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Federal Credit for Infrastructure Bonds: Government Pays 28% of Interest.

This Act creates a new financing tool called "American Infrastructure Bonds" to fund public projects by state and local governments. The federal government will directly pay the issuer 28% of the interest due on these bonds, significantly lowering borrowing costs for infrastructure development. However, investors purchasing these specific bonds must include the interest earned in their federal taxable income.
Key points
The federal government subsidizes infrastructure projects by covering 28% of the interest payments made by state and local governments on new bonds.
Investors who purchase these new infrastructure bonds must pay federal income tax on the interest they receive, unlike traditional tax-exempt municipal bonds.
The measure aims to accelerate public works projects (like roads and schools) by making financing cheaper for local authorities.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1480
Sponsor: Sen. Wicker, Roger F. [R-MS]
Process start date: 2025-04-10
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

American Infrastructure Bonds Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1480.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-04-10.

What are the main provisions?

Key points include:

  • The federal government subsidizes infrastructure projects by covering 28% of the interest payments made by state and local governments on new bonds.
  • Investors who purchase these new infrastructure bonds must pay federal income tax on the interest they receive, unlike traditional tax-exempt municipal bonds.
  • The measure aims to accelerate public works projects (like roads and schools) by making financing cheaper for local authorities.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Wicker, Roger F. [R-MS].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Taxes Public Investments