# What the Federal Infrastructure Bank Act Actually Does

This bill creates a new private bank specifically designed to finance major infrastructure projects across the United States. Think of it as a specialized lending institution that would focus exclusively on funding things like highways, bridges, airports, water systems, and power lines—the kind of big, expensive projects that take years to build and generate revenue through tolls, fees, or user payments.

Here's how it would work in practice: The bill establishes a holding company that would own and operate the Federal Infrastructure Bank as a national bank chartered by the federal government. A private company with infrastructure finance experience would be selected to set up this bank and get it running. The bank would then offer loans, investments, and loan guarantees to states, cities, private companies, and public-private partnerships that want to build or improve infrastructure. Importantly, this isn't taxpayer money—the bank would operate like a regular business, raising capital by issuing bonds and equity shares to investors, then using that money to finance infrastructure projects that can generate enough revenue to pay back the loans.

The bill includes several important restrictions and requirements. At least 10 percent of the bank's investments must go to rural areas, ensuring smaller communities aren't left out. The bank cannot accept regular customer deposits or do typical banking activities—it's purely focused on infrastructure lending. It's also prohibited from funding any projects owned or controlled by China or terrorist-designated countries. The Federal Reserve would oversee the bank to ensure it operates safely and soundly. Additionally, the bill offers a tax credit to investors who buy equity shares in the holding company, giving them a 10 percent credit on their investment spread over five years, which is designed to attract private capital to get the bank started.

Federal Infrastructure Bank Act of 2023

Rep. Webster, Daniel [R-FL-11]

Federal Infrastructure Bank Act of 2023 This bill establishes the Federal Infrastructure Bank and the Federal Infrastructure Bank Holding Company (FIBHC). The bank shall be a wholly owned subsidiary of the FIBHC. The bank must provide equity investments, direct loans, and loan guarantees for the planning, predevelopment, design, construction, operation or maintenance of infrastructure projects in the United States with sufficient revenue sources and guarantees to support the interest and principal payments to the bank. At least 10% of the loans, equity investments, and loan guarantees must be for infrastructure projects in rural areas. The Board of Governors of the Federal Reserve System shall have oversight and supervisory authority over the FIBHC and the bank. The bank must establish an Infrastructure Guarantee Fund to cover loans and loan guarantees in the event of nonpayment by loan recipients. The bill provides for a taxpayer credit in an amount equal to 10% of the amount such taxpayer paid to the FIBHC for an equity investment at its original issue.