Federal Infrastructure Bank Act of 2025

Key Points

• The bill creates a new, privately owned but federally chartered bank whose sole job is making loans, equity investments, and loan guarantees for big infrastructure projects like highways, ports, airports, pipelines, and water systems that generate their own revenue.
• Instead of taxpayer money, the bank runs on private investment, and to attract investors the bill offers a new federal tax credit worth 10 percent of the amount invested, repeated over 5 years.
• At least 10 percent of all the bank's financing has to go toward rural infrastructure projects, aiming to make sure small towns and farming communities get a guaranteed share of the money.
• The bank is legally barred from ever financing projects tied to the Chinese government, Communist Party, or military, or to any country designated as a state sponsor of terrorism.
• The Federal Reserve would supervise the bank for safety and soundness, and both the bank and its holding company would be exempt from nearly all federal, state, and local taxes except property taxes on real estate they own.