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Tools & Programs:
Federal Debt Financing Tools

Other Bonding and Debt Instruments

Overview

USDOT and FHWA participate in the application of many other bonding and debt instrument tools used to finance surface transportation projects. A large number of these are tax-exempt municipal debt instruments issued and regulated at the state and local level. In addition, nonprofit organizations or public benefit corporations can act as conduit issuers of tax-exempt debt on behalf of a private partner. The AASHTO Center for Excellence in Project Finance provides comprehensive coverage of these types of bonding tools.

At the Federal level, Build America Bonds (BABs) are a new form of tax credit bonds available to surface transportation projects administered by the Treasury Department.