National Infrastructure Act

National Infrastructure Act - Establishes in the Treasury the National Infrastructure Fund. Authorizes appropriations for each of FY 1986 through 1995. Directs amounts in the Fund to be made available to the Secretary of the Treasury to make interest-free repayable grants to States. Establishes within the Fund a separate account to be known as the Sinking Fund Account for deposits by States of grant obligations. Requires the Secretary to invest amounts in the Account in interest-bearing obligations of the United States. Requires the Secretary to maintain separate records of funds in the Account with respect to each grant made under this Act. Requires the Secretary to report annually to the Congress from FY 1987 through 2016 on the financial condition of the Account.

Entitles each State to repayable grants, according to a specified population ratio, for FY 1986 through 1995. Specifies terms for payments to States by the Secretary and repayments by States to the Secretary of such grants. Allows the Secretary to adjust the amount of any payment if deemed necessary.

Allows States 20 years for repayment of grants, with adjustments made to the Account for each State at such time.

Sets forth qualifications for States receiving such grants, including: (1) a contractual agreement by the State that it will establish an infrastructure revolving fund in its treasury to deposit and maintain records of grants received and make interest-free loans to various departments and agencies within the State; (2) terms and length of repayment; (3) specified uses to which grant funds may be applied; and (4) specified prohibited uses of grant funds.

Requires a State to make available to the Secretary and the Comptroller General for inspection such records as either may require.

Requires annual independent financial audits of grant-participating States to determine compliance with this Act. Allows States to waive such audit requirement in specified circumstances. Allows the Secretary to waive such audit requirement in certain cases. Requires any audits done to be made available to the public within 30 days after being received by the Secretary. Directs the Comptroller General to review the activities of the Secretary and the States to determine compliance under this Act.

Requires a State making an interest-free loan under this Act to hold at least one public hearing on the proposed loan, with adequate notice to the public.

Requires the Secretary, before June 2 of each year ending before January 1, 1997, to report to the Congress on: (1) the status and operation of the Fund during the prior fiscal year; (2) the amounts made available for each such purpose during the prior fiscal year; and (3) the administration of this Act. Requires, at the end of each fiscal year for which repayable grants are made under this Act, each State government receiving such a grant to submit a report to the Secretary on the amount, purposes, and uses of such grant.

Requires the Secretary to determine population (used as a statistic in awarding grants) on the same basis that the Secretary of Commerce determines resident population for general statistical purposes. Requires the Secretary to use population estimates provided by the Secretary of Commerce to determine amounts of repayable grants for each fiscal year.