American Infrastructure Bank
A self-financing public bank that funds $5 trillion in infrastructure and affordable housing — without raising taxes, without new borrowing — while adding 25 million jobs and boosting real GDP by 3%.
+3%
Increase in Real GDP
25M
High-paying jobs added
$3.7T
Non-Housing
Infrastructure
investment
$1.3T
Affordable housing funded
$5 Trillion for America's Future
Infrastructure Investment
$3.7 trillionThe AIB funds at far-below-market rates $3.7 trillion of necessary infrastructure projects as identified by the American Society of Civil Engineers — roads, bridges, water systems, broadband, and more that have been deferred for decades.
Affordable Housing
$1.3 trillionThe AIB funds at far-below-market rates $1.3 trillion of affordable housing — addressing one of the most acute crises facing working families in Delaware and across the nation.
The Financial Concept Behind the AIB
Do not tax. Do not borrow.
The Treasury Department opens an infrastructure bank, repurposes $500 billion of preexisting public debt, uses that repurposed $500 billion as capital, and lends out $10 for every $1 in capital at 2% interest. This is the same fractional-reserve lending principle that private banks use every day — put to work for the American people instead. The AIB is a variation on successful American precedents, such as Presidents Hoover's and Roosevelt's Reconstruction Finance Corporation and the Washington Administration's central bank.
Repurpose $500B of existing debt as capital
No new taxes. No new borrowing. The Treasury repurposes $500 billion of preexisting public debt as the bank's founding capital base.
Lend $10 for every $1 in capital
Using the same leverage principle as private banks, the AIB lends out $10 for every $1 of capital — at 2% interest — generating $5 trillion in total lending capacity.
Treasury continues paying — and increases — interest
Treasury not only continues to pay interest on the repurposed $500 billion but increases that payment by 2%, ensuring bondholders are made whole and then some.
Treasury turns a profit
The 2% interest collected on $5 trillion in loans exceeds the cost of servicing the repurposed debt. Treasury makes a profit — on top of all the economic benefits the AIB generates.
Substantiation & Sources
Substantiation: The NIB Model
For substantiation that the AIB would boost real GDP by 3% and add 25 million jobs, see NIBcoalition.com. The AIB uses the same financial concept as the National Infrastructure Bank (NIB). The AIB would not, however, underwrite the NIB's wasteful "global warming" projects — it stays focused on the infrastructure and housing needs that directly benefit working Americans.
Bonus Element of the American Prosperity Plan
The state-owned Bank of North Dakota (BND), established in 1919, has been a blessing for North Dakotans. If facsimiles of the BND were set up in Delaware and in other congressional districts, and if a modest infusion of additional repurposed, preexisting federal debt capitalized these facsimiles, then the work and lending power of the AIB could be increased still more.
Build America Again
The American Infrastructure Bank is a proven financial model that creates jobs, rebuilds our nation, and turns a profit — all without raising taxes. Help Dr. Joe bring it to Congress.