Revisiting a proposal he has offered in previous budget years, President Obama’s FY13 budget asks Congress to allocate $10 billion to fund an “independent, non-partisan National Infrastructure Bank (NIB).” The bank would offer low-cost loans to large-scale transportation, water, and energy infrastructure projects that meet “rigorous economic, technical and environmental standards.” Funding offered by the NIB would supplement, rather than replace, existing federal assistance for these projects (such as through the DW and CW SRFs).
Notably, this year’s plan would establish the NIB as an independent agency that would select projects for funding based in part on “geographic, sector, and size considerations.” The administration had previously suggested creating the NIB under the U.S. Department of
Transportation, so this year’s request would theoretically give water and wastewater projects a better chance to compete for funding against higher-profile transportation proposals. But given the current budget environment and the lack of enthusiasm for new spending on Capitol Hill, the NIB is not expected to gain traction in Congress this year.