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Background Reference

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(Last Updated: December 2012)

TIFIA Credit Program Overview

TIFIA Transportation Infrastructure Finance logo

Transportation Infrastructure Finance and Innovation Act (TIFIA)

Background on TIFIA

  • Strategic goal - to leverage limited Federal resources and stimulate private capital investment in transportation infrastructure by providing credit assistance in the form of direct loans, loan guarantees, and standby lines of credit (rather than grants) to projects of national or regional significance. On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP–21) was signed into law, providing for substantial changes in the TIFIA credit program.
  • Key objectives
    • Facilitate projects with significant public benefits
    • Encourage new revenue streams and private participation
    • Fill capital market gaps for secondary/subordinate capital
    • Be a flexible, "patient" investor willing to take on investor concerns about investment horizon, liquidity, predictability and risk
    • Limit Federal exposure by relying on market discipline
  • Major requirements
    • Large surface transportation projects ($50M generally, $15M for intelligent transportation systems (ITS), $25M for rural infrastructure projects)
    • TIFIA contribution is limited to 49 percent of total eligible project costs for a TIFIA secured loan and 33 percent for a TIFIA standby line of credit
    • Senior debt must be rated investment grade by two rating agencies, unless project cost is less than $75M
    • Dedicated revenues for repayment
    • Applicable Federal requirements, including but not limited to Civil Rights, NEPA, Uniform Relocation, Titles 23 and 49
    • Public or private highway, transit, rail and port projects are eligible to apply for TIFIA assistance
  • Application process - applicants must submit detailed letters of interest so DOT can evaluate creditworthiness and other eligibility requirements and, after invitation from the TIFIA Joint Program Office (JPO), a formal application.

Eligible TIFIA Applicants and Projects

Applicants Projects
State Governments
Private Firms
Special Authorities
Local Governments
Transportation Improvement Districts

Highways and Bridges
Intelligent Transportation Systems
Intermodal Connectors
Transit Vehicles and Facilities
Intercity Buses and Facilities
Freight Transfer Facilities
Passenger Rail Vehicles and Facilities
Rural Infrastructure Projects

Eligibility Requirements

  1. Creditworthiness:
    1. Ability to satisfy applicable creditworthiness standards
    2. Rate covenant, if applicable
    3. Adequate coverage requirements to ensure repayment
    4. Ability to obtain investment grade ratings on senior debt
  2. Foster partnerships that attract public and private investment for the project
  3. Ability to proceed at an earlier date or reduced lifecycle costs (including debt service costs)
  4. Reduces Contribution of Federal Grant Assistance for the Project
  5. Construction contracting process can commence no more than 90 days from execution of a TIFIA credit instrument

Program Implementation: Selection & Funding of a TIFIA Project

Program Implementation: Selection & Funding of a TIFIA Project

  1. Applicant Submits Letter of Interest on a Rolling Basis; Provides Follow-up Information; If Requested, Pays Fees and Provides Preliminary Ratings
  2. After Invitation from DOT, Applicant Prepares and Submits Application to the DOT; Applicant may be asked for Oral Presentation
  3. DOT Staff Prepare Evaluation and Make Recommendation to DOT Credit Council
  4. DOT Credit Council Provides Recommendations to the Secretary, who Selects Projects to Receive TIFIA Credit Assistance
  5. DOT Notifies Project Sponsor Regarding Project Approval Within 90 Days of Receiving the Application
  6. DOT Issues Term Sheet, Executes Credit Agreement, and Disburses and Obligates Funds

TIFIA Documentation Requirements

TIFIA Documentation Requirements
  • Letter of interest provided (Applications, Approvals, and Funding)
  • Preliminary rating opinion letter obtained (Major Requirements)
  • Draft EIS circulated (or Categorical Exclusion or FONSI obtained) (Major Requirements)
  • Project consistent with state transportation plan and, if applicable, included in metropolitan transportation plan
  • Application Submitted (Applications, Approvals, and Funding)
  • ROD obtained (Major Requirements)
  • Project Included in STIP (Major Requirements)
  • Project selection made (Applications, Approvals, and Funding)
  • Term sheet issued (Applications, Approvals, and Funding)
  • Funding obligated (Applications, Approvals, and Funding)
  • Investment-grade rating on senior debt submitted prior to anticipated closing date (Major Requirements)
  • Credit agreement executed (Applications, Approvals, and Funding)
  • Funds disbursed according to terms (Applications, Approvals, and Funding)

TIFIA Program Fees

  • Project sponsors must pay a fee of $100,000 as part of the Letter of Interest review process, due upon request by DOT.
  • The TIFIA JPO will require each applicant to pay a non-refundable Application Fee of $50,000.
  • Larger projects will be required to pay additional fees.
  • Each borrower will be required to pay a Transaction Fee equal to the costs incurred by the TIFIA JPO in negotiating the credit agreement. This credit processing fee will typically range from $300,000- $500,000.
  • Borrowers must pay an annual Loan Servicing Fee, due by November 15, of approximately $12,000.
  • Borrowers also will be required to pay a Monitoring Fee as defined in the credit agreement.

TIFIA Approved Projects

TIFIA Projects & Project Profiles

TIFIA Portfolio

TIFIA Portfolio

TIFIA JPO Organizational Framework

JPO flow chart

A solid line connects the Secretary of Transportation to the DOT Credit Council, which consists of:

  • Deputy Secretary of Transportation (Chair)
  • Assistant Secretary for Budget and Programs/CFO (Vice Chair)
  • Under Secretary of Transportation For Policy
  • General Counsel
  • Assistant Secretary for Transportation Policy
  • Director of OSDBU
  • Federal Transit Administrator
  • Federal Highway Administrator
  • Federal Railroad Administrator
  • Maritime Administrator
  • 3 At-large Members

A solid line connects the DOT Credit Council to the Director of the Office of Innovative Program Delivery, with another solid line connecting the Director of the Office of Innovative Program Delivery to the TIFIA Joint Program Office. A dotted line also connects the Assistant Secretary for Budget and Programs/CFO (Vice Chair) to the TIFIA Joint Program Office.

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