LIFT Act

Sponsor: Terri A. Sewell (Democratic-AL)May 15, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Helps local governments fund infrastructure projects and ensures fair wages for workers.

This bill would create a new way for local governments to pay for roads, bridges, and other public works. It would give them a direct payment credit for issuing special "American infrastructure bonds." The bill would also ensure that workers on these projects get paid fair wages and make it easier for financial institutions to invest in local government bonds.

What Would Change

Today, there is no direct payment credit for local governments issuing infrastructure bonds. Financial institutions can only deduct interest expenses for up to $10 million in tax-exempt bonds from small issuers. If this bill becomes law, local governments would get a direct payment from the Treasury for a percentage of interest on new infrastructure bonds (starting at 42%). Financial institutions would be able to deduct interest expenses for up to $30 million in tax-exempt bonds from small issuers, with this amount adjusting for inflation.

Key Provisions

Provides a direct payment from the U.S. Treasury to local governments for interest on new "American infrastructure bonds."
Requires projects funded by these bonds to pay workers prevailing wages under the Davis-Bacon Act.
Increases the amount of tax-exempt bonds from small governments that financial institutions can hold without losing certain tax benefits, from $10 million to $30 million.
Adjusts this $30 million limit for inflation each year starting in 2027.
Lets state and local governments refinance existing bonds more easily to potentially save money.

View on Congress.gov

HR 8864 · 119th Congress · May 15, 2026 · AI Summary by gemini-2.5-flash · 8/10

LIFT Act

What Would Change

Key Provisions

Lobbying Activity