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USDOT Removes Financing Policy Roadblock, Unlocks Higher TIFIA Loan Limits
Policy updates lift limits on TIFIA loans, letting all transport projects finance up to 49% of costs, aiming for faster, cheaper builds.

The TIFIA change will allow all transportation infrastructure projects to finance up to 49% of eligible costs, as authorized by TIFIA legislation.
Photo: METRO
On July 7, the U.S. Department of Transportation’s (USDOT) Build America Bureau announced a policy update to the Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program.
The change will allow all transportation infrastructure projects to finance up to 49% of eligible costs, as authorized by TIFIA legislation. According to a White House release, a long-standing DOT policy limited what kinds of projects could finance up to 49%, while most were capped at up to 33%, presenting a roadblock for many project sponsors seeking to build infrastructure.
“It’s common sense to allow all eligible projects the same access to our low-interest financing opportunities. We are building infrastructure easier, quicker, and cheaper,” U.S. Transportation Secretary Sean P. Duffy said. "This update is the result of extensive analysis, successful pilot programs, and listening to feedback from our partners.”
TIFIA Program Evolves to Broaden Financing Opportunities
Under the first Trump administration, the Build America Bureau began in 2018 to identify categorical eligibilities in addition to the project-by-project request approach to address customer feedback and increase the availability of higher percentage financings.
The bureau established several pilot programs to allow sponsors access to the higher financing maximum, including the TIFIA Rural Projects Initiative and certain transit and Transit-Oriented Development projects.
The bureau’s TIFIA credit program provides flexible, long-term, low-interest loans that enable public and private project sponsors to accelerate infrastructure delivery at a lower financing cost and must be repaid using non-federal funding.
According to a White House release, a federal statute permitted TIFIA loans to finance up to 49% of anticipated eligible project costs since 2012. Still, USDOT generally maintained its policy of limiting loans to a maximum of 33% for most projects.
“The TIFIA loan program has proven to be a highly effective tool, supporting the delivery of more than $150 billion in infrastructure investment through over $52 billion in flexible, low-cost loans. This policy update will ensure the program remains available at full capacity to support our private and local partners,” said Build America Bureau Executive Director Morteza Farajian, Ph.D.
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