WASHINGTON, D.C. – U.S. Reps. Daniel Webster, R-Fla., Dan Meuser, R-Pa., Tom Reed, R-Corning, and Doug LaMalfa, R-Calif., recently introduced H.R. 7231, the Infrastructure Bank for America Act of 2020, a bill, to support wholesale lending to infrastructure projects through state and local governments, state infrastructure banks and private entities.

As a government-sponsored enterprise, the Infrastructure Bank for America would have access to lower cost of funds, a benefit passed to state and municipal borrowers, used to support all infrastructure projects including a minimum of 7 percent for necessary rural project investment.

“We care about supporting communities across the country who have long lacked access to the capital needed to upgrade aging infrastructure. By facilitating unique public/private partnerships at the state and local level, the Infrastructure Bank for American will unlock a wave of investments in critical projects that will boost economic growth and improve livelihoods,” Reed said.

The bank, structured similarly to the Federal Home Loan Bank System, encourages private investment through tax incentives for those investments during the first three years of IBA operation. This approach differs from prior Infrastructure Bank proposals in the sense that it will be entirely capitalized by private investment. Infrastructure banks have successfully complemented existing funding programs across the world, including U.S. state infrastructure banks.

The Infrastructure Bank for America could support industries and projects critical to the structure, growth and resurgence of the U.S. economy. IBA investments are not limited and can help finance surface transportation projects, electric grid security, broadband connectivity, the revitalization of Main Street USA, and more.