The bank would pool money from the federal government and private investors and lending it to transportation projects deemed worthy by experts.

President of the Association of Equipment Manufacturers Dennis Slater congratulated President Obama for recognising the importance of the Administration and Congress working in partnership to pass a transportation reauthorisation bill, addressing longstanding safety and quality issues, and creating employment.

Mr Slater said “Investing in the rebuilding and modernisation of US roads, railways, runways and transit systems is a strategy that Democrats and Republicans alike should be clamoring to support.

“While the President’s plan for an infrastructure bank and increased capacity in our infrastructure system is an important step, Congress has the opportunity to act now on transportation reauthorisation that will result in immediate job creation. We need a strategic vision for modernising our country’s infrastructure, and leaders with the courage to make it happen.”