The U.S. Department of Transportation (USDOT) has updated its longstanding policy under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program to allow all eligible transportation infrastructure projects to finance up to 49% of their eligible costs through low-interest federal loans. This move eliminates a prior cap of 33% that had applied to most project types, streamlining access to federal financing.
The policy change, led by the Build America Bureau, is expected to accelerate project delivery, reduce financing costs, and enhance public-private partnership opportunities. While the law has permitted up to 49% financing since 2012, the DOT’s internal policy previously restricted that access for most applicants.
TIFIA loans are repaid using non-federal funds and offer flexible, long-term, low-interest financing. According to the Bureau, the program has already supported more than $150 billion in infrastructure investment through over $52 billion in loans. Recent pilot initiatives, such as the Rural Projects Initiative and Transit-Oriented Development loans, demonstrated the minimal taxpayer risk and significant cost savings of higher-percentage financing.
With this update, USDOT aims to make the TIFIA program more inclusive and efficient, simplifying underwriting processes and expanding its use across highways, rail, transit, port, airport, and other infrastructure projects.