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U.S. Department of Transportation Announces $1.33 Billion Loan for Sound Transit’s Link Light Rail Extension from Seattle to Redmond

Friday, January 16, 2015

WASHINGTON – U.S. Transportation Secretary Anthony Foxx today announced a $1.33 billion loan to Central Puget Sound Regional Transit Authority (Sound Transit) for construction of the East Link Light Rail Extension Project.  The Transportation Infrastructure Finance and Innovation Act (TIFIA) loan will expand the popular Link system serving the Puget Sound region and help Sound Transit implement a voter approved regional capital improvement plan.

“The East Link Project will give the people in Seattle area better access to jobs, education, and other opportunities,” said Secretary Foxx. “This project will have a significant impact on the entire region and expand a world class transit system.  We want to bring these opportunities to other parts of the country, working with Congress to develop a sustainable, long-term funding solution for transit, roads, bridges and other crucial infrastructure.”

The 14.5-mile light rail extension, one element of a 50-mile system, will connect some of the region’s most populated and fastest-growing areas to Sound Transit’s existing rail system at the International District/Chinatown Station, which runs from downtown Seattle to SeaTac Airport.  According to Sound Transit, extending light rail in this corridor is expected to create 40,000 jobs in construction and future economic development, as well as increase access to growing software and biotech industries in the greater metropolitan area.

“This project demonstrates the great things that can happen when federal, state, and local partners work together to make critical transportation infrastructure investments,” said Sylvia Garcia, DOT Chief Financial Officer and Assistant Secretary for Budget and Programs.

In addition to the $1.33 billion TIFIA loan, DOT is contributing $74.7 million in Federal Transit Administration (FTA) funds and $14 million in TIGER V funds toward the $4 billion East Link Project. Construction is expected to begin later in 2015, with a targeted opening date of 2023. The new line is expected to serve approximately 50,000 daily riders by 2030.

“Rapid and reliable public transit is a gateway to greater opportunity, and this project will make a huge difference for residents traveling to major destinations such as downtown Seattle, SeaTac Airport and the University of Washington,” said FTA Acting Administrator Therese McMillan. “Seattle continues to lead by example, bringing more 21st century transportation options to the Puget Sound region’s growing population.”

The Obama Administration has proposed the GROW AMERICA Act, which provides a national vision for an aging transportation network and a growing population. The GROW AMERICA Act would increase investments in public transportation to meet the urgent transit challenges facing urban, suburban and rural communities, in addition to providing support for TIFIA that can offer innovative financial assistance for infrastructure projects.

The TIFIA credit program is designed to fill market gaps and leverage substantial non-federal investments. Each dollar of federal funding can provide up to $10 in TIFIA credit assistance and support up to $30 in transportation infrastructure investment. Since its launch, the TIFIA program has helped 48 projects turn more than $21 billion in U.S. Department of Transportation assistance into nearly $76 billion in infrastructure investment across America.

DOT 05-15