U.S. Transportation Secretary Pete Buttigieg announced on Tuesday that the U.S. Department of Transportation's (USDOT) Build America Bureau will offer low-cost and flexible financing for transit and Transit-oriented Development (TOD) projects at the maximum level authorized under law.
According to a press release, USDOT’s Transportation Infrastructure Finance and Innovation Act (TIFIA) program is designed to help project sponsors reduce costs and speed the delivery of infrastructure projects, which saves taxpayer dollars and improves transportation in communities. This new initiative, “TIFIA 49,” authorizes borrowing up to 49% of eligible project costs for projects that meet certain eligibility requirements, helping more projects get off the ground.
“There are countless promising transportation projects with the potential to better connect people to housing, jobs, schools, and more – but that never get off the ground because of a lack of financing,” said U.S. Transportation Secretary Pete Buttigieg. “The Department of Transportation has long offered flexible, low-cost financing to help bring some of those ideas to life, and now, with TIFIA 49, we’ll be able to support more of them than ever, and lower costs for taxpayers.”
“With its significant lending capacity, USDOT can play an integral role in supporting projects that make our transportation system more accessible, resilient and sustainable,” said Build America Bureau Executive Director Morteza Farajian. “The Bureau team is ready to partner with project sponsors on effective and efficient concepts, provide technical assistance on innovative approaches, and support them through the loan approval process.”
Until now, the only projects eligible for financing of up to 49% included rural projects, as well as INFRA, Mega and Rural Grant “Extra” projects, which are highly-rated projects that were not granted discretionary funds due to limited resources.
The Bureau will conduct regular data-based assessments of the initiative’s effectiveness through Key Performance Indicators (KPIs) and will make changes as appropriate. In addition to financing, the Bureau also provides technical assistance for project sponsors and plans to expand outreach and technical assistance capabilities to assist project sponsors to take full advantage of this initiative.
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Source: USDOT
