Written by Matthew Cole.

Imagine this: The government is sitting on a mountain of IOUs—outstanding loans that haven’t been paid back. Instead of letting that debt collect dust, why not sell it off to private investors and use the money to fix crumbling roads, build schools, and create jobs in struggling communities? That’s the core idea behind the Generating American Income and Infrastructure Act, or GAIIN Act. It’s not just an economic proposal; it’s a populist pitch aimed at shifting the balance of power and wealth from Washington’s elite to the working class.

Originally introduced in 2018, the plan fizzled out when partisan bickering overtook bipartisan priorities. But with Trump set to return to the White House, the GAIIN Act has found new life. Its champions believe this policy could pump over $1.1 trillion into the economy, cut the deficit, and revitalize communities left behind by the coastal elites.

What’s in the GAIIN Act?

The GAIIN Act starts with a simple idea: The federal government owns nearly $2 trillion in loans. That includes everything from unpaid USDA loans to defaulted loan guarantees. Instead of waiting for borrowers to pay up (or default entirely), the government could sell these debts to private buyers.

Picture it this way: If the government were a landlord with a bunch of tenants behind on rent, it could sell the rental agreements to a private company. That company might have better tools to collect the money, while the landlord (the government) walks away with a lump sum of cash.

According to Andy Koenig, a former Trump administration official who analyzed this plan, selling off these distressed assets could generate $1 trillion over a decade. Koenig argues that focusing on loans unlikely to be repaid, such as defaulted debt, would also clean up the government’s financial books. This way, agencies could focus on their core missions instead of acting like banks.

And here’s the kicker: The money raised wouldn’t just disappear into the black hole of federal spending. It would be earmarked for projects that directly benefit working-class Americans—think better infrastructure in rural areas and urban neighborhoods that have been ignored for decades.

A History Lesson in Selling Assets

If this all sounds a little too good to be true, consider this: It’s been done before. Back in 1986, President Ronald Reagan signed a law that used a similar strategy to raise funds. It worked then, and proponents of the GAIIN Act believe it can work now—especially when paired with Trump’s populist agenda.

The bipartisan support for the plan in 2018 came from an unlikely alliance of lawmakers. Conservatives like Rep. Mike Kelly and Sen. Ted Budd backed it, but so did progressive voices like Reps. Frederica Wilson and Sheila Jackson Lee. Why? Because the money raised was targeted toward communities that needed it most, from low-income urban districts to struggling rural areas.

Now, with Trump building a new coalition of working-class voters across racial and geographic lines, the GAIIN Act is getting another shot. And this time, its scope is even bigger. Lawmakers are considering applying the same approach to all federal lending programs, not just USDA loans.

Why It Matters to You

Let’s break this down to real-life terms. Imagine you’re living in a small town where the local bridge has been closed for years because it’s unsafe. The nearest hospital is an hour’s drive, and your kids’ school still uses textbooks from the ‘90s. These problems aren’t just annoying—they’re life-altering.

The GAIIN Act promises to change that. By selling off loans the government can’t collect anyway, lawmakers could fund these critical projects without raising your taxes. It’s a win-win: The government gets cash to invest in communities, and private buyers get the chance to collect on debts that might otherwise go unpaid.

Take East Palestine, Ohio, as an example—a small town devastated by a train derailment. Infrastructure repairs and community support there could be funded by GAIIN Act revenue. Similarly, urban areas like the Bronx, New York, where job opportunities are scarce, could see economic growth thanks to targeted investments.

Critics argue this plan could put government responsibilities in the hands of private companies. But proponents counter that the private sector is often better equipped to manage risk and recover funds. Plus, it would free up federal agencies to focus on their primary missions, like food safety and disaster relief, instead of chasing down overdue debts.

Bipartisan Appeal in a Divided Washington

What’s interesting about the GAIIN Act is its potential to unite lawmakers who rarely agree on anything. Both Republicans and Democrats represent working-class districts that could benefit from this influx of cash.

Sam Geduldig, a GOP lobbyist and longtime advocate for working-class policies, sees the GAIIN Act as a way to bridge the partisan divide. He’s part of a bipartisan effort called United By Interest, which works to shift the focus of government spending from elites to everyday Americans.

According to Geduldig, Trump’s success in building a multiracial, working-class coalition in 2024 proves there’s demand for policies like the GAIIN Act. “From East Palestine, Ohio, to the Bronx, New York, a working-class coalition of voters decided to send a seismic message to Washington, DC,” Geduldig said. “The GAIIN Act is the legislative proposal that can most quickly reward those voters for trusting that Trump and Republican majorities will fix their very real economic concerns.”

Republican leaders like Sen. Jim Banks and House Majority Whip Tom Emmer are on board. Banks sees the plan as a way to create jobs and spur development without adding to the national debt. Emmer, meanwhile, believes the proposal aligns with the GOP’s mandate to rein in spending while supporting working-class priorities.

On the Democrat side, figures like Frederica Wilson have shown interest in reviving the bipartisan spirit of the original 2018 effort. Lobbyists like Mike Williams, who co-founded United By Interest with Geduldig, are pushing for renewed support from Democrats who represent underserved communities.

Our Take

While the GAIIN Act might seem like a no-brainer on paper, it raises some serious concerns. Selling off government loans to private companies shifts risk and responsibility away from federal agencies, but at what cost? Will private buyers prioritize profit over fairness?

There’s also the question of whether this plan truly addresses the root causes of economic inequality. Selling off debt provides a short-term cash injection, but it doesn’t solve systemic issues like underfunded schools or decaying infrastructure.

That said, the proposal’s focus on helping working-class communities is admirable. For too long, Washington has ignored the needs of everyday Americans in favor of policies that benefit the elite. The GAIIN Act is a bold attempt to flip that script, but it needs careful oversight to ensure it doesn’t just create new problems while solving old ones.

From a conservative perspective, this plan is both an opportunity and a risk. It aligns with values like fiscal responsibility and empowering the private sector, but it must be executed carefully to avoid pitfalls. If done right, the GAIIN Act could be a game-changer for working-class Americans.