Overview of Credit Programs
The U.S. Department of Transportation (DOT) currently has two innovative approaches to transportation investment to support highway and transit projects. DOT administers two credit programs that provide credit assistance for surface transportation investments. The credit programs are authorized to issue direct loans, loan guarantees or lines of credit to support the construction of transportation infrastructure. Credit programs enable the Federal Government to maximize limited Federal resources by leveraging project investment models that invite non-Federal co-investment and enable eventual repayment of the taxpayer.
First, one of the Department’s most successful programs over the last decade has been the Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA) program, which provides credit assistance for major surface transportation projects around the country.
And second, the Railroad Rehabilitation and Improvement Financing (RRIF) program provides direct loans and loan guarantees to acquire, improve, or rehabilitate intermodal or rail equipment or facilities, including track, components of track, bridges, yards, buildings and shops and develop or establish new intermodal or railroad facilities. RRIF was established by the Transportation Equity Act for the 21st Century (TEA-21) and amended by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).