The U.S. Department of Transportation announced an update to the Transportation Infrastructure Finance and Innovation Act (TIFIA) that will allow all types of transportation infrastructure projects to finance costs through the legislation.
The policy change would allow all types of TIFIA projects to finance up to 49 percent of eligible costs. Currently, only limited kinds of projects are allowed to finance up to 49 percent, while most are capped at up to 33 percent. The caps and limits present a roadblock for many projects, Secretary of Transportation Sean Duffy said.
“Unleashing the full value of the TIFIA program represents another step forward in getting America building again,” Duffy said. “It’s common sense to allow all eligible projects the same access to our low-interest financing opportunities. We are building infrastructure easier, quicker, and cheaper. This update is the result of extensive analysis, successful pilot programs, and listening to feedback from our partners.”
As part of the Build American Bureau, the TIFIA credit program provides flexible, long-term, low-interest loans for public and private project sponsors of infrastructure projects. The TIFIA loans lower financing costs and must be repaid using non-Federal funding. The DOT said that in 2012, it was permissible by law to finance up to 49 percent of reasonably anticipated eligible project costs, but the policy of limiting loans to up to 33 percent continued.
“The TIFIA loan program has proven to be a highly effective tool, supporting the delivery of more than $150 billion in infrastructure investment through over $52 billion in flexible, low-cost loans. This policy update will ensure the program remains available at full capacity to support our private and local partners,” Build America Bureau Executive Director Morteza Farajian said. “We’re very pleased to announce more progress in modernizing this critical financing program that has already helped so many communities get the infrastructure they want for less money. By removing unnecessary barriers after careful analysis, we’re helping to open the door for every type of project to receive the same benefits and level of support from this administration.”