New Infrastructure Corporation to Borrow Up to $5 Billion Annually from Pension Funds Starting 2026

The National Infrastructure Investment Corporation Act of 2025 creates a brand-new government entity—the National Infrastructure Investment Corporation—tasked with fixing the country’s massive infrastructure funding gap. If you’ve seen the reports, you know the American Society of Civil Engineers gave us a C grade, estimating we need about $3.7 trillion to get things up to speed. This Corporation is designed to fill that gap by financing massive, complex projects that are too big for states and cities to handle alone (SEC. 2).

The New Money Machine: Loans and Guarantees

Think of the Corporation as a specialized bank for mega-projects like high-speed rail, massive energy grids, or nationwide fiber networks. Its main job is to offer direct loans, loan guarantees, and bonds to qualified applicants for eligible infrastructure costs (SEC. 5). This isn't a free-for-all, though. Applicants need to submit detailed plans, cost estimates, and financial breakdowns. Crucially, the Corporation must use the same procedures and rules as the existing TIFIA program, which funds transportation projects, ensuring some established rigor is maintained (SEC. 5).

Where the Money Comes From: Your Retirement Account

Here’s the part that hits close to home for anyone with a 401k or pension: the Corporation is authorized to borrow money directly from pension funds to cover both its operating costs and the projects it funds (SEC. 7). Between fiscal years 2026 and 2030, the Board can accept up to $5 billion annually from these funds. They must pay interest on these loans, but the rate is fixed between 3 and 4 percent annually. For a worker whose pension fund is lending money, that fixed rate could be a good or bad deal depending on what the market is doing at the time. If market rates are higher, those funds could potentially miss out on higher returns, but if rates are low, 3-4 percent looks pretty solid.

Who’s Running the Show? A Political Board

Oversight is handled by a seven-member Board of Directors, and this structure is where politics meets policy (SEC. 4). The President appoints three members, but the other four are appointed directly by Congressional leadership—the Speaker and Minority Leader of the House, and the Majority and Minority Leaders of the Senate. This means five of the seven seats are directly controlled by political leaders. While members must have serious experience in construction, finance, or project management, the heavy political influence over appointments raises the question of whether project selection will be purely merit-based or if political priorities will take the lead.

The Congressional Veto Power

If you apply for a loan, you first have to consult with every member of Congress whose district or state would be affected by the project—a massive undertaking for any major cross-state project. Even after the Board approves funding, the application isn't finalized until Congress has had its say (SEC. 5). The Corporation must send a detailed report on the application to Congress, kicking off a 60-day waiting period. During this time, Congress can pass a joint resolution to disapprove the loan (SEC. 6). This gives Congress a powerful, direct veto over specific financial decisions, which could be a huge headache for project timelines if political squabbles erupt over a specific bridge or pipeline.

Accountability and the Long Haul

To keep things honest, the bill requires significant oversight. The Board must hire an Inspector General (IG) to perform annual financial audits and investigate the Corporation’s activities (SEC. 4, SEC. 6). Furthermore, the Government Accountability Office (GAO) will conduct a major review every five years, assessing the actual benefits and impacts of the funded projects. This focus on long-term, independent review is a necessary check on an entity that will be managing billions in public and private funds.