States and cities have been invited to submit letters of interest to apply for credit assistance for critical infrastructure projects through the Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program, the U.S. Department of Transportation (USDOT) announced March 11.
TIFIA provides direct loans, loan guarantees and standby lines of credit for a broad range of infrastructure projects, including highways, passenger and freight rail, public transit, intermodal freight facilities, and international bridges and tunnels. The Fixing America’s Surface Transportation (FAST) Act, which President Obama signed into law Dec. 4, extends this assistance to cover transit-oriented development projects and the capitalization of rural project funds within state infrastructure banks, explained USDOT.
The FAST Act authorized $1.4 billion in capital over five years for the TIFIA program. The law decreased new TIFIA funding levels by more than 70 percent, from an average of $1 billion per year under the previous transportation funding act, to an average of $287 million per year through fiscal year 2020.
Historically, each dollar of TIFIA program funds has supported a TIFIA loan of about $14 and led to infrastructure investment of up to $40 when other state, local and private investments are taken into account, USDOT said.
To date, the $22.7 billion in TIFIA credit assistance has led to $82.5 billion worth of investments in transportation infrastructure, helping to build 56 major transportation projects nationwide.
Letters of interest will be considered on a rolling basis and project sponsors will be invited to apply for TIFIA assistance once a favorable eligibility determination is made, said USDOT.
The TIFIA notice of funding availability, which contains information about eligibility and other requirements and other details, including the letter of interest submission and application processes, was published in the March 11 issue of the Federal Register.
A session on the FAST Act and its implications for a broad range of P3 projects will be held during NCPPP’s Federal P3 Summit, March 17-18 in Washington, D.C. For more information and to register, visit the event website.