Q. Transit Funding Available for Long-Term Recovery

Answer

Will the Federal Transit Administration (FTA) provide any additional assistance beyond American Recovery and Reinvestment Act (ARRA) funds to aid in states' long-term recovery efforts?

1.     ARRA funds are an emergency appropriation from Congress to create jobs and stimulate the economy immediately.

2.     FTA will continue to apportion funds received through the annual appropriations process to States and urbanized areas.  

3.     FTA encourages transit agencies to examine public-private partnerships and innovative finance mechanisms such as TIFIA loans or Grant Anticipation Notes to help bridge temporary budget shortfalls due to the economic recession.

BACKGROUND:  

The Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA) is a Federal credit program that offers secured loans, loan guarantees, and lines of credit to eligible transportation projects.  TIFIA can help leverage Federal funds by attracting private co-investment in surface transportation projects of regional or national significance.  

Grant Anticipation Notes (GANS) are a type of debt financing instrument that allows transit agencies to borrow in anticipation of future FTA grants.  GANS are often used by transit agencies as a mechanism to manage cash flows and provide funds until Federal grant funds are available to repay the debt.

Public-private partnerships (PPPs) are primarily a procurement mechanism that can help State and local governments allocate risk between the public and private sector.  PPPs may also help speed project delivery.  

For more information on federal Recovery Act provisions, Answer Link

  • Last Updated Dec 13, 2016
  • Views 1
  • Answered By David Martin

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