From day one, President Obama and this Department of Transportation have been committed to creating jobs as we rebuild and repair America’s roadways, runways, and railways. Today I am proud to announce yet another great resource for state and local governments and project sponsors to tap for their transportation needs.
The Obama Administration is launching the largest transportation loan program in DOT history. Through our TIFIA program, we're using $1.7 billion in capital to make available up to $17 billion in credit assistance for critical infrastructure projects across the country.
This is a continuation of a trusted infrastructure loan program—a program President Obama has used to put Americans to work right away building the big transportation projects we need to prosper. The Transportation Infrastructure Finance and Innovation Act program provides direct loans, loan guarantees, and standby lines of credit to major infrastructure projects throughout the nation.
TIFIA offers flexible terms and gives many qualified, large scale projects the extra push needed to break ground and put people to work.
And today, through the recently enacted transportation bill, MAP-21, we’re taking our TIFIA program—and the opportunity to launch new projects—to a new level. When the President signed MAP-21 earlier this month, the capital available for our TIFIA credit assistance program jumped from $120 million for fiscal year 2012 to an unprecedented $1.7 billion for the next two years. Each dollar of federal funds can provide approximately $10 in TIFIA credit assistance, meaning $17 billion in loans through TIFIA, which in turn can leverage $20-$30 billion in transportation infrastructure investment.
That means these funds could soon leverage up to $50 billion in public and private investment to address important infrastructure needs across the country—and create good jobs in the process.
And our project assistance doesn't end there. We have also established the Project Finance Center to help project sponsors analyze financial options and overcome funding challenges. We'll help planners think creatively about financing options and how best to leverage the powerful new infrastructure funds in MAP-21.
Americans have always done big things not in spite of hard times, but as a means of overcoming them. From the Erie Canal to the Interstate Highway System, we’ve invested in our infrastructure as a way of giving the next generation a better future.
Now, through the TIFIA loan program, the Obama Administration is providing cities and states the boost they need to take on significant infrastructure work. These are much-needed projects that will spur economic growth in the short-term and well into the future. And at DOT, we are working hard to help them get started as quickly as possible.