridge. A rural town could finally get high-speed internet infrastructure. A state government could partner with a private company on a major port expansion, with the Bank providing crucial financing. Crucially, the bill mandates the bank consider the entire lifecycle cost of a project, including long-term maintenance (SEC. 5). This should mean less cutting corners upfront, leading to bigger headaches down the road. The Bank is also required to diversify its loan portfolio by using revenue-generating projects to support non-revenue projects (SEC. 5). The types of projects are broad, including roads, energy, water treatment, and more (SEC. 2).
The Fine Print: Taxes and Oversight
The Bank and its Holding Company get a major tax break – they're exempt from pretty much all federal, state, and local taxes (SEC. 9). However, any real estate they own is still subject to property taxes. To encourage investment, there's a new tax credit: investors in the Holding Company can get a credit equal to 10% of their initial investment for five years (SEC. 10). The Federal Reserve will oversee the Bank and Holding Company to ensure they're operating safely (SEC. 7). One important note: the bill explicitly states that the federal government is not guaranteeing the Bank's assets (SEC. 11). The Bank is also required to maintain a minimum risk-based capital of 10% (SEC. 5).