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.