H.R. 1235: Federal Infrastructure Bank Act of 2025

This bill, known as the Federal Infrastructure Bank Act of 2025, proposes to establish a Federal Infrastructure Bank aimed at enhancing investment and long-term financing for economically viable infrastructure projects in the United States. The key points of the bill include:

1. Establishment of the Federal Infrastructure Bank

The bill creates a Federal Infrastructure Bank as a subsidiary of a newly formed Federal Infrastructure Bank Holding Company. The bank will be located in Delaware and operate under a national bank charter.

2. Functions of the Bank

The main activities of the Bank will include:

• Providing equity investments, direct loans, indirect loans, and loan guarantees to eligible entities.
• Focusing on revenue-generating infrastructure projects that can support their own financing.
• Ensuring that at least 10 percent of its support goes towards projects in rural areas.
• Cross-subsidizing non-revenue projects with revenue-producing ones to diversify financial risk.
• Providing advisory services for implementing infrastructure projects.

3. Governance

The Bank will have a Board of Directors, with specific members elected for four-year terms. The earnings and reserves of the Bank will not be considered government funds, meaning they will operate with financial independence from the federal government.

4. Regulatory Oversight

The Board of Governors of the Federal Reserve System will oversee the operations of both the Bank and the Holding Company, ensuring compliance with the established regulations and safe operations.

5. Taxation Exemptions

The Holding Company and the Bank will be exempt from several types of taxes, except for real property taxes, which will be subject to local taxation like other properties.

6. Prohibitions

The Bank is explicitly prohibited from:

• Funding infrastructure projects outside the United States.
• Engaging with entities controlled by the Chinese government or related entities in terms of financing infrastructure.

7. Funding Mechanisms

The Bank can pledge its loans for liquidity and can also allow the Secretary of the Treasury to purchase obligations from the Bank, providing a layer of financial security for its operations.

8. Infrastructure Guarantee Fund

An Infrastructure Guarantee Fund will be established to cover specific loans or loan guarantees that may default, adding an extra layer of security for financial transactions.

9. Holding Company Securities

The Holding Company will issue various equity securities and bonds, with restrictions placed on foreign individuals' voting rights and investment limits. Non-U.S. entities will not be allowed to have substantial control over the Holding Company.

10. Infrastructure Project Definition

The bill defines "infrastructure projects" to include a wide range of facilities and services, including roads, bridges, ports, airports, public transportation systems, and more.

11. Eligibility of Entities

The bill outlines who qualifies as 'eligible entities' to receive support from the Bank, including corporations, state governments, partnerships, and trusts.

12. Risk-Based Capital Requirements

The Bank and the Holding Company must maintain a risk-based capital ratio of at least 10%, which provides stability and financial prudence in their operations.

Relevant Companies

• FLR (Fluor Corporation) – as a construction and engineering firm, it may be involved in numerous infrastructure projects financed by the Bank.
• SAIA (Saia, Inc.) – a transportation and logistics company that could benefit from investments in infrastructure related to transport.