The Build America Bureau advances investment in transportation infrastructure by lending Federal funds to qualified borrowers; clearing roadblocks for credit worthy projects; and encouraging best practices in project planning, financing, delivery, and operations. The Bureau draws on expertise across DOT to serve as a point of coordination for states, municipalities, private partners, and other project sponsors seeking federal financing and technical assistance. Contact us at BuildAmerica@dot.gov.

Morteza's Message: Why Borrow from Us?

By Morteza Farajian, Ph.D., Executive Director, Build America Bureau We proudly offer project sponsors flexible, low-interest loans with terms ranging up to 35 years (in rare cases, up to 75 years) beyond the project completion date. Our loans can be repaid without penalty at any time; interest does not accrue until funds are drawn, and repayments can be postponed up to five years after project completion. That means if you borrow today for a project with a five-year design and construction schedule, the first repayment would not be due until 2033, five years after the project becomes operational and generating benefits. The fixed interest rate for a 40-year loan would be around 4 percent as of December 21, 2023. Starting construction now reduces your exposure to construction inflation, which was more than 25 percent from 2022 to 2023, according to the National Highway Construction Cost Index.  We have more than $110 billion available to lend. We have financed projects with total costs ranging from $10 million to $7 billion. Our $35 billion project pipeline includes transit, passenger and freight rail, ports, highways and bridges, transit-oriented development, and airports. We administer the Transportation Infrastructure Finance and Innovation Act, or TIFIA, and the Railroad Rehabilitation and Improvement Financing Program, or RRIF credit assistance programs. Because borrowers repay these funds, TIFIA and RRIF loans count as a non-federal match for federal grants. TIFIA loans primarily finance surface transportation infrastructure, such as transit and highway projects. The Bipartisan Infrastructure Law expanded our authority to finance airport and transit-oriented development projects. TIFIA loans typically finance up to 33 percent of eligible project costs. Secretary Pete Buttigieg announced the TIFIA 49 initiative, which increases financing up to 49 percent for transit and transit-oriented development projects.  With our Rural Project Initiative, communities not in an urban area (Census defined) or within one that has a population less than 150,000 are eligible for loans at one-half the U.S. Treasury interest rate (less than 2 percent as of December 21, 2023) for up to 49 percent of project costs in the $10 million to $100 million range. Projects under $75 million are eligible for the Bureau to offset some advisor costs.  Under TIFIA, total federal assistance (grants, loans and formula funds) is limited to 80 percent of eligible project costs. User fees, sales tax, fuel and property taxes, and development revenue like lease payments are acceptable repayment sources.    The RRIF program primarily finances railroad projects and transit-oriented development near intercity passenger rail stations. RRIF can cover up to 100 percent of railroad project costs or 75 percent of transit-oriented development project costs.  The Bureau also allocates authorization of private activity bonds or PABS, which provide private investors access to lower, tax-exempt interest rates. Nearly $17 billion in PABs authority the Bureau allocated is already issued, with another $2.6 billion pending issuance. We can allocate up to $30 billion total thanks to $15 billion in new authority under the Bipartisan Infrastructure Law. If you have an idea for an infrastructure project, we can help you explore delivery and financing options. As your partner, we share best practices and provide technical assistance to help you develop and deliver the infrastructure your community needs to thrive faster, more efficiently, and more effectively. Contact us today at BuildAmerica@dot.gov to get started.

Click to hear Dr. Farajian's latest message.

Contents

• Technical Assistance Updates
• Bureau Advances Transportation Solutions in Underserved Communities
• America’s Infrastructure Advances with Expanded Regional Grants
• Next Phase of Thriving Communities Grant Program Underway
• Bureau Partners with Kansas City to Accelerate Mobility and Infrastructure Projects
• Coming Soon - Innovative Finance and Asset Concession Grant Program
• $1.5 Billion Available through the 2024 RAISE Grants
• Loan Closings
• Virginia Express Lanes Project Moves Forward with $141 Million Loan
• New LA 415 Will Connect Routes to Support Mobility in Baton Rouge Metropolitan Area  
• New Rural Autonomous Vehicle (RAV) Research Program Benefits Rural and Tribal Communities Across America

Technical Assistance Updates

Bureau Advances Transportation Solutions in Underserved Communities

The Bureau announced it is advancing vital transportation projects in underserved communities across the nation by awarding seven tribal and six rural communities grants totaling $3.4 million through the Rural and Tribal Assistance Pilot Program. This program supports early-stage development of transportation solutions in rural and Tribal communities with grants funding technical, legal, and financial assistance. The Bureau received 406 applications requesting more than $127 million. Tribal communities submitted 70 of these applications totaling $19 million. The selected awardees are:

“The Karuk Tribe is excited to receive this grant through the U.S. DOT Rural and Tribal Technical Assistance pilot program," said Misty Rickwalt, Karuk Tribe Transportation Director. “We look forward to developing a transit program so that we can assist our communities with essential and reliable transportation services.”

The Rural and Tribal Assistance Pilot Program joins the Thriving Communities Program, the Regional Infrastructure Accelerators, and other new technical assistance opportunities that seek to ensure communities have the tools to access federal funding and financing for transformative infrastructure projects. Find additional technical assistance resources on the DOT Navigator at www.transportation.gov/dot-navigator. For updates, subscribe to the Bureau newsletter and announcements here. 

America’s Infrastructure Advances with Expanded Regional Grants

The Bureau took a step forward in advancing critical transportation infrastructure projects across the United States by expanding the Regional Infrastructure Accelerators (RIA) program to a total of 24 accelerators receiving $34 million in funding. The RIA program accelerates project delivery and clears barriers for credit-worthy projects by funding and encouraging best practices in project planning, studies and analysis, preliminary engineering, and design. Read the release and see below for the selected 2023 Regional Infrastructure Accelerator awardees:

The Bureau held a summit for representatives of all the Regional Infrastructure Accelerators on November 29^th in collaboration with the Build America Center at the University of Maryland. More than 100 participants were gathered from all three cohorts to share best practices, connect with their peers, and determine their next steps for success. The summit focused on collaboration and building relationships between all participants, reflecting the true spirit of the program.

Alison Bates, Regional Director for the Governor’s Office of Rural Development in Louisiana said, “My experience today at the summit has been phenomenal. We’ve had a lot of good information sharing, and for us as a freshman cohort, and this being our very first attempt at implementing the accelerator, we’ve learned a lot from people that have done it before. Everyone in Louisiana is really excited about the accelerator project, so as much as information as I can bring back to them, that was my goal, and that’s what I’m excited to do.”

Regional Director for the Louisiana Governor’s Office of Rural Development Alison Bates (left), and Build America Bureau Innovative Finance and Delivery Lead Maritza Mercado Pechin (right) speaking at the Regional Infrastructure Summit at University of Maryland

Next Phase of Thriving Communities Grant Program Underway

Helping More Communities Unlock Access to Historic Infrastructure Investments

The Bureau team is evaluating the 226 community letters of interest and more than 70 submissions for capacity builder teams in response to the Thriving Communities Program new round of funding availability. We plan to announce selections spring 2024.  

DOT's Office of Public Engagement and the Build America Bureau hosted the first Thriving Communities Program convening in Washington, DC on November 30th and December 1st. More than 250 people attended with representatives from 62 of 64 communities across the Thriving Communities Program. Participants shared resources, experiences, and practices and engaged leaders to accelerate transformative, community-driven change and infrastructure projects that will increase mobility, reduce pollution, deploy innovative community engagement, address workforce development gaps, improve health outcomes, and expand affordable, equitable transportation options.

USDOT Strategic Advisor for Technical Assistance and Community Solutions Mariia Zimmerman (left photo) and Assistant Secretary for Transportation Policy Christopher Coes (left), Environmental Protection Agency Deputy Assistant Administrator for Environmental Justice Matthew S. Tejada (middle), and Health and Human Services Department Senior Advisor for Environmental Justice and Climate Change Ana Mascareñas (right) speak at the Convening.

Bureau Partners with Kansas City to Accelerate Mobility and Infrastructure Projects

The Bureau established a strategic partnership, called an Emerging Projects Agreement, focused on Kansas City’s $15 billion program of projects to improve mobility, connectivity, safety and equity throughout the region. Under the agreement, the Build America Bureau and Kansas City will explore opportunities for innovative project planning, procurement, financing, and delivery that could include Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation and Improvement Financing (RRIF) loans, private activity bond allocations (PABs), and technical assistance grants.

Kansas City Mayor Quinton Lucas said he is “proud our federal partnerships continue to allow us to make transformational, positive impacts in our community, and I thank the U.S. Department of Transportation and the Build America Bureau for helping us find long-term solutions to ensure Kansas Citians are able to travel to all areas of our community safely, efficiently, and equitably.”

Read the release.

Kansas City Mayor Quinton Lucas (left) and Bureau Executive Director Dr. Morteza Farajian (right) sign the Emerging Projects Agreement.

Coming Soon - Innovative Finance and Asset Concession Grant Program

A new grant program totaling $100 million has been authorized by the Bipartisan Infrastructure Law (BIL) providing funding for State and local government technical, financial and legal advisory service costs for alternative project delivery. These grants will enable recipients to develop and evaluate public-private partnerships―including asset concessions―to explore opportunities for innovative finance and delivery. The Bureau expects to issue the Notice of Funding Opportunity in early 2024.

Sign up for email updates here to be alerted when the NOFO is issued. Questions? Email InnovativeFinanceTA@dot.gov.

$1.5 Billion Available through the 2024 RAISE Grants

DOT published a Notice of Funding Opportunity (NOFO) for $1.5 billion in grant funding through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program for 2024. The popular program helps communities around the country carry out projects with significant local or regional impact. In 2023, RAISE funding supported 162 projects in all 50 States, the District of Columbia, Puerto Rico, and the Northern Mariana Islands.

The NOFO is available here. The deadline for applications is 11:59 PM EST on February 28, 2024, and selections will be announced no later than June 27, 2024. 

Loan Closings

Virginia Express Lanes Project Moves Forward with $141 Million Loan

Hampton Roads, Virginia area drivers will benefit from new express lanes along I-64 when construction is complete is 2026. The Build America Bureau and the Hampton Roads Transportation Accountability Commission (Commission) on behalf of the Virginia Department of Transportation closed a $141 million loan to improve regional mobility and safety.   

The $445 million project is part of the Hampton Roads Express Lanes Network, a 45-mile system of continuous express lanes along I-64. This is Commission’s third TIFIA loan, following the Hampton Roads Regional Priority Projects and the Hampton Roads Bridge Tunnel Project. 

New LA 415 Will Connect Routes to Support Mobility in Baton Rouge Metropolitan Area  

New Rural Autonomous Vehicle (RAV) Research Program Benefits Rural and Tribal Communities Across America

DOT announced a $25 million funding opportunity for its Rural Autonomous Vehicle (RAV) research program. Accredited universities are eligible to apply for this competitive, six-year cooperative agreement program. 

Recipients will use RAV program funding to conduct research regarding the benefits and responsible application of automated vehicles and associated mobility technologies in rural and Tribal communities. One $15 million award will focus on passenger transportation, and a separate $10 million award will focus on movement of freight to support and enable automated freight and delivery vehicles serving rural areas.

Nineteen percent of the U.S. population lives in rural areas, and almost a quarter of all Americans aged 65 and older reside in rural communities. Yet 47 percent of all roadway fatalities and 34 percent of all public highway-rail grade crossing fatalities occur on rural roads. Emergency response times are more than twice as long in rural areas as compared to urban areas. 

An informational webinar on the RAV Funding Opportunity will be held in January 2024. For more information, please visit https://www.transportation.gov/policy/ost-r/rdtrav.

If you are interested in exploring federal financing with the Build America Bureau, please contact us at BuildAmerica@dot.gov.

Follow us on LinkedIn!