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States Seek to Take Advantage of TIFIA
The recent surface transportation law, MAP-21, expanded the Transportation Infrastructure Finance & Innovation Act (TIFIA), and localities are lining up to take advantage of the program. TIFIA leverages federal funds to attract private and other nonfederal investment dollars.
So far, 15 states, cities, and local transportation authorities have submitted 19 different project requests totaling more than $27 billion, highlighting the program’s widespread popularity.
TIFIA will offer $1.75 billion in funding over the life of MAP-21. According to FHWA, each dollar of federal money can provide up to $10 in TIFIA credit assistance and leverage $30 in transportation infrastructure investment. That means the $1.75 billion authorized for TIFIA in MAP-21 ($750 million in 2013 and $1 billion in 2014) could generate as much as $52.5 billion worth of construction activity. Based on the metric that each dollar invested in highways generates, on average, 6.4 cents in equipment market activity, MAP-21's TIFIA funding could support as much as $3.36 billion in spending on equipment and product support.
TIFIA is available to surface transportation projects costing more than $50 million. For a project to receive support, it must have its own designated funding stream. Direct TIFIA support is limited to less than half the total cost of the project while credit lines are limited to a third of total costs. The program has delivered more $1.53 billion in project support thus far.
Article Date: 2012-10-15
Source: Associated Equipment Distributors
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