NEW ORLEANS – Louisiana’s new State Infrastructure Bank, created through House Bill 1157, is designed to give the state and local governments a new financing tool for major transportation and infrastructure projects through loans and other financial assistance instead of relying solely on traditional annual appropriations.
Business Groups Back Infrastructure Bank
Economic development organizations and business groups support the concept because faster infrastructure delivery can improve freight movement, industrial development, workforce access and long-term economic competitiveness.
“GNO, Inc. co-led the creation of this new financing tool with the Office of the Governor,” said Michael Hecht, CEO of GNO, Inc. in a statement. “Joining a small number of other states in the USA, Louisiana will now have a public-private ‘bank’ to provide gap financing for large infrastructure projects, such as roads and bridges, as well as funding for rural communities that would otherwise be strapped for cash.”
The bill was authored by Rep. Ryan Bourriaque and passed unanimously in both chambers before being signed into law by Gov. Jeff Landry on May 29. It becomes effective July 1, 2026.
Startup Funding Still Needed
The law creates the framework for the bank, but it does not yet provide major startup funding. According to the Legislative Fiscal Office, the infrastructure fund will still require legislative appropriations, federal capitalization or other deposits before loans can begin flowing at scale.
Supporters expect the initial funding to likely come from a mix of state surplus or capital outlay money, federal infrastructure dollars and potentially bond proceeds or federal loan programs.
Once funded, the model is supposed to sustain itself partly through loan repayments and interest, similar to a revolving loan fund.
Bank to Operate Within Governor’s Office
The new Infrastructure Bank will operate within the governor’s office and provide low-interest loans, revolving credit assistance, bonding and debt support for transportation-related infrastructure projects such as highways, rail, roads and bridges.
The fund can also finance preliminary engineering, permitting, right-of-way acquisition, construction management and related project costs.
The Infrastructure Bank is intended to let Louisiana combine state money, federal infrastructure programs and loan repayments into a revolving financing system that can continue funding future projects over time.
