WeVote
Log In

Bill

Bill

HB 1157

TRANSPORTATION DEPT: Provides for funding to certain entities for infrastructure related projects within the Department of Transportation and Development (EN SEE FISC NOTE SD EX)

2026 Regular Session Introduced by Ryan Bourriaque and 1 co-sponsor

Louisiana creates the State Infrastructure Bank to finance public infrastructure projects via revolving loans, supported by a dedicated Fund with four accounts.

Effective date: 07/01/2026.
0
WeVote Research Nonpartisan
Bill Summary · HB 1157

Summary of HB 1157 (Louisiana, 2026)

Purpose and intent

  • Establishes the Louisiana State Infrastructure Bank (LSIB) within the Office of the Governor.
  • Creates a dedicated Louisiana State Infrastructure Fund with separate accounts to support financing for infrastructure projects.
  • Enables a revolving loan/credit program that would provide loans and other financial assistance for eligible infrastructure projects, leveraging federal and private capital.
  • Aims to supplement traditional grants by providing financing tools to accelerate transportation-related investments and improve resilience, access, and economic development.

Key provisions and changes

Creation and structure

  • Adds the Louisiana State Infrastructure Bank (the “Bank”) as a revolving loan/credit program that administers federal and state funds, but does not provide grants.
  • Establishes the Louisiana State Infrastructure Fund in the state treasury, with four dedicated accounts:
    • Highway Account
    • Transit Account
    • Rail Account
    • State-Funded Account
  • Requires repayment of loans and credits, with revenues credited to the appropriate accounts. Unexpended funds remain in the Fund.

Governance and oversight

  • Creates a Board of Directors for the Bank, consisting of six members:
    • Director of the Office of Rural Development (or designee)
    • Chair of the Joint Legislative Committee on the Budget (or designee)
    • Secretary of DOTD (or designee)
    • Secretary of Louisiana Economic Development (or designee)
    • One member (from three nominees by the Louisiana Bankers Association with significant lending/investment experience)
    • One member (from the State Board of Certified Public Accountants with substantial accounting/auditing experience)
  • Board terms are three years; bylaws and Open Meetings compliance; staff support from the Governor’s Office, with potential interagency agreements for specialist review and coordination.
  • Requires annual reporting to the governor and legislature (by Sept. 1) and annual independent financial audits.
  • Requires approval by the State Bond Commission for certain actions (issuing debt, guarantees, or debt-like structures).

Bank operations and eligibility

  • Defines core terms: eligible costs, eligible infrastructure projects, financing agreements, financial assistance, loans, project revenues, and qualified borrowers (public entities or private partners with appropriate public sponsorship and secured by the bank).
  • Specifies funding sources and permissible uses aligned with Title 23 (Highway) and Title 49 (Transit and Rail) of the U.S. Code, with State-Funded Account available for other public infrastructure costs.
  • Establishes evaluation criteria for project selection: feasibility, readiness, public benefit, risk, repaymentability, and other funding commitments; priority for rural/underserved areas.

Financial terms and risk management

  • Interest terms: loans may be at market or below-market rates; flexible repayment terms; up to 30-year maximum loan term (subject to federal law for federal accounts).
  • Security: pledges of project revenues, dedicated taxes, availability payments, or other permitted security.
  • Default remedies include legal action, state-withholding of funds, and drawing on reserves or credit facilities.
  • Bank cannot take deposits from the public, compete with private banks, or provide consumer/commercial banking services; its purpose is public infrastructure financing.

Effective date

  • Effective July 1, 2026.

Implications and potential impact

  • Creates a new financing vehicle to accelerate infrastructure investment by public entities and eligible private partners.
  • Provides a structured, revolving funding mechanism to invest in highways, transit, rail, and other public infrastructure, potentially reducing reliance on grants alone.
  • Introduces governance and reporting requirements intended to ensure accountability and legislative oversight.
  • Requires coordination with DOTD, Treasury, LED, and rural development programs to support underwriting, technical review, and program coordination.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.