The Transportation Infrastructure Finance and Innovation Act (TIFIA) is a U.S. federal government program run through the U.S. Department of Transportation to provides credit assistance for qualified regional and national surface transportation projects in the United States. Projects include highways, city passenger railways, some freight rail, intermodal freight transfer facilities, and some port terminal projects.[1][2]
.svg) | |
| Long title | Title I Subtitle E of the Transportation Equity Act for the 21st Century |
|---|---|
| Acronyms (colloquial) | TIFIA |
| Enacted by | the 105th United States Congress |
| Citations | |
| Public law | Pub. L. 105–178 (text) (PDF) |
| Legislative history | |
| |
The program was reauthorized in the FAST Act, a bill passed by the 114th U.S. Congress in 2015.[2]
Cost
editFederal authorizations per year are:[2]
| Fiscal year | Authorization |
|---|---|
| 2016 | $275,000,000 |
| 2017 | $275,000,000 |
| 2018 | $285,000,000 |
| 2019 | $300,000,000 |
| 2020 | $300,000,000 |
History
editTIFIA was passed by Congress in 1998 as part of the Transportation Equity Act for the 21st Century (TEA-21, P.L. 105-78), with the goal of leveraging federal dollars and attract private and non-federal capital into transportation infrastructure.[3][4]
How it works
editThe TIFIA (Transportation Infrastructure Finance and Innovation Act) program aims to provide credit support for major transportation projects. It is run by the U.S. Department of Transportation’s (DOT) Office of Innovative Program Delivery. The program provides "loans, loan guarantees, and lines of credit to qualified public or private borrowers, including state governments, private firms, special authorities, local governments, transportation improvement districts, or a consortium these entities, such as public‐private partnerships."[3]
Projects must be greater than $50 million to qualify and can range from a variety of things like highways, bridges, railroads, transit etc. Those eligible to apply are state and local governments, transit agencies, railroad companies, as well as private entities.[1] The program offers:[3]
- A 35-year fixed rate loan for up to 33 percent of the cost of the project
- Non-variable interest rates
- Deferral payment options of up to five years after completion of the project
- Ongoing debt service
Some benefits of TIFIA include:[1]
- TIFIA's fixed interest rates can often be more affordable than other private market rates.
- TIFIA offers deferred payments so companies can generate revenue from their projects before having to repay debts.
- TIFIA offers a variety of assistance (direct loans, loan guarantees, and lines of credit).
- TIFIA's loan is backed by the full faith and credit of the federal government making it a secure loan.
Influence
edit
The TIFIA has served as a model for other types of development projects. For example, in 2016, North America's Building Trades Unions (NABTU) publicly called on President Obama to adopt a major infrastructure investment program. NABTU has also recommended an increase in investments in nuclear power and the implementation of an Energy Infrastructure Finance and Innovation program based on the Transportation Infrastructure Finance and Innovation Act.[6]
Congress has also used the TIFIA program as a model for other initiatives. A notable example is the Water Infrastructure Finance and Innovation Act (WIFIA) program, administered by the Environmental Protection Agency and the Army Corps of Engineers.[7]Additionally, the first TIFIA-funded project supporting Transit-Oriented Development was approved in 2024.[8]
As of 2017, TIFIA has provided loans for a total of 64 projects since authorization.[9]
References
edit- ^ a b c "TIFIA - Department of Transportation". United States Department of Transportation. Retrieved 2016-11-23.
- ^ a b c "Transportation Infrastructure Finance and Innovation Act (TIFIA) - FAST Act Fact Sheets - FHWA". Federal Highway Administration (FHWA). Retrieved 2016-11-23.
- ^ a b c "Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan Program: Program Expansion Must Not Erode Taxpayer Protections". Taxpayers for Common Sense. 2011-10-27. Retrieved 2016-11-23.
- ^ 2016 TIFIA Report to Congress | Build America (transportation.gov)
- ^ "President George Bush Turnpike Western Extension". United States Department of Transportation. Retrieved October 29, 2024.
- ^ Rozens, Tracy (2016-10-13). "North America's Building Trades Unions: Pipeline project delays hurt economic growth - Daily Energy Insider". Daily Energy Insider. Retrieved 2016-11-23.
- ^ The Transportation Infrastructure Finance and Innovation Act (TIFIA) Program (congress.gov)
- ^ "U.S. Department of Transportation Announces Closing of First Loan to Support Transit-Oriented Development". U.S. Department of Transportation. 2024-05-01. Retrieved 2024-10-24.
- ^ "- THE USE OF TIFIA AND INNOVATIVE FINANCING IN IMPROVING INFRASTRUCTURE TO ENHANCE SAFETY, MOBILITY, AND ECONOMIC OPPORTUNITY". www.govinfo.gov. Retrieved 2024-09-26.