TEA-21 - Transportation Equity Act for the 21st Century Moving Americans into the 21st Century
	Fact Sheet
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TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT
Year	1997	1998	1999	2000	2001	2002	2003
Authorization	0	0	$80M	$90M	$110M	$120M	$130M
Max. Nominal Amount of Credit	0	0	$1,600M	$1,800M	2,200M	$2,400M	$2,600M

Program Purpose

The Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA) will provide Federal credit assistance to major transportation investments of critical national importance, such as intermodal facilities, border crossing infrastructure, expansion of multi-State highway trade corridors, and other investments with regional and national benefits. The TIFIA credit program is designed to fill market gaps and leverage substantial private co-investment by providing supplemental and subordinate capital. [1503]

Program Products

The TIFIA credit program consists of three distinct types of financial assistance (product lines), designed to address projects’ varying requirements throughout their life cycles:

• Secured loans are direct Federal loans to project sponsors offering flexible repayment terms and providing combined construction and permanent financing of capital costs.

• Loan guarantees provide full-faith-and-credit guarantees by the Federal government to institutional investors such as pension funds which make loans for projects.

• Standby lines of credit represent secondary sources of funding in the form of contingent Federal loans that may be drawn upon to supplement project revenues, if needed, during the first 10 years of project operations.

The amount of Federal credit assistance may not exceed 33 percent of total project costs. [1503]

Funding

A total of $530 million of contract authority is provided to pay the "subsidy cost" of supporting Federal credit under TIFIA, that is, to cover projected losses. Annual caps totaling $10.6 billion limit the nominal amount of credit instruments issued. [1503, TRA 9007]

Eligible Activities

Any type of project that is eligible for Federal assistance through surface transportation programs under Title 23 or chapter 53 of Title 49 U.S.C. (highway projects and transit capital projects) is eligible for the TIFIA credit program. In addition, the following types of projects are eligible: international bridges and tunnels; inter-city passenger bus and rail facilities and vehicles (including Amtrak and magnetic levitation systems); and publicly owned intermodal freight transfer facilities (except seaports or airports) on or adjacent to the National Highway System. [1503]

Each project must meet certain objectively measurable threshold criteria to qualify: it must cost at least $100M million or 50% of the State’s annual apportionment of Federal-aid funds, whichever is less. (For intelligent transportation system projects, the minimum cost is $30M.) The project also must be supported in whole or in part from user charges or other non-Federal dedicated funding sources and be included in the State’s transportation plan. [1503]

Qualified projects meeting the initial threshold eligibility criteria will be evaluated by the Secretary and selected based on the extent to which they generate economic benefits, leverage private capital, promote innovative technologies, and meet other program objectives. Each project must receive an investment grade rating on its senior debt obligations before its Federal credit assistance may be fullyfunded. [1503]

September 14, 1998