National Infrastructure Bank Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 4052 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 JUNE 13, 2023 Mr. DAVIS of Illinois introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Transportation and Infrastructure, Financial Serv- ices, Education and the Workforce, 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 jurisdiction 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 2023’’. 5 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 4052 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. 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. Relations with local financial institutions. Sec. 216. Audits; reports to President and Congress. Sec. 217. Budgetary effects. Sec. 218. 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 Lincoln’s national banking system, and President 10 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 4052 IH Franklin Delano Roosevelt’s Reconstruction Finance 1 Corporation (1932–1957). 2 (2) These national banks were enacted with 3 broad bi-partisan support, and financed the con- 4 struction of: roads, turnpikes, bridges, and canals; 5 the Transcontinental Railroad; the Hoover Dam; 6 rural electrification; manufacturing start-ups; and 7 rail, school, and farm improvements in every corner 8 of our country. Investments created the conditions 9 for improved productivity, economic growth, and job 10 creation; helped lift us out of the Great Depression; 11 and contributed to our victory in World War II. 12 (3) The American Society of Civil Engineers 13 (hereinafter referred to as ‘‘ASCE’’), in its 2021 Re- 14 port Card and Failure to Act Series, estimates that 15 $6,109,000,000,000 (expressed in 2019 dollars) is 16 needed over the next ten years (2020–2029) to meet 17 all of our country’s infrastructure needs. Of that 18 amount, $3,483,000,000,000 is expected to be fi- 19 nanced by: the Federal government through its nor- 20 mal budget appropriations process; and by States, 21 counties, cities, utilities, and port and airport au- 22 thorities through their general revenues, special 23 taxes, user fees, and borrowing. Even with this 24 spending, however, a financing gap of 25 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 4052 IH $2,626,000,000,000 remains. To close this gap, our 1 nation will need to increase investment, by all levels 2 of government, from 2.5 percent to 3.5 percent of 3 GDP by 2025. 4 (4) ASCE further estimates that the added 5 $2,626,000,000,000 (expressed in 2019 dollars) 6 needed over a ten-year period to bring systems up 7 to a state of good repair is broken out as follows 8 (amounts in parentheses): 9 (A) Roads, bridges, and transit 10 ($1,035,000,000,000). 11 (B) Drinking water, wastewater, and 12 stormwater systems ($801,000,000,000). 13 (C) Schools ($250,000,000,000). 14 (D) Electricity generation, transmission, 15 and distribution ($197,000,000,000). 16 (E) Aviation ($111,000,000,000). 17 (F) Dams, levees, inland waterways, and 18 ports ($109,000,000,000). 19 (G) Passenger rail ($45,000,000,000). 20 (H) Public parks and recreation 21 ($78,000,000,000). 22 (5) Expanded investment of at least 23 $2,374,000,000,000 (expressed in 2019 dollars) is 24 also needed for— 25 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 4052 IH (A) new affordable housing 1 ($720,000,000,000); 2 (B) a 17,000-mile high-speed rail network 3 ($1,074,000,000,000); 4 (C) affordable and complete broadband ac- 5 cess ($100,000,000,000); 6 (D) major water supply projects 7 ($400,000,000,000); 8 (E) a new grid overlay to transport renew- 9 able energy ($80,000,000,000); and 10 (F) incorporated in each of the categories 11 described in subparagraphs (A) through (E): 12 science and technology drivers; accommodation 13 of population growth; energy savings; and im- 14 provements in rural, urban, and low-income 15 areas that the public and private sectors are not 16 currently serving. 17 (6) Although Federal grant programs, along 18 with matching State and local funding, should con- 19 tinue to play a coordinating role in financing infra- 20 structure in the United States, current and foresee- 21 able demands on existing Federal, State, and local 22 budgets exceed the resources to support these pro- 23 grams by a wide margin. In addition, a sharp bout 24 of inflation in 2021–2022, and postponement of a 25 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 4052 IH robust 10-year spending plan to 2024–2033, re- 1 quires a 40-percent increase above real costs to en- 2 sure adequate funding in nominal dollars. 3 (7) The establishment of a United States public 4 deposit money bank would provide direct loans and 5 other financing of up to $5,000,000,000,000 for 6 qualifying infrastructure projects without requiring 7 additional Federal taxes or deficits. Such funding 8 would be adequate to finance all of the United 9 States’ unfunded infrastructure needs, in all parts of 10 the country, according to well-developed strategic 11 plans. At the same time, it would return the United 12 States to its most recent ‘‘golden age’’ when a Na- 13 tional Infrastructure Bank was in place (1933– 14 1957), during which time total factor productivity 15 advanced by 3.5 percent per year, the economy grew 16 on average 5.5 percent per year, income inequality 17 fell by one-third, and Federal and State tax receipts 18 rose dramatically. 19 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 4052 IH TITLE I—REVENUE PROVISIONS 1 SEC. 101. TREATMENT OF NATIONAL INFRASTRUCTURE 2 BANK AS A GOVERNMENT CORPORATION EX- 3 EMPT FROM TAX. 4 (a) IN GENERAL.—Section 501(l) of the Internal 5 Revenue Code of 1986 is amended by adding at the end 6 the following new paragraph: 7 ‘‘(5) The National Infrastructure Bank estab- 8 lished under title II of the National Infrastructure 9 Bank Act of 2023.’’. 10 (b) EFFECTIVE DATE.—The amendment made by 11 this section shall apply to taxable years ending after the 12 date of the enactment of this Act. 13 SEC. 102. TREATMENT OF CONTRIBUTIONS TO THE NA- 14 TIONAL INFRASTRUCTURE BANK AS CHARI- 15 TABLE CONTRIBUTIONS. 16 (a) IN GENERAL.—Section 170(c) of the Internal 17 Revenue Code of 1986 is amended by inserting after para- 18 graph (5) the following new paragraph: 19 ‘‘(6) The National Infrastructure Bank estab- 20 lished under title II of the National Infrastructure 21 Bank Act of 2023.’’. 22 (b) APPLICATION OF PERCENTAGE LIMITATION.— 23 Section 170(b)(1)(A) of such Code is amended by striking 24 ‘‘or’’ at the end of clause (viii), by inserting ‘‘or’’ at the 25 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 4052 IH end of clause (ix), and by inserting after clause (ix) the 1 following new clause: 2 ‘‘(x) the National Infrastructure Bank 3 referred to in subsection (c)(6),’’. 4 (c) EFFECTIVE DATE.—The amendments made by 5 this section shall apply to taxable years ending after the 6 date of the enactment of this Act. 7 SEC. 103. PREFERRED DIVIDENDS OF NATIONAL INFRA- 8 STRUCTURE BANK EXCLUDIBLE FROM GROSS 9 INCOME. 10 (a) IN GENERAL.—Part III of subchapter B of chap- 11 ter 1 of the Internal Revenue Code of 1986 is amended 12 by inserting after section 139I the following new section: 13 ‘‘SEC. 139J. PREFERRED DIVIDENDS OF NATIONAL INFRA- 14 STRUCTURE BANK. 15 ‘‘Gross income shall not include any amount received 16 as a dividend on preferred stock of the National Infra- 17 structure Bank pursuant to section 203(c) of the National 18 Infrastructure Bank Act of 2023 (as in effect on the date 19 of the enactment of this section).’’. 20 (b) CLERICAL AMENDMENT.—The table of sections 21 of such part is amended by inserting after the item relat- 22 ing to section 139I the following new item: 23 ‘‘Sec. 139J. Preferred dividends of National Infrastructure Bank.’’. VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6211 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 4052 IH (c) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years ending after the 2 date of the enactment of this Act. 3 TITLE II—ESTABLISHMENT OF 4 NATIONAL INFRASTRUCTURE 5 BANK 6 SEC. 201. DEFINITIONS. 7 For purposes of this title, the following definitions 8 apply unless otherwise specified in this title: 9 (1) AFFORDABLE HOUSING.—The term ‘‘afford- 10 able housing’’ means housing that would cost an in- 11 dividual or family no more than one-third of monthly 12 income, and which is available to individuals or fam- 13 ilies earning 40 percent or less than the average me- 14 dian income in their area. 15 (2) BANK.—The term ‘‘Bank’’ means the Na- 16 tional Infrastructure Bank established under section 17 202(a). 18 (3) BLENDED FINANCING.—The term ‘‘blended 19 financing’’ means financing provided through any 20 combination of loans or bond financing, in coopera- 21 tion with private lenders or State revolving funds, 22 that is integrated into a single agreement with a sin- 23 gle set of financial terms. 24 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 4052 IH (4) BOARD.—The term ‘‘Board’’ means the Na- 1 tional Infrastructure Bank Board. 2 (5) BOND.—The term ‘‘Bond’’ means any bond 3 issued in accordance with this Act if— 4 (A) the proceeds from the sale of the bond 5 are to be used for expenditures incurred after 6 the date of issuance with respect to any infra- 7 structure project or other purpose, subject to 8 such rules as the Bank may provide; 9 (B) the bond is issued in registered form; 10 (C) the bond has such terms, and carries 11 interest in such an amount, as determined by 12 the Bank; and 13 (D) payments of interest and principal 14 with respect to the bond is the obligation of the 15 Bank, and is backed by the full faith and credit 16 of the United States. 17 (6) CHIEF ASSET AND LIABILITY MANAGEMENT 18 OFFICER.—The term ‘‘chief asset and liability man- 19 agement officer’’ means the chief individual respon- 20 sible for coordinating the management of assets and 21 liabilities of the Bank. 22 (7) CHIEF COMPLIANCE OFFICER.—The terms 23 ‘‘chief compliance officer’’ and ‘‘CCO’’ mean the 24 chief individual responsible for overseeing and man- 25 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 4052 IH aging the compliance and regulatory affairs of the 1 Bank. 2 (8) CHIEF EXECUTIVE OFFICER.—The terms 3 ‘‘chief executive officer’’ and ‘‘CEO’’ mean the indi- 4 vidual serving as the executive director of the Bank. 5 (9) CHIEF FINANCIAL OFFICER.—The terms 6 ‘‘chief financial officer’’ and ‘‘CFO’’ mean the chief 7 individual responsible for managing the financial 8 risks, planning, and reporting of the Bank. 9 (10) CHIEF LOAN ORIGINATION OFFICER.—The 10 term ‘‘chief loan origination officer’’ means the chief 11 individual responsible for managing the processing 12 of new loans provided by the Bank. 13 (11) CHIEF OPERATIONS OFFICER.—The terms 14 ‘‘chief operations officer’’ and ‘‘COO’’ mean the 15 chief individual responsible for the retail operations 16 of the Bank and its branches, including its adminis- 17 trative, human resource, and information technology 18 systems. 19 (12) CHIEF RISK OFFICER.—The terms ‘‘chief 20 risk officer’’ and ‘‘CRO’’ mean the chief individual 21 responsible for managing operational and compli- 22 ance-related risks of the Bank. 23 (13) CHIEF TREASURY OFFICER.—The term 24 ‘‘chief treasury officer’’ means the chief individual 25 VerDate Sep 11 2014 01:38 Jul 14, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4052.IH H4052 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 4052 IH responsible for managing the Bank’s treasury oper- 1 ations. 2 (14) COMMUNITY DEVELOPMENT INFRASTRUC- 3 TURE PROJECT.—The term ‘‘community develop- 4 me [Text truncated for display. 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