TIFIA 49 Initiative for Transit and Transit-Oriented Development
TIFIA 49 Allows Extra Financing for Transit and Transit-Oriented Development Projects
Read the news release!
Secretary of Transportation Pete Buttigieg has approved transit and public transit-oriented development (TOD) projects to receive the maximum federal loan level authorized under law. The Transportation Infrastructure Finance and Innovation Act (TIFIA) program is designed to close funding gaps with low-cost, long-term financing and speed the delivery of infrastructure projects, which saves taxpayer dollars and improves transportation systems in communities.
TIFIA 49 authorizes borrowing of up to 49 percent of eligible project costs for projects that meet eligibility requirements, helping advance the Biden-Harris Administration’s goals. With few exceptions, TIFIA loans have historically been capped at 33 percent of eligible project costs.
Currently, the Bureau offers rural projects and INFRA, Mega and Rural Grant “Extra” projects (highly rated projects through the grant programs that were not funded due to limited resources) financing up to 49 percent.
Sponsors of projects that include the activities listed below are eligible to apply for loans up to 49 percent of project costs under the TIFIA 49 initiative:
• Transit projects are those eligible for assistance under Chapter 53 of Title 49, U.S. Code and includes capital projects or associated improvement infrastructure or vehicles for public transportation systems, including but not limited to bus, subway, light rail, commuter rail, trolley, or ferry.
TOD projects are those eligible for assistance under 23 U.S.C. § 601(a)(12)(E), and include improving or building public infrastructure that is either (1) located within walking distance (approximately 1/2-mile) of, and accessible to, a fixed guideway transit facility, passenger rail station, intercity bus station, or intermodal facility, including transportation, public utility, or joint development projects, and related infrastructure; or (2) for economic development, including commercial and residential development, and related infrastructure and activities (a) that incorporate private investment; (b) that are physically or functionally related to a passenger rail station or multimodal station that includes rail service; (c) for which the project sponsors have a high probability of commencing the contracting process for construction not later than 90 days after the date on which credit assistance under the TIFIA program is provided for the projects; and (d) that have a high probability of reducing the need for financial assistance under any other Federal program for the relevant passenger train station or service by increasing ridership, tenant lease payments, or other activities that generate revenue exceeding costs.
The Bureau will conduct regular data-based assessments of the initiative’s effectiveness through Key Performance Indicators (KPIs) and will make changes as appropriate.
Questions? Please take a look at these Questions and Answers.
Contact the Bureau at BuildAmerica@dot.gov to discuss possible project financing.