A proposal to auction off distressed federal government assets, like loans, to fund infrastructure and other policy priorities is gaining fresh interest as former President Donald Trump prepares to return to the White House. During Trump’s first term, a bipartisan group of congressmen, including Rep. Mike Kelly (R-PA) and then-Reps. Ted Budd (R-NC) and William Lacy Clay (D-MO), introduced the Generating American Income and Infrastructure Act, or GAIIN Act. This plan received endorsement from Trump, as reported in an interview with Breitbart News in 2018. However, the initiative lost momentum when Trump faced impeachment proceedings, causing bipartisan efforts to falter.
With Trump poised to re-enter the White House alongside a broad working-class coalition, the proposal is receiving renewed consideration from influential Congress members and key figures in Washington. Since 2018, the original supporters of the idea have seen significant career advancements. Kelly now chairs a subcommittee on the tax-writing House Ways and Means Committee, and Budd has become a U.S. Senator. Interest in the proposal extends beyond its original backers, with top lawmakers expressing support.
The renewed focus on this proposal extends its scope beyond the initial idea of selling distressed U.S. Department of Agriculture (USDA) loans and assets. It now encompasses the entire federal government. An analysis by Andy Koenig, who served in Trump’s White House, estimates that this revenue-generating strategy could yield over a trillion dollars for the government. This approach draws on historical precedent: Ronald Reagan employed a similar method in 1986 under the Omnibus Budget Reconciliation Act to raise funds.
Koenig’s analysis reveals that the federal government is owed $1.9 trillion in outstanding loans, along with $87 billion in defaulted loan guarantees. The analysis identifies at least 120 federal lending programs managed by 15 different agencies. Koenig suggests that policymakers could require federal agencies to sell these loans to private buyers, potentially generating up to $1 trillion in deficit relief over a decade. This strategy would prioritize distressed assets, reducing federal involvement in lending markets and allowing agencies to focus on their core missions.
In 2018, the GAIIN Act garnered bipartisan support from both staunch Republicans and Democrats, including Rep. Frederica Wilson (D-FL) and then-Rep. Sheila Jackson Lee (D-TX). The act aimed to use funds from selling distressed USDA assets to support infrastructure in working-class districts nationwide. Analyses by Washington insiders highlight that areas needing the most assistance are often represented by members of congressional districts from the Congressional Black and Hispanic Caucus on the Democrat side and the House Freedom Caucus and Anti-Woke Caucus on the Republican side.
Sam Geduldig, a GOP mega-lobbyist, has long championed this broader effort to shift power and funding from elites to the working class. Geduldig co-founded the firm United By Interest with top Democrat lobbyists to bridge partisan divides and restore power balance. He attributes the renewed interest in the GAIIN Act’s revenue-raising model to Trump’s success with Black and Hispanic voters in the 2024 presidential election. Geduldig emphasizes that the act could quickly address economic concerns for these voters.
Several top Republicans in Congress have shown interest in making this proposal a priority in Trump’s agenda. House Majority Whip Tom Emmer expressed willingness to consider innovative solutions to fund the Trump working-class agenda. Emmer highlighted the Republican mandate to address reckless spending, tackle debt, and revive the economy. Newly-elected Sen. Jim Banks (R-IN), formerly a leader in the House’s Anti-Woke Caucus, is also enthusiastic about the proposal, viewing it as a means to spur development and create jobs without increasing the deficit.
Ja’Ron Smith, a partner at Geduldig’s lobbying firm, previously ran “Opportunity Zones” policy for Trump. He now works with an outside group linked to Sen. Tim Scott (R-SC), who supports expanding the success of Opportunity Zones. Scott, the new National Republican Senatorial Committee (NRSC) chairman, expressed eagerness to explore ways to build upon these initiatives and ensure economic benefits reach those most in need.
The 2025 effort is expected to gain bipartisan support, potentially more expansive than the 2018 attempt. Although Wilson is the only original Democrat co-sponsor from the 2018 GAIIN Act to return to Congress, interest in the proposal remains strong. The potential for collaboration across party lines offers a promising path to address infrastructure needs and economic opportunities for working-class Americans.
