U.S. DOT Enacts ARTBA Recommendation, Removing TIFIA “Roadblock”

What happened: The U.S. Department of Transportation (DOT) July 7 announced a policy modification intended to incentivize greater use of the Transportation Infrastructure Finance and Innovation Act (TIFIA) credit assistance program. Sponsors for a wider range of projects can now finance up to 49 percent of their cost through TIFIA. In the news release detailing the change, Transportation Secretary Sean Duffy called the previous policy, which capped TIFIA participation in most projects at 33 percent, a "roadblock" to project development.

Why it matters: Dating back to 1998, TIFIA is a congressionally-authorized loan and loan guarantee program that helps facilitate transportation projects - often involving private-sector partners - through credit assistance incorporating more advantageous terms. According to Dr. Morteza Farajian, who administers the program through DOT's Build America Bureau, TIFIA has leveraged $52 billion in loans to support delivery of more than $150 billion in infrastructure investment.

In its recommendations for the next surface transportation reauthorization bill due in September 2026, ARTBA called on Congress and the Trump administration to include the change to 49 percent TIFIA participation. While helping enhance DOT's profile as a "lender of choice" for project sponsors, the revised policy will, in turn, free up other grants and funding resources for surface transportation improvements not eligible for TIFIA.

Sec. Duffy cited "feedback from our partners" as contributing to his department's policy change.

What's next: TIFIA will be a prominent topic at ARTBA's 37^th Annual Public Private Partnerships in Transportation Conference, taking place July 15-17 in Washington, D.C. Registration remains open for those interested in discussing project development strategies with federal, state and local transportation officials, as well as fellow practitioners from around the country.