H.R. 5356 — National Infrastructure Bank Act of 2025

This section exempts the National Infrastructure Bank, established under title II of the National Infrastructure Bank Act of 2025, from federal income tax by adding it to the list of exempt government corporations in Section 501(l) of the Internal Revenue Code of 1986, effective for taxable years ending after enactment.

This section provides a charitable contribution deduction for contributions to the National Infrastructure Bank established under title II of the National Infrastructure Bank Act of 2025, subject to the 50% of adjusted gross income limitation, for taxable years ending after enactment.

This section excludes from gross income any dividends received on preferred stock of the National Infrastructure Bank pursuant to section 203(c) of the National Infrastructure Bank Act of 2025, for taxable years ending after enactment of this Act.

This section establishes definitions for terms used in this title, including "Bank" (i.e., the National Infrastructure Bank established under section 202(a)), "blended financing," "community development infrastructure" (i.e., development of affordable housing, transportation, water infrastructure, schools, affordable broadband, public parks and recreation, libraries, or public facilities that train workers and build labor skills), "disadvantaged community," "energy infrastructure project," and "environmental infrastructure project."

This section establishes the National Infrastructure Bank as a mixed-ownership Government corporation subject to chapter 91 of title 31, United States Code (except as otherwise provided in this Act); adds the Bank to the list of such corporations in 31 U.S.C. 9101(2); designates this Act as the Bank's charter; and directs the Secretary to assist in its establishment.

This section establishes the National Infrastructure Bank to facilitate long-term financing of infrastructure projects, business and economic growth, and job creation in the United States. The Bank is authorized to raise capital stock up to $500 billion, held as Treasury securities, with accumulation phased in as follows: (1) no more than $150 billion by the end of its first full fiscal year of operations, (2) no more than $300 billion by the end of its third full fiscal year, and (3) no more than $500 billion by the end of its fifth full fiscal year; following each phase-in milestone, the Board of Governors of the Federal Reserve System must assess the Bank's operations and report to Congress and the Bank's board on its fulfillment of the Act's purposes and responses to prior recommendations, with periodic assessments every fifth fiscal year thereafter. Capital stock must be subscribed by (1) public holders exchanging outstanding Treasury securities of three years or greater maturity or municipal bonds of five years or greater maturity, (2) paid-in cash, or (3) the U.S. Treasury as on-call subscriber up to $100 billion in 30-year Treasury bonds; the Bank must maintain risk-based capital of no less than 10 percent and is limited from purchasing newly issued U.S. public debt except to roll over existing holdings or convert cash purchases into Treasuries. All subscribed capital must be exchanged for equivalent non-voting preferred stock, callable by the Bank at market value after 20 years with a guaranteed redemption at current market price; the Bank must pay semiannual dividends on preferred stock at rates matching the exchanged Treasury security (plus 0.5 percent for tax-exempt organizations under IRC §501), or the 30-year Treasury bond rate for cash or municipal bond exchanges (plus 0.5 percent for tax-exempts), with priority over other uses of interest on Treasury holdings and authority for the board to adjust rates for new issuances to achieve desired capital levels. (Thus, non-Treasury, non-cash assets are liquidated by the Bank and treated as cash purchases.)

This section directs the Bank, through branch offices established under section 203(k), to facilitate the organization of not fewer than 7 regional economic accelerator planning groups defined by common economic, demographic, and infrastructure connectivities. These groups may (1) organize by state and local public sector officials, including through multijurisdictional or multistate agreements; (2) identify economic megaregions consisting of hub cities, related towns and suburbs, manufacturing production corridors, and rural areas; (3) identify infrastructure needs and priorities for economic megaregions, with input from the American Society of Civil Engineers and other trade, business, and industrial associations; (4) develop regional economic accelerator plans, including pipelines of infrastructure projects to improve supply chains, land use, and productivity while including all communities; (5) define how such projects will create energy savings, environmental improvements, job and wage growth, regional economic growth, and growth in regional tax income; (6) identify multijurisdictional agreements to strengthen for cross-jurisdictional infrastructure projects (e.g., transportation along the northeast corridor, flood mitigation, water management in southwestern states, national high-speed rail grid); (7) identify federal, state, or local laws and regulations to streamline for reduced costs and approval times while maintaining environmental and safety objectives; (8) seek public input on regional infrastructure development plans; (9) provide such plans to the Bank to inform infrastructure project selection for financing; and (10) assist entities in formulating and submitting projects for Bank financing by clarifying definitions, scope, selection criteria, and other approval factors under section 205.

This section establishes eligibility criteria for financial assistance from the Bank for infrastructure projects, requiring that projects (1) meet Act requirements, (2) have local, regional, or national significance, and (3) be in the public interest. It requires applicants to submit applications as specified by the Bank and directs the Executive Committee and Board to establish standard operating procedures and online application processes. The Board must evaluate applications based on project-specific factors, including (1) consistency with regional infrastructure plans, (2) life-cycle cost-benefit analysis, (3) promotion of economic growth and job creation (including through union apprenticeship programs), (4) environmental and public health benefits (e.g., greenhouse gas reductions), (5) project management capabilities, (6) strategic bundling and sizing for cost savings, (7) use of innovative technologies for reliability and resiliency, (8) preservation and connection to existing infrastructure, (9) promotion of domestic production of construction inputs, (10) categorical benefits, and (11) other Board-determined criteria. Categorical benefits for energy infrastructure projects include (1) smart grid development with modern security (i.e., functions defined in 42 U.S.C. 17386(d)), (2) transmission and distribution expansion (including for renewables and electrification), (3) enhancements for supply-demand balancing and outage restoration, and (4) energy-efficient buildings. Similar benefits are specified for transportation (e.g., congestion reduction, safety improvements) and environmental projects (e.g., flood protection, water system upgrades).

This section establishes a 25-member Board of Directors for the Bank, appointed by the President with Senate confirmation, including members representing different U.S. regions with specified qualifications: (1) 12 with at least 15 years of industrial and engineering experience; (2) 1 AFL-CIO representative; (3) 2 North America’s Building Trades Unions representatives; (4) 2 Corps of Engineers representatives; (5) 2 with state and local public sector experience; (6) 2 with finance experience; (7) 2 with economic development experience; and (8) 2 representing minority or disadvantaged communities. The President designates the chairperson and vice chairperson at appointment; board members serve 6-year terms (with initial staggered terms of 6 years for the chairperson and vice chairperson, 4 years for 12 members, and 2 years for 11 members); vacancies are filled for the remainder of the term; reappointment is permitted; and members serve part-time with per diem reimbursement (but are prohibited from participating in decisions affecting projects in which they or affiliates have an interest). The section further directs congressional leaders to submit board appointment recommendations within 30 days of enactment (after committee consultation), requires initial presidential nominations within 60 days of enactment and the first board meeting within 90 days of the last appointment, and sets quorum at 75% of confirmed members (rounded down). The Board must (1) promptly establish an executive committee, risk management committee, and audit committee; (2) develop and publish bylaws in the Federal Register within 180 days of the last appointment; and (3) oversee Bank operations, including reviewing the CEO’s policies, business plans, budgets, strategies, reports, risk management, audits, and organizational changes. Board meetings are open to the public with notice (except those closable for information on projects or markets, with public notice of closure decisions and later release of minutes).

This section establishes the powers of the Board of the Bank to carry out infrastructure project financing and monitoring, including (1) making senior and subordinated direct loans and loan guarantees; (2) developing specialized loan programs (e.g., for disadvantaged communities or community cooperatives) with flexible repayment terms; (3) issuing bonds; (4) entering contracts; (5) approving and monitoring projects upon recommendations and assessments from the Executive Committee; (6) suing and being sued (with limits on attachments against Bank property); (7) indemnifying Board members and officers; (8) serving as liaison to Congress, the executive branch, and state and local governments; and (9) exercising other necessary powers. The section further provides that Bank financial assistance does not limit state or local authority over private equity rates of return or supersede applicable state laws and authorizes the Board to request reimbursable details of expert personnel from specified federal agencies (e.g., Corps of Engineers, Departments of Transportation and Housing and Urban Development), which agencies may not unreasonably withhold.

This section establishes a nine-member Executive Committee of the Board, chaired by the chief executive officer and comprising the chief risk officer, chief operations officer, chief loan origination officer, chief compliance officer, chief financial officer, chief treasury officer, chief asset and liability management officer, and general counsel. A majority of the Board appoints members—who must have extensive retail banking experience and expertise in one or more infrastructure areas (e.g., transportation, energy, public housing)—determines their compensation and duties, fills vacancies, may remove members at discretion, with members serving six-year terms and eligible for reappointment. The chief executive officer develops and submits to the Board the Bank's annual business plans and budget, a long-term strategic infrastructure development plan consistent with regional plans under section 204, and other internal policies. The Executive Committee (1) establishes and submits for Board approval project application disclosure procedures, standardized terms and fees, and project selection guidelines and criteria; (2) accepts project proposals from entities, recommends them to the Board, and lists approved ones for financial assistance; and (3) develops a plan to provide technical assistance to state and local governments, regional planning groups, and other entities on Bank procedures, project pipelines, institutional structures, best practices, procurement, and project management. During their service, Executive Committee members may not hold public office or have any interest in Board-considered infrastructure projects or entities seeking Bank assistance.

This section establishes a five-member risk management committee for the Bank, headed by the chief risk officer, to be appointed by a majority of the Board. Committee members must have demonstrated expertise in treasury and asset/liability management, investment regulations, insurance, credit risk management and evaluations, or infrastructure development projects; they serve six-year terms (reappointable), with compensation and removal determined by a majority of the Board. The chief risk officer reports directly to the Board. The committee (1) develops financial, credit, and operational risk management guidelines and policies; (2) develops standards for loan agreements to promote diversification by geographic region, project type, and inclusion of rural and disadvantaged communities; (3) ensures compliance with specified Federal and State laws; (4) develops plans for all Bank financial assistance, including subsidy programs for disadvantaged communities and participation by minorities, women, indigenous people, and disadvantaged businesses; (5) monitors the Bank's overall financial, credit, and operational exposures; (6) establishes a standing subcommittee for regular credit evaluations of large infrastructure loans to verify compliance and performance; and (7) provides financial recommendations to the Board. Members are prohibited from holding public office or having interests in Bank-considered projects or entities seeking assistance during their service.

This section establishes an audit committee for the Bank consisting of 5 members headed by the chief compliance officer, with members appointed by a majority of the Board of Directors for 6-year terms (renewable), removable by Board majority, and compensated as determined by the Board. Committee members must have expertise in internal auditing, internal investigations, accounting practices, or financing practices; vacancies are filled as with original appointments; and members are prohibited during service from holding public office or having interests in infrastructure projects considered by the Board or in entities seeking Bank financial assistance. The chief compliance officer reports directly to the Board with duties as prescribed by statute, bylaws, or Board; the committee provides internal controls and auditing, oversees accounting activities, conducts internal investigations, issues financial reports, and works with outside auditors and public accountants appointed by the Board.

This section authorizes the Bank's chairperson of the Board, chief executive officer, chief risk officer, and chief compliance officer to appoint, remove, set compensation for, and define duties of qualified personnel serving the Board, Executive Committee, risk management committee, or audit committee, as required by the Act, Bank bylaws, and Board prescriptions. This section further prohibits the Bank from discriminating against employees or applicants on the basis of race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, sexual orientation, gender identity, pregnancy, or ethnic or social origin in employment practices including hiring, promotion, demotion, transfer, recruitment, layoff, termination, pay, compensation, and training selection.

This section establishes the Office of the Special Inspector General for the National Infrastructure Bank (SIG), appointed by the President with Senate advice and consent as soon as practicable after enactment based on integrity and expertise in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. The SIG is removable per 5 U.S.C. §403(b), paid at the annual rate for inspectors general under 5 U.S.C. §403(e), and not considered a policy-determining official under 5 U.S.C. §7324. The SIG must conduct, supervise, and coordinate audits and investigations of the bank's business activities; establish related systems, procedures, and controls; and perform other duties of inspectors general under 5 U.S.C. ch. 4. The SIG has authorities under 5 U.S.C. §§406 and 404(b)(1), may appoint competitive service personnel at General Schedule rates and exercise hiring flexibilities under 5 U.S.C. §3161(b)-(i), obtain temporary or intermittent expert/consultant services (including stenographic reporting) under 5 U.S.C. §3109 at daily rates not to exceed the GS-15 equivalent under 5 U.S.C. §5332, and contract for audits, studies, or other services. The SIG may request information or assistance from federal entities (reporting any unreasonable refusals to the Secretary) and must submit annual reports on activities to the President and appropriate congressional committees, beginning one year after Senate confirmation (with limitations on public disclosure of protected information).

This section requires the Bank, recipients of its financial assistance, and contractors or subcontractors on Bank-funded infrastructure projects to comply with applicable Federal and State laws, including through loan and written agreements. It applies Davis-Bacon prevailing wage requirements (40 U.S.C. §§ 3141 et seq.) to such projects, with enforcement by the Secretary of Labor; mandates project labor agreements (as defined in NLRA §8(f), 29 U.S.C. 158(f), i.e., pre-hire collective bargaining agreements for construction) for recipients in "covered States" (those permitting such requirements or receiving $35 million or more in Bank-financed construction contracts) while permitting voluntary agreements elsewhere; applies Buy America requirements from the Infrastructure Investment and Jobs Act; deems Bank-funded programs as receiving Federal assistance for specified nondiscrimination laws (e.g., Age Discrimination Act, Rehabilitation Act §504, Title IX); requires 10% of financial assistance expended through small businesses owned by socially and economically disadvantaged individuals or qualified HUBZone small businesses (49 U.S.C. §47113(a)); and directs hiring preferences for local, rural, or disadvantaged workers (e.g., ex-offenders, veterans, women, racial and ethnic minorities) in partnership with apprenticeship programs or workforce boards.

This section exempts contracts and loans under this Act from the Federal Credit Reform Act of 1990 requirement for advance budget authority to cover costs prior to incurring new direct loan obligations or loan guarantee commitments (2 U.S.C. 661c(b)). The section further exempts any indebtedness of the Bank from priority otherwise accorded to federal claims under 31 U.S.C. 3713.

This section requires the Bank to conduct loan activities in partnership with local financial institutions and prohibits the Bank from competing with them, except when such activities are not offered by local financial institutions in the relevant jurisdiction. It authorizes the Bank to perform clearinghouse functions—including domestic and foreign exchange and rediscounting—for local financial institutions that designate it as a reserve depositary.

This section establishes audit, reporting, and record-keeping requirements for the Bank. Specifically, it (1) requires the Bank's books to be maintained in accordance with generally accepted accounting principles and audited annually by independent public accountants appointed by the Board; (2) directs the Board to submit an annual report to the President and Congress within 90 days after the end of each fiscal year on operations, outstanding obligations issued and redeemed that year, and funded infrastructure projects (disclosing entities with development, ownership, or operational interests), and requires the GAO to submit to Congress, not later than five years after enactment, a report evaluating the Bank's activities and project impacts relative to the Bank's criteria; and (3) mandates maintenance of books and records supporting transactions and projects (with details and funding amounts on a publicly accessible database), a public comment period of not less than 30 days on each posted financing agreement before final financing, and inspection access for the Secretary and GAO.

This section specifies that the budgetary effects of this Act, for purposes of complying with the Statutory Pay-As-You-Go Act of 2010, are to be determined by reference to the latest statement titled “Budgetary Effects of PAYGO Legislation” submitted for printing in the Congressional Record by the Chairman of the House Budget Committee prior to the vote on passage.