DOT Makes $1B in New TIFIA Loans
December 19, 2019|Jeff Davis
In the last seven days, the U.S. Department of Transportation has announced over $1 billion in new federal direct loans under the TIFIA transportation finance program, for a pair of new road projects in Virginia and North Carolina.
A $502.9 million direct loan was announced on December 12 to the Hampton Roads Transportation Accountability Commission for a slate of regional priority projects on Interstate 64 to increase capacity through the addition of both general purpose and HOV lanes and also by upgrading design elements. The loan will be repaid by local sales taxes and motor fuel taxes (subject to annual appropriation by the state legislature). Total project cost is $1.43 billion, with the TIFIA loan providing 35 percent of the financing.
Then, on December 18, a $501.5 million direct loan was announced for the “Complete 540” project in Raleigh – a 17-mile extension of the Triangle Expressway toll road with three tolled lanes in each direction running from Interstate 40, south of Raleigh, west to Apex. The total cost of this phase of the project is $1.37 billion and the TIFIA loan will provide 37 percent of the financing, to be repaid with toll revenues. When finally completed with a subsequent north-south segment, Complete 540 will give Raleigh its own outer beltway.
Because of the changes made by the Federal Credit Reform Act of 1990, the $1 billion cost of these TIFIA loans are not recorded as part of the federal budget. Only the “subsidy cost” of the loan is recorded in the budget, and paid for with Highway Trust Fund contract authority. The subsidy cost of each loan is a unique calculation, but the FY 2020 Federal Credit Supplement estimated that the average subsidy rate for direct loans closed in FY 2020 would be 5.72 percent, meaning that the two new $500 million loans would only cost the Federal Highway Administration about $29 million per loan in contract authority.
Once these two new loans close in a few months, that will bring the total amount of TIFIA loans closed by the Trump Administration to $6.65 billion, supporting projects that total $22.57 billion in capital costs (for an average TIFIA share of 29 percent). We don’t have precise estimates for the subsidy cost of each of those loans, but using the annual averages from the Federal Credit Supplement (as shown in the table below), that $6.65 billion in loans will only have cost the Federal Highway Administration about $420 million in contract authority.
(However, under the FAST Act, TIFIA gets between $250 and $270 million per year in usable contract authority, and in FY 2018 they only used about $140 million and in FY 2019 about $100 million, so the unused balances keep building up, as discussed in this ETW article from December 2015.)
|FY Closed||State/Project||Cost||Size||Rate||Contr. Auth.|
|FY17||CO||C-470 Express Lanes||$325.1||$107.0||5.28%||$5.6|
|FY17||WA||Bellevue Belred Street Network||$323.2||$99.6||5.28%||$5.3|
|FY17||WA||Sound Transit O&M Facility||$449.2||$87.7||5.28%||$4.6|
|FY17||CA||San Diego Mid-Coast Transit Corridor||$2,017.0||$537.5||5.28%||$28.4|
|FY17||NY||NYC Moynihan Station Train Hall||$1,850.0||$526.1||5.28%||$27.8|
|FY17||CA||Riverside County I-15 Express Lanes||$471.0||$152.2||5.28%||$8.0|
|FY17||CA||Orange County I-405 Improvement||$1,905.8||$628.9||5.28%||$33.2|
|FY18||MA||MBTA PTC Implementation||$516.7||$162.0||7.90%||$12.8|
|FY18||VA||I-66 Toll Lanes||$3,724.0||$1,229.0||7.90%||$97.1|
|FY19||CA||SBCTA I-10 Express Lanes||$928.9||$225.0||6.30%||$14.2|
|FY19||TX||Manor Expressway Phase 3||$143.0||$46.9||6.30%||$3.0|
|FY19||TX||Grand Parkway Segments H&I||$1,924.0||$605.3||6.30%||$38.1|
|FY19||WA||Lynnwood Link Extension||$3,124.8||$657.9||6.30%||$41.4|
|FY20||VA||Hampton Roads Priority Projects||$1,430.1||$502.9||5.72%||$28.8|
|FY20||NC||Complete 540 Project||$1,365.3||$501.5||5.72%||$28.7|
|Total, TIFIA Under Trump Administration||$22,569.1||$6,652.1||$418.6|
September 13, 2023 | Sohail Husain
September 13, 2023 - The U.S. Senate Committee on Environment and Public Works met to examine the effects of extreme...
August 18, 2023 | Garett Shrode
August 18, 2023 - At a recent meeting in Indianapolis, state legislators from around the country exchanged ideas and status...
August 4, 2023 | Jeff Davis
August 4, 2023 - For decades (starting in the 1980s), a group of states, mostly from the Sun Belt, habitually...
July 28, 2023 | Anusha Chitturi
July 28, 2023 - The Senate Environmental and Public Works’ subcommittee on Clean Air, Climate, and Nuclear held a hearing...
July 28, 2023 | Jeff Davis
July 28, 2023 - We have updated our cumulative statistics on TIGER-BUILD-RAISE grants from their origin in 2009 to the...
July 14, 2023 | Jeff Davis
July 14, 2023 - After almost two years of explosive growth, the Federal Highway Administration's metric of highway construction costs...
July 14, 2023 | Jeff Davis
July 14, 2023 - The Federal Highway Administration has resolved $2.5 billion of its $3.5 billion accounting discrepancy that was...
June 16, 2023 | Glendedora Dolce
June 14, 2023 - The U.S. Senate Committee on Environment & Public Works this week held a hearing with Federal...
May 19, 2023 | Jeff Davis
May 19, 2023 - It looks more likely than not that some kind of permitting reform for construction projects will...
May 12, 2023 | Philip Plotch
May 12, 2023 - The Alan M. Voorhees Transportation Center celebrated its 25th anniversary this month with remembrances of a...
May 12, 2023 | Jonathan Hammond
May 12, 2023 - The Eno Center for Transportation has selected Glendedora Dolce as our 2023 Thomas J. O’Bryant Fellow....
March 31, 2023 | Philip Plotch
March 31, 2023 - A subcommittee of the House Transportation and Infrastructure Committee held a public hearing on March 28...