National Infrastructure Bank Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3339 To facilitate efficient investments and financing of infrastructure projects and new job creation through the establishment of a National Infrastruc- ture Bank, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 19, 2021 Mr. DANNY K. DAVIS of Illinois introduced the following bill; which was re- ferred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Services, Education and Labor, Natural Resources, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To facilitate efficient investments and financing of infrastruc- ture projects and new job creation through the establish- ment of a National Infrastructure Bank, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) IN GENERAL.—This Act may be cited as the ‘‘Na- 4 tional Infrastructure Bank Act of 2021’’. 5 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 3339 IH (b) TABLE OF CONTENTS.—The table of contents of 1 this Act is as follows: 2 Sec. 1. Short title; table of contents. Sec. 2. Findings. TITLE I—REVENUE PROVISIONS Sec. 101. Treatment of National Infrastructure Bank as a Government cor- poration exempt from tax. Sec. 102. Treatment of contributions to the National Infrastructure Bank as charitable contributions. Sec. 103. Temporary rule to allow a deduction for cash contributions to the Na- tional Infrastructure Bank by certain taxpayers who do not elect to itemize deductions. Sec. 104. Preferred dividends of National Infrastructure Bank excludible from gross income. TITLE II—ESTABLISHMENT OF NATIONAL INFRASTRUCTURE BANK Sec. 201. Definitions. Sec. 202. Establishment of National Infrastructure Bank. Sec. 203. Purposes and authorizations. Sec. 204. Formation of regional economic accelerator planning groups. Sec. 205. Eligibility criteria for assistance from the bank. Sec. 206. Board of Directors. Sec. 207. Powers and limitations of the Board. Sec. 208. Executive committee. Sec. 209. Risk management committee. Sec. 210. Audit committee. Sec. 211. Personnel. Sec. 212. Special Inspector General for the National Infrastructure Bank. Sec. 213. Status and applicability of certain Federal and State laws. Sec. 214. Exemption from certain laws. Sec. 215. Audits; reports to President and Congress. Sec. 216. Budgetary effects. Sec. 217. Authorization of appropriations. SEC. 2. FINDINGS. 3 Congress finds the following: 4 (1) Throughout our Nation’s history, national 5 banks have played a crucial role in financing most 6 of our Nation’s public infrastructure. The largest 7 banks included: The First (1791–1811) and Second 8 (1816–1836) Banks of the United States, President 9 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 3339 IH Lincoln’s national banking system, and President 1 Franklin Delano Roosevelt’s Reconstruction Finance 2 Corporation (1932–1957). 3 (2) These national banks were enacted with 4 broad bi-partisan support, and financed the con- 5 struction of: roads, turnpikes, bridges, and canals; 6 the Transcontinental Railroad; the Hoover Dam; 7 rural electrification; manufacturing start-ups; and 8 rail, school, and farm improvements in every corner 9 of our country. Investments created the conditions 10 for improved productivity, economic growth, and job 11 creation; helped lift us out of the Great Depression; 12 and contributed to our victory in World War II. 13 (3) The American Society of Civil Engineers 14 (hereinafter referred to as ‘‘ASCE’’), in its 2021 Re- 15 port Card and Failure to Act Series, estimates that 16 $6,109,000,000,000 is needed over the next ten 17 years (2020–2029) to meet all of our country’s in- 18 frastructure needs. Of that amount, 19 $3,483,000,000,000 is expected to be financed by: 20 the Federal government through its normal budget 21 appropriations process; and by States, counties, cit- 22 ies, utilities, and port and airport authorities 23 through their general revenues, special taxes, user 24 fees, and borrowing. Even with this spending, how- 25 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 3339 IH ever, a financing gap of $2,626,000,000,000 re- 1 mains. To close this gap, our nation will need to in- 2 crease investment, by all levels of government, from 3 2.5 percent to 3.5 percent of GDP by 2025. 4 (4) ASCE estimates that the added 5 $2,626,000,000,000 needed over a ten year period to 6 bring systems up to a state of good repair is as fol- 7 lows (amounts in parentheses): 8 (A) Roads, bridges, and transit 9 ($1,035,000,000,000). 10 (B) Drinking water, wastewater, and 11 stormwater systems ($801,000,000,000). 12 (C) Schools ($250,000,000,000). 13 (D) Electricity generation, transmission, 14 distribution ($197,000,000,000). 15 (E) Aviation ($111,000,000,000). 16 (F) Dams, levees, inland waterways, and 17 ports ($109,000,000,000). 18 (G) Passenger rail ($45,000,000,000). 19 (H) Public parks and recreation 20 ($78,000,000,000). 21 (5) Expanded investment of at least 22 $2,374,000,000,000 is needed for— 23 (A) new affordable housing; a 9,000 mile 24 high speed rail network; 25 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 3339 IH (B) affordable and complete broadband ac- 1 cess; 2 (C) major water projects; 3 (D) science and technology drivers; 4 (E) to accommodate population growth 5 and save on energy use; and 6 (F) improvements in rural, urban, and low- 7 income areas that the private sector is not cur- 8 rently serving. 9 (6) Although Federal grant programs, along 10 with matching State and local funding, should con- 11 tinue to play a coordinating role in financing infra- 12 structure in the United States, current and foresee- 13 able demands on existing Federal, State, and local 14 budgets exceed the resources to support these pro- 15 grams by a wide margin. In addition, a severe eco- 16 nomic downturn in 2020, resulting in significant un- 17 employment, business losses, and public budget defi- 18 cits, has placed further limits on infrastructure 19 spending. 20 (7) The establishment of a United States public 21 deposit money bank would provide direct loans and 22 other financing of up to $5,000,000,000,000 for 23 qualifying infrastructure projects without requiring 24 additional Federal taxes or deficits. Such funding 25 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 3339 IH would be adequate to finance all of the United 1 States’ unfunded infrastructure needs, in all parts of 2 the country, according to well-developed strategic 3 plans. At the same time, it would return the United 4 States to its most recent ‘‘golden age’’ when a Na- 5 tional Infrastructure Bank was in place (1933– 6 1957), during which time total factor productivity 7 advanced by 3.5 percent per year, the economy grew 8 on average 5.5 percent per year, income inequality 9 fell by one-third, and Federal and State tax receipts 10 rose dramatically. 11 TITLE I—REVENUE PROVISIONS 12 SEC. 101. TREATMENT OF NATIONAL INFRASTRUCTURE 13 BANK AS A GOVERNMENT CORPORATION EX- 14 EMPT FROM TAX. 15 (a) IN GENERAL.—Section 501(l) of the Internal 16 Revenue Code of 1986 is amended by adding at the end 17 the following new paragraph: 18 ‘‘(5) The National Infrastructure Bank estab- 19 lished under title II of the National Infrastructure 20 Bank Act of 2021.’’. 21 (b) EFFECTIVE DATE.—The amendment made by 22 this section shall apply to taxable years ending after the 23 date of the enactment of this Act. 24 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 3339 IH SEC. 102. TREATMENT OF CONTRIBUTIONS TO THE NA- 1 TIONAL INFRASTRUCTURE BANK AS CHARI- 2 TABLE CONTRIBUTIONS. 3 (a) IN GENERAL.—Section 170(c) of the Internal 4 Revenue Code of 1986 is amended by inserting after para- 5 graph (5) the following new paragraph: 6 ‘‘(6) The National Infrastructure Bank estab- 7 lished under title II of the National Infrastructure 8 Bank Act of 2021.’’. 9 (b) APPLICATION OF PERCENTAGE LIMITATION.— 10 Section 170(b)(1)(A) of such Code is amended by striking 11 ‘‘or’’ at the end of clause (viii), by inserting ‘‘or’’ at the 12 end of clause (ix), and by inserting after clause (ix) the 13 following new clause: 14 ‘‘(x) the National Infrastructure Bank 15 referred to in subsection (c)(6),’’. 16 (c) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to taxable years ending after the 18 date of the enactment of this Act. 19 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 3339 IH SEC. 103. TEMPORARY RULE TO ALLOW A DEDUCTION FOR 1 CASH CONTRIBUTIONS TO THE NATIONAL IN- 2 FRASTRUCTURE BANK BY CERTAIN TAX- 3 PAYERS WHO DO NOT ELECT TO ITEMIZE DE- 4 DUCTIONS. 5 (a) IN GENERAL.—Section 170(p) of the Internal 6 Revenue Code of 1986 is amended by adding at the end 7 the following flush sentence: 8 ‘‘The $300 or $600 dollar limitation otherwise in effect 9 under the preceding sentence with respect to any taxpayer 10 for any taxable year shall be increased by the amount of 11 contributions made in cash by such taxpayer during such 12 taxable year (determined without regard to subsections 13 (b)(1)(G)(ii) and (d)(1)) to the National Infrastructure 14 Bank referred to in subsection (c)(6).’’. 15 (b) EFFECTIVE DATE.—The amendments made by 16 this section shall apply to taxable years ending after the 17 date of the enactment of this Act. 18 SEC. 104. PREFERRED DIVIDENDS OF NATIONAL INFRA- 19 STRUCTURE BANK EXCLUDIBLE FROM GROSS 20 INCOME. 21 (a) IN GENERAL.—Part III of subchapter B of chap- 22 ter 1 of the Internal Revenue Code of 1986 is amended 23 by inserting after section 139I the following new section: 24 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 3339 IH ‘‘SEC. 139J. PREFERRED DIVIDENDS OF NATIONAL INFRA- 1 STRUCTURE BANK. 2 ‘‘Gross income shall not include any amount received 3 as a dividend on preferred stock of the National Infra- 4 structure Bank pursuant to section 203(c) of the National 5 Infrastructure Bank Act of 2021 (as in effect on the date 6 of the enactment of this section).’’. 7 (b) CLERICAL AMEDMENT.—The table of sections of 8 such part is amended by inserting after the item relating 9 to section 139I the following new item: 10 ‘‘Sec. 139J. Preferred dividends of National Infrastructure Bank.’’. (c) EFFECTIVE DATE.—The amendments made by 11 this section shall apply to taxable years ending after the 12 date of the enactment of this Act. 13 TITLE II—ESTABLISHMENT OF 14 NATIONAL INFRASTRUCTURE 15 BANK 16 SEC. 201. DEFINITIONS. 17 For purposes of this title, the following definitions 18 apply unless otherwise specified in this title: 19 (1) BANK.—The term ‘‘Bank’’ means the Na- 20 tional Infrastructure Bank established under section 21 202(a). 22 (2) BLENDED FINANCING.—The term ‘‘blended 23 financing’’ means financing provided through any 24 combination of loans or bond financing, in coopera- 25 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 3339 IH tion with private lenders or State revolving funds, 1 that is integrated into a single agreement with a sin- 2 gle set of financial terms. 3 (3) BOARD.—The term ‘‘Board’’ means the Na- 4 tional Infrastructure Bank Board. 5 (4) BOND.—The terms ‘‘Bond’’ means any 6 bond issued in accordance with this Act if— 7 (A) the proceeds from the sale of the bond 8 are to be used for expenditures incurred after 9 the date of issuance with respect to any infra- 10 structure project or other purpose, subject to 11 such rules as the Bank may provide; 12 (B) the bond is issued in registered form; 13 (C) the bond has such terms, and carries 14 interest in such an amount, as determined by 15 the Bank; and 16 (D) payments of interest and principal 17 with respect to the bond is the obligation of the 18 Bank, and is backed by the full faith and credit 19 of the United States. 20 (5) CHIEF ASSET AND LIABILITY MANAGEMENT 21 OFFICER.—The term ‘‘chief asset and liability man- 22 agement officer’’ means the chief individual respon- 23 sible for coordinating the management of assets and 24 liabilities of the Bank. 25 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 3339 IH (6) CHIEF COMPLIANCE OFFICER.—The terms 1 ‘‘chief compliance officer’’ and ‘‘CCO’’ mean the 2 chief individual responsible for overseeing and man- 3 aging the compliance and regulatory affairs of the 4 Bank. 5 (7) CHIEF EXECUTIVE OFFICER.—The terms 6 ‘‘chief executive officer’’ and ‘‘CEO’’ mean the indi- 7 vidual serving as the executive director of the Bank. 8 (8) CHIEF FINANCIAL OFFICER.—The terms 9 ‘‘chief financial officer’’ and ‘‘CFO’’ mean the chief 10 individual responsible for managing the financial 11 risks, planning, and reporting of the Bank. 12 (9) CHIEF LOAN ORIGINATION OFFICER.—The 13 term ‘‘chief loan origination officer’’ means the chief 14 individual responsible for managing the processing 15 of new loans provided by the Bank. 16 (10) CHIEF OPERATIONS OFFICER.—The terms 17 ‘‘chief operations officer’’ and ‘‘COO’’ mean the 18 chief individual responsible for the retail operations 19 of the Bank and its branches, including its adminis- 20 trative, human resource, and information technology 21 systems. 22 (11) CHIEF RISK OFFICER.—The terms ‘‘chief 23 risk officer’’ and ‘‘CRO’’ mean the chief individual 24 VerDate Sep 11 2014 02:51 Jul 02, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3339.IH H3339 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 3339 IH responsible for managing operational and compli- 1 ance-related risks of the Bank [Text truncated for display. Full text available on Congress.gov.]