Bullet Summary of the National Infrastructure Bank

Bullet Summary of the National Infrastructure Bank (NIB):
Pathway out of the Second Great Depression
Last Updated July 15, 2020

House Bill HR 6422 to create a $4 trillion National Infrastructure Bank 

Expected Benefits:
  • Rebuilds Crumbing Infrastructure Across America: less traffic congestion and CO2 pollution; lead-free water; new schools, affordable housing, mass transit, broadband, electricity grids; enough funding for every single state.
  • Workers: creates 25 million new jobs, paying union-level wages; re-hires from among the 40 million Americans now unemployed; provides training in permanent, new, construction occupations. Reduces income inequality. Stimulates union membership.
  • Engineers/Contractors/Suppliers: lots more business from all this new construction.
  • Other Businesses: more productive and profitable; trucks move faster; more consumer demand.
  • Economy: Ensures Coronavirus Recession is V-shaped (instead of L-shaped); pushes up long-term growth from 1.8%/year, to 5%/year.
  • Federal and State Revenues: Stimulated by Economic Growth; reduces deficits as % of GDP.

Expected Costs:
  • Requires no new Federal Debt or new Taxes. No other Infrastructure or Jobs Proposal is Budget Neutral like this one.
  • Very small appropriation to start, after which NIB earns its own way.
  • Loan rate: of 2%/year is the most affordable. Loan length = infrastructure’s lifetime.
  • Flexible loan repayment: States, counties, cities, utilities, authorities, and cooperatives can repay loans out of general revenues, special revenues, or user fees. 

How The NIB Works:

  • Created: as a government-owned, depository/lending bank. Independent, with full disclosures.
  • Capitalized: with existing, privately-owned Treasuries (same method as four NIBs in our nation’s past); Treasuries exchanged for preferred stock paying an extra 2%.
  • Lends: the same as any commercial bank, up to a total of $4 trillion, creating an equal deposit as each loan is approved.
  • Well-targeted infrastructure project selection: with maximum input from States and Regional Economic Accelerator Planning Groups.
  • Loan Monitoring: Ensures projects stay on track, and all groups benefit fairly.
  • NIB earns up to $80 billion/year: used to pay overhead, dividend to Government; and finance a built-in Loan Subsidy Program.

How You Can Help:

Write or call your Member of Congress today, and ask him/her to co-Sponsor HR 6422, the National Infrastructure Bank Act of 2020, to create great-paying jobs in your area.

Download the Bullet Summary as a PDF file in order to see a table of projects with an estimate of the funding that will be available per project.


Download Bullet Summary as PDF
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