The credit agreement is the first of its kind in the nation in supporting four separate Sound Transit projects. It is expected to yield regional taxpayers long-term savings of between $200 million and $300 million in reduced borrowing costs.
The U.S. Department of Transportation (U.S. DOT) executed an $87.7 million low-interest loan that will reduce regional taxpayers’ costs in constructing a new maintenance base in Bellevue to support upcoming light rail expansions across the region.
The loan, with an interest rate of 2.73%, is the agency’s second under a $1.99 billion master credit agreement approved by U.S. DOT last December through the Transportation Infrastructure Finance and Innovation Act (TIFIA). The credit agreement is the first of its kind in the nation in supporting four separate Sound Transit projects. It is expected to yield regional taxpayers long-term savings of between $200 million and $300 million in reduced borrowing costs.
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“The people of Puget Sound stand to benefit the most from this needed U.S. Department of Transportation loan that will make possible a second storage and maintenance facility for upcoming light rail expansions,” said Sound Transit CEO Peter Rogoff. “Securing the nation’s first master credit agreement last year was a big win for our region, especially when one considers the taxpayer dollars we’ll save on borrowing costs.”
Sound Transit applied for the U.S. DOT TIFIA loans, administered by the Build America Bureau, to insulate the agency from unexpected downturns in the economy and provide taxpayers savings from agency borrowing costs. The TIFIA loans allow the agency to borrow money at rates that are typically significantly lower than otherwise available. Loans supporting Sound Transit’s Lynnwood and Federal Way light rail extensions are expected to be executed in 2018.
Sound Transit is continuing to advocate for Congress to maintain the federal government’s longstanding and bipartisan partnership with regions around the country of providing grants supporting transit expansions. These grants, which unlike loans don’t need to be repaid, are proposed for elimination by the Trump Administration’s FY 2018 budget.
The 25-acre Operations and Maintenance Facility East in Bellevue is needed for continuing expansion of the region’s light rail system. By 2024, the system will grow from 22 to 62 miles and the existing light rail fleet will more than triple in size, from 62 to 214 vehicles. The current facility in Seattle can store and maintain at least 104 light rail vehicles. The new eastside facility will be designed to maintain, store, and deploy an additional 96 vehicles.
The Peninsula Corridor Joint Powers Board recently met for a budget workshop, during which staff outlined the significant service reductions Caltrain could be forced to make without new external funding.
Funding for the purchase of the railcars comes from the nearly $220 million in additional capital dollars Gov. Josh Shapiro allocated in November 2025 to support urgent safety upgrades and infrastructure improvements.
With major events and increased travel expected across the state this summer, the Administration is focused on making sure people have a reliable, affordable alternative to driving so we can reduce congestion, support daily commuters, and keep Massachusetts moving.
The final seven-mile segment of the 2 Line includes new stations at Mercer Island and Judkins Park and connects to the 1 Line at the International District/Chinatown Station. The Link light rail system now spans 63 miles and includes 50 stations.
From March 29 through May 9, shuttle buses will replace train service between Bridgeport Station and Norristown Transit Center. Train service will operate as normal between Bridgeport Station and 69th Street Transit Center.
Nadine S. Lee, who has served as president/CEO since July 2021, said the decision comes after careful reflection on the agency’s progress and its path forward.
In this edition of Biz Briefs, we highlight the latest developments shaping the future of mobility — from manufacturers and technology providers to transit agencies and motorcoach service operators.
