The term "innovative finance" for transportation describes techniques that supplement traditional highway financing methods. While many of these techniques may be well tested in other areas, their application to transportation is innovative.
Historically, FHWA has financed highways through grants that generally fund up to 80 percent of project costs. Since this approach alone has not met the nation's transportation investment needs, U.S. DOT's innovative finance initiatives are needed to supplement the traditional grant program.
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