National Infrastructure Bank Act of 2025

Key Points

• The bill creates a new government-owned bank that can provide up to $5 trillion in loans to finance infrastructure projects across the country, covering roads, bridges, transit, water systems, energy, broadband, schools, and affordable housing.
• Rather than relying on new taxes, the bank raises its capital (up to $500 billion) by exchanging preferred stock for existing Treasury securities or municipal bonds, accepting cash purchases, and taking deposits like a regular bank.
• The bill targets disadvantaged and high-unemployment communities, requiring at least 10% of financial assistance to go to small businesses owned by socially and economically disadvantaged individuals. Leftover bank earnings are directed into a trust fund to subsidize loans for communities that cannot repay on normal terms.
• All construction workers on bank-funded projects must be paid prevailing local wages under Davis-Bacon rules, and project labor agreements are required in states that allow them. Hiring priority goes to veterans, people with disabilities, ex-offenders, women, and racial and ethnic minorities.
• A 25-member board appointed by the President would govern the bank, with at least seven regional planning groups identifying priority projects. A Special Inspector General and regular audits by the GAO provide oversight to prevent waste and fraud.
• The bill cites a $3.69 trillion gap between what the country needs for infrastructure and what current funding covers, pointing to historical national banks as models that spurred economic growth and reduced inequality.