Skip to content

State Infrastructure Banks (SIBs)


State Infrastructure Banks are revolving infrastructure investment funds for surface transportation that are established and administered by states. A SIB, much like a private bank, can offer a range of loans and credit assistance enhancement products to public and private sponsors of Title 23 highway construction projects, Title 49 transit capital projects, and Title 49 (subtitle V) railroad projects. The requirements of Titles 23 and 49 apply to SIB repayments from Federal and non-Federal sources. All repayments are considered to be Federal funds.

SIBs give states the capacity to increase make more efficient use of its transportation funds and significantly leverage Federal resources by attracting non-Federal public and private investment. Alternatively, SIB capital can be used as collateral to borrow in the bond market or to establish a guaranteed reserve fund. Loan demand, timing of needs, and debt financing considerations are factors to be weighed by states in evaluating a leveraged SIB approach.

SIBs are capitalized with Federal-aid surface transportation funds and matching State funds. (Several states have established SIBs or separate SIB accounts capitalized solely with state funds.) As loans or other credit assistance forms are repaid to the SIB, its initial capital is replenished and can be used to support a new cycle of projects.


Two State Infrastructure Bank (SIB) pilot programs currently exist. The first pilot program was authorized by the National Highway System Designation Act of 1995 (NHS Act), section 350 (enacted November 28, 1995). The second pilot program was authorized by the Transportation Equity Act for the 21st Century (TEA-21), section 1511 (enacted June 9, 1998). Thirty-one States (including Puerto Rico) established NHS Act SIBs and two additional States established TEA-21 SIBs (see Table 1). No additional States may establish SIB pilot programs. Congress in 2005 authorized a permanent SIB program that is codified in 23 U.S.C. 610. No states have created SIBs under the Title 23 program.

Table 1. SIB Pilot Programs and Federal Capitalization
  State Year(s) of Federal Capitalization Amount of Federal Capitalization
1 Florida 1996, 1997, 1998, 1999, 2003 $101,065,437
2 Missouri 1996, 1997, 1999 $48,410,000
1 Alaska 1997 $2,490,000
2 Arizona 1996 and 1997 $46,185,974
3 Arkansas 1997 $1,500,000
4 California 1996 $3,000,000
5 Colorado 1997 $1,500,000
6 Delaware 1997 $4,800,000
7 Indiana 1997 $3,390,000
8 Iowa 1997 $1,500,000
9 Maine 1997 $2,540,000
10 Michigan 1997 $11,050,000
11 Minnesota 1997 & 1999 $35,069,200
12 Nebraska 1997 $2,830,000
13 New Mexico 1997 $12,071,948
14 New York 1997 $12,000,000
15 North Carolina 1997 $1,260,000
16 North Dakota 1997 $2,540,000
17 Ohio 1996 & 1997 $87,000,000
18 Oregon 1996 & 1997 $14,483,000
19 Pennsylvania 1997 $17,390,000
20 Puerto Rico 1997 & 1998 $12,008,588
21 Rhode Island 1997 $1,500,000
22 South Carolina 1997 $3,000,000
23 South Dakota 1997 $11,152,719
24 Tennessee 1997 $1,500,000
25 Texas 1996 & 1997 $171,288,804
26 Utah 1997 $2,310,000
27 Vermont 1997 $2,060,000
28 Virginia 1996 & 1997 $18,000,000
29 Washington 1997 $1,500,000
30 Wisconsin 1997 $1,500,000
31 Wyoming 1997 $23,541,942
      Total: $661,437,612

Source: U.S. General Services Administration Financial Management Information Systems (FMIS), March 31, 2011.

States participating in the SIB pilot programs have executed cooperative agreements with the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA), as applicable, establishing the basic requirements of the SIB. The cooperative agreement outlines the structure of the SIB, including the administering agency, financial assistance policies, accounting and audit procedures, and sanctions and compliance.

Funding Sources

Federal funding for the NHS Act SIB pilot programs was limited to funds authorized in fiscal years 1996 and 1997, including $150 million from the General Fund of the U.S. Treasury. No additional Federal funds are available to capitalize NHS Act SIB pilot programs. Federal funding for the TEA-21 SIB pilot programs was limited to funds authorized by TEA-21 as well as the funds eligible for the NHS Act SIB pilot programs. According to FHWA reports, about $661 million in Federal funding from fiscal years 1996 through 2003 was provided to capitalize the pilot program SIBs. No additional Federal funds are available to capitalize either of the SIB pilot programs.

States wishing to establish a new SIB or expand their SIB using Federal funds may do so in accordance with the provisions of 23 U.S.C. 610.

States must match the Federal funds used to capitalize the SIB on an 80-20 Federal/non-Federal basis, except for the highway account where the sliding scale provisions apply. States also have the opportunity to contribute additional state or local funds beyond the required nonfederal match.

MAP-21 has not allowed new 2013-2014 funding to be used to capitalize SIBs.

Types of SIB Assistance

SIB pilot programs may offer highway and transit capital project sponsors the following forms of assistance


  • For all or part of a project's cost
  • With flexible terms
  • At or below market interest rates
  • May be subordinated
  • Short-term construction or long-term debt financing

Credit Enhancement:

  • Capital reserves and other security for bond or debt instrument financing
  • Letters of credit (direct pay or stand-by)
  • Lines of credit
  • Bond insurance and loan guarantees
  • Finance purchase and lease agreements with respect to transit projects

TEA-21 SIB pilot programs also may assist railroad projects if 49 U.S.C. Subtitle V funds were used to capitalize the bank. Despite the ability to offer other forms of credit enhancement, SIB pilot programs have provided direct loans almost exclusively.

back to top