Transportation Credit Program Releases Funds for Infrastructure Projects
WASHINGTON – U.S. Transportation Secretary Anthony Foxx today announced the availability of credit assistance for critical infrastructure projects across the country through the Transportation Infrastructure Finance and Innovation Act (TIFIA) program. Secretary Foxx encouraged states and cities across the country to submit letters of interest for direct loans, loan guarantees, and standby lines of credit through TIFIA as a result of the recently enacted Fixing America’s Surface Transportation Act (FAST Act).
“The TIFIA credit program has a strong record of success in stimulating local economies and bringing critical transportation projects to communities that need them,” said U.S. Transportation Secretary Anthony Foxx. “This year, the added flexibility and streamlined review process should make it easier for a variety of applicants to take advantage of the funding opportunities, and to bring significant infrastructure developments to their neighborhoods.”
The FAST Act authorizes $1.435 billion in capital over five years for the TIFIA credit assistance program. Historically, one dollar of TIFIA Program funds supported a TIFIA loan of approximately 14 dollars and resulted in infrastructure investment of up to 40 dollars, when taking into account other state, local and private sector investments.
A wide range of surface transportation infrastructure is eligible for TIFIA credit assistance, including highways, passenger and freight rail, public transit, intermodal freight facilities, and international bridges and tunnels. The FAST Act expands eligibility to include transit-oriented development and the capitalization of a rural projects fund within a state infrastructure bank.
In addition, for eligible small projects, the FAST Act allows TIFIA to reserve funding to offset the fees charged to applicants by TIFIA for financial and legal services. Because of the flexibility provided by the TIFIA programs, many qualified, small-scale and large-scale projects that might otherwise be delayed or shelved can move forward quickly, providing an immediate boost to jobs while laying a foundation for continued economic growth.
To date, the TIFIA program has provided $22.7 billion in credit assistance to support more than $82.5 billion in transportation infrastructure investments to help build 56 major transportation projects around the country. Updated information regarding TIFIA’s loan portfolio is available here.
DOT’s Build America Transportation Investment Center (BATIC), which was announced in 2014, has expanded TIFIA’s ability to meet the needs of the nation’s transportation system. BATIC serves as a single point of contact and coordination for states, municipalities, and project sponsors looking to utilize federal transportation expertise, apply for federal transportation credit programs, and explore ways to access private capital in public private partnerships (P3s). Since BATIC’s formation, DOT has closed over $8 billion in financing to support $21 billion in projects.
BATIC has also increased the number of non-traditional DOT credit program applicants, most significantly TIFIA-eligible inside-the-gate port projects. BATIC has facilitated interdepartmental coordination for mega-projects that need to access multiple DOT credit programs. It is also providing project finance capacity building resources for states and municipalities in conjunction with the BATIC Institute: An AASHTO Center for Excellence, which includes best practices papers, a P3 case study webinar series, and peer to peer exchanges on finance and development.