The Obama administration is making up to $17 billion available for transportation infrastructure project loans, thanks to a provision in the new transportation law, the Department of Transportation announced.
Under federal highway legislation signed into law by President Obama earlier this month, $1.75 billion is available over the next two years for the Transportation Infrastructure Finance and Innovation Act program.
A wide range of projects is eligible for TIFIA financing, such as highways, bridges, tunnels and transit.
Since each dollar of funding can be used for about $10 in loans, DOT will soon make $17 billion available for loans, loan guarantees and lines of credit.
“TIFIA offers flexible terms and gives many qualified, large-scale projects the extra boost they need to break ground and put people back to work,” Transportation Secretary Ray LaHood told reporters July 27. “This is a sign that in a time of fiscal austerity, we can still do big things.”
Through additional leveraging, the money could lead to up to $50 billion in infrastructure investment, LaHood said, adding that it is the largest infrastructure loan program in DOT history.
TIFIA started in 2008 and had $120 million of funding in the most recent year. The program has been used in 27 projects so far, where DOT has used $9.2 billion to leverage more than $36.4 billion in funding.
