To facilitate efficient investments and financing of infrastructure projects and new job creation through the establishment of a National Infrastructure Bank, and for other purposes.
Sponsors
Legislative Progress
IntroducedMr. Davis of Illinois (for himself, Mr. Smith of Washington, …
Summary
What This Bill Does
This bill creates a National Infrastructure Bank (NIB) - a new government-backed financial institution authorized to provide up to $5 trillion in loans for roads, bridges, water systems, broadband, energy grids, affordable housing, and other infrastructure projects. The Bank would raise capital by exchanging Treasury securities for preferred stock and operate as a self-sustaining lending institution rather than relying on annual federal appropriations.
Who Benefits and How
Construction and engineering firms gain massive new revenue opportunities from the $5 trillion lending capacity for infrastructure projects nationwide.
Labor unions benefit significantly through guaranteed Board representation (AFL-CIO, Building Trades), mandatory project labor agreements, prevailing wage requirements (Davis-Bacon), and hiring preferences on all Bank-financed projects.
State and local governments gain access to low-cost, long-term infrastructure financing with technical assistance from regional planning groups and the Bank itself.
Small disadvantaged businesses receive a 10% set-aside of all Bank-financed contracts, with special programs for minority-, women-, and indigenous-owned businesses.
Domestic manufacturers benefit from Buy America requirements that mandate use of American iron, steel, and construction materials.
Local financial institutions (community banks, credit unions, CDFIs) are protected from competition and required partners in Bank lending.
Investors receive tax-free dividends on Bank preferred stock, making it an attractive investment vehicle.
Who Bears the Burden and How
Federal taxpayers bear contingent liability - the U.S. Treasury must cover any losses exceeding the Bank's loan-loss reserves, backed by "full faith and credit" of the United States. Initial appropriations of $100 million are authorized for FY2025-2026.
Non-union contractors face barriers to entry on Bank-financed projects in states requiring project labor agreements.
Foreign manufacturers are excluded from supplying iron, steel, and construction materials for Bank-financed projects under Buy America requirements.
Project developers face higher compliance costs from prevailing wage, environmental review, local hiring, and civil rights requirements.
Key Provisions
- Creates a 25-member presidentially-appointed Board with mandatory labor union, Corps of Engineers, and disadvantaged community representation
- Authorizes up to $500 billion in capital stock and $5 trillion in total loans
- Requires 7+ regional economic accelerator planning groups to develop infrastructure pipelines
- Mandates prevailing wages, project labor agreements (in covered states), and local hiring preferences
- Establishes 10% set-aside for socially/economically disadvantaged small businesses
- Creates Special Inspector General for oversight and annual audits
- Exempts the Bank from federal income tax and provides tax-free dividends to investors
- Requires partnership with local financial institutions rather than competition
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Establishes a National Infrastructure Bank (NIB) as a mixed-ownership government corporation to provide up to $5 trillion in loans, loan guarantees, and other financing for infrastructure projects including transportation, energy, environmental, telecommunications, and community development infrastructure.
Policy Domains
Legislative Strategy
"Create a large-scale public infrastructure financing mechanism modeled on historical national banks (First Bank of US, Second Bank of US, Reconstruction Finance Corporation) to address a claimed $3.7 trillion infrastructure financing gap without relying on additional Federal taxes or deficits"
Likely Beneficiaries
- Construction and engineering firms (major contracts for infrastructure projects)
- Labor unions (prevailing wage requirements, project labor agreements, union representation on Board)
- State and local governments (access to low-cost infrastructure financing)
- Holders of Treasury securities (can exchange for preferred stock with guaranteed dividends)
- Disadvantaged communities (subsidized loans, hiring preferences)
- Small business concerns owned by socially/economically disadvantaged individuals (10% set-aside)
- Local financial institutions (partnership requirements for Bank lending)
Likely Burden Bearers
- Federal taxpayers (contingent liability for Bank losses, $100 billion Treasury subscription authority)
- Private infrastructure developers (restrictions on privatization of public infrastructure)
- Non-union contractors (project labor agreement requirements in many states)
- Foreign manufacturers (Buy America requirements)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_bank"
- → National Infrastructure Bank
- "the_board"
- → Board of Directors of the National Infrastructure Bank
- "the_secretary"
- → Secretary of the Treasury
- "the_executive_committee"
- → Executive Committee of the Bank
Key Definitions
Terms defined in this bill
The National Infrastructure Bank established under section 202(a)
A State or political subdivision, unit of local government, publicly owned utility, special purpose district, public authority, Indian Tribe, public trust, private entity, or public-private partnership
A delineated account to receive and disburse grant money to fully or partially subsidize project loans to entities in disadvantaged communities
Financing provided through any combination of loans or bond financing, in cooperation with private lenders or State revolving funds, integrated into a single agreement
Housing that meets the criteria established under section 215 of the Cranston-Gonzalez National Affordable Housing Act
Any census block group where 30% or more of the population have annual household income at or below the greater of 80% of area median income or 200% of federal poverty line
Any transportation, energy, environmental, telecommunications, or community development infrastructure project for which a development plan is presented to the Bank
A community that is a low-income community or a federally recognized area of economic distress
A pre-hire collective bargaining agreement with one or more labor organizations establishing terms and conditions of employment for a specific construction project
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology