Bills of Congress by U.S. Congress

H.R.1235 - Federal Infrastructure Bank Act of 2025 (119th Congress)

Summary

H.R.1235, the Federal Infrastructure Bank Act of 2025, proposes to establish a Federal Infrastructure Bank and a Holding Company to facilitate investment in economically viable U.S. infrastructure projects. The bank would provide loans, equity investments, and loan guarantees to eligible entities for infrastructure projects that provide a public benefit. The bill prioritizes revenue-producing projects and allocates a minimum of 10% of its investments to rural areas.

Expected Effects

The establishment of the Federal Infrastructure Bank is intended to spur investment in infrastructure projects across various sectors, including transportation, energy, and water management. This could lead to improved infrastructure, job creation, and economic growth. The bank's structure, with a Holding Company and a Federal Banking Charter, aims to attract private investment while maintaining oversight.

Potential Benefits

  • Increased investment in critical infrastructure projects.
  • Job creation in construction, engineering, and related sectors.
  • Improved transportation, energy, and water systems.
  • Support for infrastructure development in rural areas.
  • Potential for long-term economic growth and enhanced public services.

Potential Disadvantages

  • Potential for mismanagement or corruption in project selection and funding.
  • Risk of prioritizing revenue-generating projects over essential but less profitable ones.
  • Possible negative impacts on local communities due to infrastructure development.
  • Concerns about the Holding Company's exemption from taxation.
  • Potential for the bank to become politically influenced.

Constitutional Alignment

The bill's focus on infrastructure development aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. The establishment of a federal bank also relates to Congress's power to coin money and regulate its value (Article I, Section 8, Clause 5). However, the exemption from taxation for the Holding Company and the Bank could raise questions under the principle of equal treatment, although Congress has broad authority over taxation.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).