23 U.S.C. §§ 602–609

8 sections in range

§602. Determination of eligibility and project selection

23 U.S.C. § 602

(a)

Eligibility.—

(1)

In general.— A project shall be eligible to receive credit assistance under the TIFIA program if—

(A)

the entity proposing to carry out the project submits a letter of interest prior to submission of a formal application for the project; and

(B)

the project meets the criteria described in this subsection.

(2)

Creditworthiness.—

(A)

In general.— To be eligible for assistance under the TIFIA program, a project shall satisfy applicable creditworthiness standards, which, at a minimum, shall include—

(i)

a rate covenant, if applicable;

(ii)

adequate coverage requirements to ensure repayment;

(iii)

an investment grade rating from at least 2 rating agencies on debt senior to the Federal credit instrument; and

(iv)

an investment-grade rating from at least 2 rating agencies on the Federal credit instrument, subject to the condition that, with respect to clause (iii), if the total amount of the senior debt and the Federal credit instrument is less than $150,000,000, 1 rating agency opinion for each of the senior debt and Federal credit instrument shall be sufficient.

(B)

Senior debt.— Notwithstanding subparagraph (A), in a case in which the Federal credit instrument is senior debt, the Federal credit instrument shall be required to receive an investment grade rating from at least 2 rating agencies, unless the total amount of other senior debt and the Federal credit instrument is less than $150,000,000, in which case 1 rating agency opinion shall be sufficient.

(3)

Inclusion in transportation plans and programs.— A project shall satisfy the applicable planning and programming requirements of sections 134 and 135 at such time as an agreement to make available a Federal credit instrument is entered into under the TIFIA program.

(4)

Application.— A State, local government, public authority, public-private partnership, or any other legal entity undertaking the project and authorized by the Secretary shall submit a project application that is acceptable to the Secretary.

(5)

Eligible project cost parameters.—

(A)

In general.— Except as provided in subparagraph (B), a project under the TIFIA program shall have eligible project costs that are reasonably anticipated to equal or exceed the lesser of—

(i)

$50,000,000; and

(ii)

33⅓ percent of the amount of Federal highway funds apportioned for the most recently completed fiscal year to the State in which the project is located.

(B)

Exceptions.—

(i)

Intelligent transportation systems.— In the case of a project principally involving the installation of an intelligent transportation system, eligible project costs shall be reasonably anticipated to equal or exceed $15,000,000.

(ii)

Transit-oriented development projects.— In the case of a project described in section 601(a)(12)(E), eligible project costs shall be reasonably anticipated to equal or exceed $10,000,000.

(iii)

Rural projects.— In the case of a rural infrastructure project or a project capitalizing a rural projects fund, eligible project costs shall be reasonably anticipated to equal or exceed $10,000,000, but not to exceed $100,000,000.

(iv)

Local infrastructure projects.— Eligible project costs shall be reasonably anticipated to equal or exceed $10,000,000 in the case of a project or program of projects—

(I)

in which the applicant is a local government, public authority, or instrumentality of local government;

(II)

located on a facility owned by a local government; or

(III)

for which the Secretary determines that a local government is substantially involved in the development of the project.

(6)

Dedicated revenue sources.— The applicable Federal credit instrument shall be repayable, in whole or in part, from—

(A)

tolls;

(B)

user fees;

(C)

payments owing to the obligor under a public-private partnership; or

(D)

other dedicated revenue sources that also secure or fund the project obligations.

(7)

Public sponsorship of private entities.— In the case of a project that is undertaken by an entity that is not a State or local government or an agency or instrumentality of a State or local government, the project that the entity is undertaking shall be publicly sponsored as provided in paragraph (3).

(8)

Applications where obligor will be identified later.— A State, local government, agency or instrumentality of a State or local government, or public authority may submit to the Secretary an application under paragraph (4), under which a private party to a public-private partnership will be—

(A)

the obligor; and

(B)

identified later through completion of a procurement and selection of the private party.

(9)

Beneficial effects.— The Secretary shall determine that financial assistance for the project under the TIFIA program will—

(A)

foster, if appropriate, partnerships that attract public and private investment for the project;

(B)

enable the project to proceed at an earlier date than the project would otherwise be able to proceed or reduce the lifecycle costs (including debt service costs) of the project; and

(C)

reduce the contribution of Federal grant assistance for the project.

(10)

Project readiness.—

(A)

In general.— Except as provided in subparagraph (B), to be eligible for assistance under the TIFIA program, the applicant shall demonstrate a reasonable expectation that the contracting process for construction of the project can commence by no later than 90 days after the date on which a Federal credit instrument is obligated for the project under the TIFIA program.

(B)

Rural projects fund.— In the case of a project capitalizing a rural projects fund, the State infrastructure bank shall demonstrate, not later than 2 years after the date on which a secured loan is obligated for the project under the TIFIA program, that the bank has executed a loan agreement with a borrower for a rural infrastructure project in accordance with section 610. After the demonstration is made, the bank may draw upon the secured loan. At the end of the 2-year period, to the extent the bank has not used the loan commitment, the Secretary may extend the term of the loan or withdraw the loan commitment.

(11)

Public-private partnerships.— In the case of a project to be carried out through a public-private partnership, the public partner shall have—

(A)

conducted a value for money analysis or similar comparative analysis; and

(B)

determined the appropriateness of the public-private partnership agreement.

(b)

Selection Among Eligible Projects.—

(1)

Establishment.— The Secretary shall establish a rolling application process under which projects that are eligible to receive credit assistance under subsection (a) shall receive credit assistance on terms acceptable to the Secretary, if adequate funds are available to cover the subsidy costs associated with the Federal credit instrument.

(2)

Master credit agreements.—

(A)

Program of related projects.— The Secretary may enter into a master credit agreement for a program of related projects secured by a common security pledge on terms acceptable to the Secretary.

(B)

Adequate funding not available.— If the Secretary fully obligates funding to eligible projects for a fiscal year and adequate funding is not available to fund a credit instrument, a project sponsor of an eligible project may elect to enter into a master credit agreement and wait to execute a credit instrument until the fiscal year for which additional funds are available to receive credit assistance.

(3)

Preliminary rating opinion letter.— The Secretary shall require each project applicant to provide a preliminary rating opinion letter from at least 1 rating agency—

(A)

indicating that the senior obligations of the project, which may be the Federal credit instrument, have the potential to achieve an investment-grade rating; and

(B)

including a preliminary rating opinion on the Federal credit instrument.

(c)

Federal Requirements.—

(1)

In general.— In addition to the requirements of this title for highway projects, the requirements of chapter 53 of title 49 for transit projects, the requirements of section 5333(a) of title 49 for rail projects, and the requirements of sections 47112(b) and 50101 of title 49 for airport-related projects, the following provisions of law shall apply to funds made available under the TIFIA program and projects assisted with those funds:

(A)

Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).

(B)

The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

(C)

The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

(2)

NEPA.— No funding shall be obligated for a project that has not received an environmental categorical exclusion, a finding of no significant impact, or a record of decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

(3)

Payment and performance security.—

(A)

In general.— The Secretary shall ensure that the design and construction of a project carried out with assistance under the TIFIA program shall have appropriate payment and performance security, regardless of whether the obligor is a State, local government, agency or instrumentality of a State or local government, public authority, or private party.

(B)

Written determination.— If payment and performance security is required to be furnished by applicable State or local statute or regulation, the Secretary may accept such payment and performance security requirements applicable to the obligor if the Federal interest with respect to Federal funds and other project risk related to design and construction is adequately protected.

(C)

No determination or applicable requirements.— If there are no payment and performance security requirements applicable to the obligor, the security under section 3131(b) of title 40 or an equivalent State or local requirement, as determined by the Secretary, shall be required.

(d)

Application Processing Procedures.—

(1)

Processing timelines.— Except in the case of an application described in subsection (a)(8) and to the maximum extent practicable, the Secretary shall provide an applicant with a specific estimate of the timeline for the approval or disapproval of the application of the applicant, which, to the maximum extent practicable, the Secretary shall endeavor to complete by not later than 150 days after the date on which the applicant submits a letter of interest to the Secretary.

(2)

Notice of complete application.— Not later than 30 days after the date of receipt of an application under this section, the Secretary shall provide to the applicant a written notice to inform the applicant whether—

(A)

the application is complete; or

(B)

additional information or materials are needed to complete the application.

(3)

Approval or denial of application.— Not later than 60 days after the date of issuance of the written notice under paragraph (2), the Secretary shall provide to the applicant a written notice informing the applicant whether the Secretary has approved or disapproved the application.

(e)

Development Phase Activities.— Any credit instrument secured under the TIFIA program may be used to finance up to 100 percent of the cost of development phase activities as described in section 601(a)(2)(A).

Notes, amendments, and revision history

(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 243, § 182; renumbered § 602 and amended Pub. L. 109–59, title I, §§ 1601(b), (c), 1602(b)(2), (5), (d), Aug. 10, 2005, 119 Stat. 1240, 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 611; Pub. L. 114–94, div. A, title II, § 2001(b), Dec. 4, 2015, 129 Stat. 1440; Pub. L. 117–58, div. A, title I, § 11508(d)(3), title II, §§ 12001(b)–(d), (g), 12002(a), Nov. 15, 2021, 135 Stat. 588, 618, 619, 622.)

Editorial Notes

References in Text

The Civil Rights Act of 1964, referred to in subsec. (c)(1)(A), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of Title 42 and Tables.

The National Environmental Policy Act of 1969, referred to in subsec. (c)(1)(B), (2), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, referred to in subsec. (c)(1)(C), is act Jan. 2, 1971, Pub. L. 91–646, 84 Stat. 1894, and which is classified principally to chapter 61 (§ 4601 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4601 of Title 42 and Tables.

Amendments

2021—Subsec. (a)(2)(A)(iv). Pub. L. 117–58, § 12001(b)(1), substituted “an investment-grade rating” for “a rating” and “$150,000,000” for “$75,000,000”.

Subsec. (a)(2)(B). Pub. L. 117–58, § 12001(b)(2), substituted “is senior debt” for “is the senior debt” and “total amount of other senior debt and the Federal credit instrument is less than $150,000,000” for “credit instrument is for an amount less than $75,000,000”.

Subsec. (a)(11). Pub. L. 117–58, § 11508(d)(3), added par. (11).

Subsec. (c)(1). Pub. L. 117–58, § 12001(c), substituted “the requirements of section 5333(a) of title 49 for rail projects, and the requirements of sections 47112(b) and 50101 of title 49 for airport-related projects,” for “and the requirements of section 5333(a) of title 49 for rail projects,” in introductory provisions.

Subsec. (c)(3). Pub. L. 117–58, § 12002(a), added par. (3).

Subsec. (d). Pub. L. 117–58, § 12001(d), added par. (1), redesignated former pars. (1) and (2) as (2) and (3), respectively, and, in par. (3), substituted “paragraph (2)” for “paragraph (1)”.

Subsec. (e). Pub. L. 117–58, § 12001(g), substituted “section 601(a)(2)(A)” for “section 601(a)(1)(A)”.

2015—Subsec. (a)(1), (2)(A), (3). Pub. L. 114–94, § 2001(b)(1)(A)–(C), substituted “the TIFIA program” for “this chapter”.

Subsec. (a)(5). Pub. L. 114–94, § 2001(b)(1)(D)(i), substituted “Eligible project cost parameters” for “Eligible project costs” in heading.

Subsec. (a)(5)(A). Pub. L. 114–94, § 2001(b)(1)(D)(ii)(I), substituted “subparagraph (B), a project under the TIFIA program” for “subparagraph (B), to be eligible for assistance under this chapter, a project” in introductory provisions.

Subsec. (a)(5)(A)(i). Pub. L. 114–94, § 2001(b)(1)(D)(ii)(II), added cl. (i) and struck out former cl. (i) which read as follows:

“(I) $50,000,000; or

“(II) in the case of a rural infrastructure project, $25,000,000; and”.

Subsec. (a)(5)(A)(ii). Pub. L. 114–94, § 2001(b)(1)(D)(ii)(III), struck out “assistance” after “highway”.

Subsec. (a)(5)(B). Pub. L. 114–94, § 2001(b)(1)(D)(iii), substituted “Exceptions” for “Intelligent transportation system projects” in heading, designated existing provisions as cl. (i), inserted cl. (i) heading, and added cls. (ii) to (iv).

Subsec. (a)(9). Pub. L. 114–94, § 2001(b)(1)(E), substituted “the TIFIA program” for “this chapter” in introductory provisions.

Subsec. (a)(10). Pub. L. 114–94, § 2001(b)(1)(F), designated existing provisions as subpar. (A), inserted subpar. (A) heading, substituted “Except as provided in subparagraph (B), to be eligible” for “To be eligible”, “the TIFIA program” for “this chapter” in two places, and “no later than” for “not later than”, and added subpar. (B).

Subsec. (b)(2). Pub. L. 114–94, § 2001(b)(2), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “If the Secretary fully obligates funding to eligible projects in a fiscal year, and adequate funding is not available to fund a credit instrument, a project sponsor of an eligible project may elect to enter into a master credit agreement and wait until the earlier of—

“(A) the following fiscal year; and

“(B) the fiscal year during which additional funds are available to receive credit assistance.”

Subsecs. (c)(1), (e). Pub. L. 114–94, § 2001(b)(3), (4), substituted “the TIFIA program” for “this chapter”.

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section related to determination of eligibility and project selection, consisting of subsecs. (a) to (c).

2005—Pub. L. 109–59, § 1602(d), renumbered section 182 of this title as this section.

Subsec. (a). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter” in introductory provisions.

Subsec. (a)(1). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter”.

Pub. L. 109–59, § 1601(b)(1), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “The project—

“(A) shall be included in the State transportation plan required under section 135; and

“(B) at such time as an agreement to make available a Federal credit instrument is entered into under this subchapter, shall be included in the approved State transportation improvement program required under section 134.”

Subsec. (a)(2). Pub. L. 109–59, § 1601(b)(1), added par. (2) and struck out heading and text of former par. (2). Text read as follows: “A State, a local servicer identified under section 185(a), or the entity undertaking the project shall submit a project application to the Secretary.”

Subsec. (a)(3)(A). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter” in introductory provisions.

Subsec. (a)(3)(A)(i). Pub. L. 109–59, § 1601(b)(2), substituted “$50,000,000” for “$100,000,000”.

Subsec. (a)(3)(A)(ii). Pub. L. 109–59, § 1601(b)(3), substituted “33⅓” for “50”.

Subsec. (a)(3)(B). Pub. L. 109–59, § 1601(b)(4), substituted “$15,000,000” for “$30,000,000”.

Subsec. (a)(4). Pub. L. 109–59, § 1601(b)(5), substituted “The Federal credit instrument” for “Project financing” and inserted “that also secure the project obligations” before period at end.

Subsec. (b)(1). Pub. L. 109–59, § 1601(c)(1), substituted “eligibility requirements” for “eligibility criteria”.

Subsec. (b)(2)(A)(iii), (iv), (vi). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter”.

Subsec. (b)(2)(A)(viii). Pub. L. 109–59, § 1602(b)(2), inserted “and chapter 1” after “this chapter”.

Subsec. (b)(2)(B). Pub. L. 109–59, § 1601(c)(2), inserted “, which may be the Federal credit instrument,” after “obligations”.

Subsec. (c). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter” in introductory provisions.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by section 11508(d)(3) of Pub. L. 117–58 only applicable to a public-private partnership agreement entered into on or after Nov. 15, 2021, see section 11508(e) of Pub. L. 117–58, set out in a Requirements for Transportation Projects Carried Out Through Public-Private Partnerships note under section 106 of this title.

Amendment by section 12001(b)–(d), (g) of Pub. L. 117–58 effective Oct. 1, 2021, except as otherwise provided, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Pub. L. 117–58, div. A, title II, § 12002(b), Nov. 15, 2021, 135 Stat. 622, provided that: “The amendments made by this section [amending this section] shall apply with respect to any agreement for credit assistance entered into on or after the date of enactment of this Act [Nov. 15, 2021].”

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

§603. Secured loans

23 U.S.C. § 603

(a)

In General.—

(1)

Agreements.— Subject to paragraphs (2) and (3), the Secretary may enter into agreements with 1 or more obligors to make secured loans, the proceeds of which shall be used—

(A)

to finance eligible project costs of any project selected under section 602;

(B)

to refinance interim construction financing of eligible project costs of any project selected under section 602;

(C)

to refinance existing Federal credit instruments for rural infrastructure projects; or

(D)

to refinance long-term project obligations or Federal credit instruments, if the refinancing provides additional funding capacity for the completion, enhancement, or expansion of any project that—

(i)

is selected under section 602; or

(ii)

otherwise meets the requirements of section 602.

(2)

Limitation on refinancing of interim construction financing.— A loan under paragraph (1) shall not refinance interim construction financing under paragraph (1)(B)—

(A)

if the maturity of such interim construction financing is later than 1 year after the substantial completion of the project; and

(B)

later than 1 year after the date of substantial completion of the project.

(3)

Risk assessment.— Before entering into an agreement under this subsection, the Secretary, in consultation with the Director of the Office of Management and Budget, shall determine an appropriate capital reserve subsidy amount for each secured loan, taking into account each rating letter provided by an agency under section 602(b)(3)(B).

(b)

Terms and Limitations.—

(1)

In general.— A secured loan under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines to be appropriate.

(2)

Maximum amount.—

(A)

In general.— Except as provided in subparagraph (B), the amount of a secured loan under this section shall not exceed the lesser of 49 percent of the reasonably anticipated eligible project costs or if the secured loan does not receive an investment grade rating, the amount of the senior project obligations.

(B)

Rural projects fund.— In the case of a project capitalizing a rural projects fund, the maximum amount of a secured loan made to a State infrastructure bank shall be determined in accordance with section 602(a)(5)(B)(iii).

(3)

Payment.— A secured loan under this section—

(A)

shall—

(i)

be payable, in whole or in part, from—

(I)

tolls;

(II)

user fees;

(III)

payments owing to the obligor under a public-private partnership;

(IV)

other dedicated revenue sources that also secure the senior project obligations; or

(V)

in the case of a secured loan for a project capitalizing a rural projects fund, any other dedicated revenue sources available to a State infrastructure bank, including repayments from loans made by the bank for rural infrastructure projects; and

(ii)

include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and

(B)

may have a lien on revenues described in subparagraph (A), subject to any lien securing project obligations.

(4)

Interest rate.—

(A)

In general.— Except as provided in subparagraphs (B) and (C), the interest rate on a secured loan under this section shall be not less than the yield on United States Treasury securities of a similar maturity to the maturity of the secured loan on the date of execution of the loan agreement.

(B)

Rural infrastructure projects.—

(i)

In general.— The interest rate of a loan offered to a rural infrastructure project or a rural projects fund under the TIFIA program shall be at ½ of the Treasury Rate in effect on the date of execution of the loan agreement.

(ii)

Application.— The rate described in clause (i) shall only apply to any portion of a loan the subsidy cost of which is funded by amounts set aside for rural infrastructure projects and rural project funds under section 608(a)(3)(A).

(C)

Limited buydowns.— The interest rate of a secured loan under this section may not be lowered by more than the lower of—

(i)

1½ percentage points (150 basis points); or

(ii)

the amount of the increase in the interest rate.

(5)

Maturity date.—

(A)

In general.— Except as provided in subparagraphs (B) and (C), the final maturity date of the secured loan shall be the lesser of—

(i)

35 years after the date of substantial completion of the project; and

(ii)

if the useful life of the capital asset being financed is of a lesser period, the useful life of the asset.

(B)

Rural projects fund.— In the case of a project capitalizing a rural projects fund, the final maturity date of the secured loan shall not exceed 35 years after the date on which the secured loan is obligated.

(C)

Long lived assets.— In the case of a capital asset with an estimated life of more than 50 years, the final maturity date of the secured loan shall be the lesser of—

(i)

75 years after the date of substantial completion of the project; or

(ii)

75 percent of the estimated useful life of the capital asset.

(6)

Nonsubordination.—

(A)

In general.— Except as provided in subparagraph (B), the secured loan shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy, insolvency, or liquidation of the obligor.

(B)

Preexisting indenture.—

(i)

In general.— The Secretary shall waive the requirement under subparagraph (A) for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture, if—

(I)

the secured loan is rated in the A category or higher;

(II)

the secured loan is secured and payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues; and

(III)

the TIFIA program share of eligible project costs is 33 percent or less.

(ii)

Limitation.— If the Secretary waives the nonsubordination requirement under this subparagraph—

(I)

the maximum credit subsidy to be paid by the Federal Government shall be not more than 10 percent of the principal amount of the secured loan; and

(II)

the obligor shall be responsible for paying the remainder of the subsidy cost, if any.

(7)

Fees.— The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of making a secured loan under this section.

(8)

Non-federal share.— The proceeds of a secured loan under the TIFIA program may be used for any non-Federal share of project costs required under this title or chapter 53 of title 49, if the loan is repayable from non-Federal funds.

(9)

Maximum federal involvement.—

(A)

In general.— The total Federal assistance provided for a project receiving a loan under the TIFIA program shall not exceed 80 percent of the total project cost.

(B)

Rural projects fund.— A project capitalizing a rural projects fund shall satisfy subparagraph (A) through compliance with the Federal share requirement described in section 610(e)(3)(B).

(c)

Repayment.—

(1)

Schedule.— The Secretary shall establish a repayment schedule for each secured loan under this section based on—

(A)

the projected cash flow from project revenues and other repayment sources; and

(B)

the useful life of the project.

(2)

Commencement.— Scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than 5 years after the date of substantial completion of the project.

(3)

Deferred payments.—

(A)

In general.— If, at any time after the date of substantial completion of the project, the project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the secured loan, the Secretary may, subject to subparagraph (C), allow the obligor to add unpaid principal and interest to the outstanding balance of the secured loan.

(B)

Interest.— Any payment deferred under subparagraph (A) shall—

(i)

continue to accrue interest in accordance with subsection (b)(4) until fully repaid; and

(ii)

be scheduled to be amortized over the remaining term of the loan.

(C)

Criteria.—

(i)

In general.— Any payment deferral under subparagraph (A) shall be contingent on the project meeting criteria established by the Secretary.

(ii)

Repayment standards.— The criteria established pursuant to clause (i) shall include standards for reasonable assurance of repayment.

(4)

Prepayment.—

(A)

Use of excess revenues.—

(i)

In general.— Except as provided in clause (ii), any excess revenues that remain after satisfying scheduled debt service requirements on the project obligations and secured loan and all deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing project obligations may be applied annually to prepay the secured loan without penalty.

(ii)

Certain applicants.— In the case of a secured loan or other secured Federal credit instrument provided after the date of enactment of the Surface Transportation Reauthorization Act of 2021, if the obligor is a governmental entity, agency, or instrumentality, the obligor shall not be required to prepay the secured loan or other secured Federal credit instrument with any excess revenues described in clause (i) if the obligor enters into an agreement to use those excess revenues only for purposes authorized under this title or title 49.

(B)

Use of proceeds of refinancing.— The secured loan may be prepaid at any time without penalty from the proceeds of refinancing from non-Federal funding sources.

(d)

Sale of Secured Loans.—

(1)

In general.— Subject to paragraph (2), as soon as practicable after substantial completion of a project and after notifying the obligor, the Secretary may sell to another entity or reoffer into the capital markets a secured loan for the project if the Secretary determines that the sale or reoffering can be made on favorable terms.

(2)

Consent of obligor.— In making a sale or reoffering under paragraph (1), the Secretary may not change the original terms and conditions of the secured loan without the written consent of the obligor.

(e)

Loan Guarantees.—

(1)

In general.— The Secretary may provide a loan guarantee to a lender in lieu of making a secured loan under this section if the Secretary determines that the budgetary cost of the loan guarantee is substantially the same as that of a secured loan.

(2)

Terms.— The terms of a loan guarantee under paragraph (1) shall be consistent with the terms required under this section for a secured loan, except that the rate on the guaranteed loan and any prepayment features shall be negotiated between the obligor and the lender, with the consent of the Secretary.

(f)

Streamlined Application Process.—

(1)

In general.— Not later than 180 days after the date of enactment of the FAST Act, the Secretary shall make available an expedited application process or processes available at the request of entities seeking secured loans under the TIFIA program that use a set or sets of conventional terms established pursuant to this section.

(2)

Terms.— In establishing the streamlined application process required by this subsection, the Secretary may include terms commonly included in prior credit agreements and allow for an expedited application period, including—

(A)

the secured loan is in an amount of not greater than $100,000,000;

(B)

the secured loan is secured and payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge, tax increment financing, or a system-backed pledge of project revenues; and

(C)

repayment of the loan commences not later than 5 years after disbursement.

(3)

Additional terms for expedited decisions.—

(A)

In general.— Not later than 120 days after the date of enactment of this paragraph, the Secretary shall implement an expedited decision timeline for public agency borrowers seeking secured loans that meet—

(i)

the terms under paragraph (2); and

(ii)

the additional criteria described in subparagraph (B).

(B)

Additional criteria.— The additional criteria referred to in subparagraph (A)(ii) are the following:

(i)

The secured loan is made on terms and conditions that substantially conform to the conventional terms and conditions established by the National Surface Transportation Innovative Finance Bureau.

(ii)

The secured loan is rated in the A category or higher.

(iii)

The TIFIA program share of eligible project costs is 33 percent or less.

(iv)

The applicant demonstrates a reasonable expectation that the contracting process for the project can commence by not later than 90 days after the date on which a Federal credit instrument is obligated for the project under the TIFIA program.

(v)

The project has received a categorical exclusion, a finding of no significant impact, or a record of decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

(C)

Written notice.— The Secretary shall provide to an applicant seeking a secured loan under the expedited decision process under this paragraph a written notice informing the applicant whether the Secretary has approved or disapproved the application by not later than 180 days after the date on which the Secretary submits to the applicant a letter indicating that the National Surface Transportation Innovative Finance Bureau has commenced the creditworthiness review of the project.

Notes, amendments, and revision history

(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 245, § 183; renumbered § 603 and amended Pub. L. 109–59, title I, §§ 1601(d), 1602(b)(3), (5), (d), Aug. 10, 2005, 119 Stat. 1240, 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 614; Pub. L. 114–94, div. A, title II, § 2001(c), Dec. 4, 2015, 129 Stat. 1442; Pub. L. 117–58, div. A, title II, § 12001(e), (f), (h), Nov. 15, 2021, 135 Stat. 619.)

Editorial Notes

References in Text

The date of enactment of the Surface Transportation Reauthorization Act of 2021 and the date of enactment of this paragraph, referred to in subsecs. (c)(4)(A)(ii) and (f)(3)(A), are the date of enactment of div. A of Pub. L. 117–58, which was approved Nov. 15, 2021.

The date of enactment of the FAST Act, referred to in subsec. (f)(1), is the date of enactment of Pub. L. 114–94, which was approved Dec. 4, 2015.

The National Environmental Policy Act of 1969, referred to in subsec. (f)(3)(B)(v), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

Amendments

2021—Subsec. (b)(5)(A). Pub. L. 117–58, § 12001(e)(1), substituted “subparagraphs (B) and (C)” for “subparagraph (B)” in introductory provisions.

Subsec. (b)(5)(C). Pub. L. 117–58, § 12001(e)(2), added subpar. (C).

Subsec. (c)(4)(A). Pub. L. 117–58, § 12001(f), designated existing provisions as cl. (i), inserted heading, substituted “Except as provided in clause (ii), any excess” for “Any excess”, and added cl. (ii).

Subsec. (f)(3). Pub. L. 117–58, § 12001(h), added par. (3).

2015—Subsec. (a)(2). Pub. L. 114–94, § 2001(c)(1), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “A loan under paragraph (1) shall not refinance interim construction financing under paragraph (1)(B) later than 1 year after the date of substantial completion of the project.”

Subsec. (b)(2). Pub. L. 114–94, § 2001(c)(2)(A), designated existing provisions as subpar. (A), inserted subpar. (A) heading, substituted “Except as provided in subparagraph (B), the amount of” for “The amount of”, and added subpar. (B).

Subsec. (b)(3)(A)(i)(V). Pub. L. 114–94, § 2001(c)(2)(B), added subcl. (V).

Subsec. (b)(4)(B)(i). Pub. L. 114–94, § 2001(c)(2)(C)(i), substituted “or a rural projects fund under the TIFIA program” for “under this chapter”.

Subsec. (b)(4)(B)(ii). Pub. L. 114–94, § 2001(c)(2)(C)(ii), inserted “and rural project funds” after “rural infrastructure projects”.

Subsec. (b)(5). Pub. L. 114–94, § 2001(c)(2)(D), designated existing provisions as subpar. (A) and inserted heading, substituted “Except as provided in subparagraph (B), the final” for “The final”, redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), and added subpar. (B).

Subsec. (b)(8). Pub. L. 114–94, § 2001(c)(2)(E), substituted “the TIFIA program” for “this chapter”.

Subsec. (b)(9). Pub. L. 114–94, § 2001(c)(2)(F), designated existing provisions as subpar. (A) and inserted heading, substituted “The total Federal assistance provided for a project receiving a loan under the TIFIA program” for “The total Federal assistance provided on a project receiving a loan under this chapter”, and added subpar. (B).

Subsec. (f). Pub. L. 114–94, § 2001(c)(3), added subsec. (f).

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section related to secured loans.

2005—Pub. L. 109–59, § 1602(d), renumbered section 183 of this title as this section.

Subsec. (a)(1). Pub. L. 109–59, § 1601(d)(1), in subpars. (A) and (B) inserted “of any project selected under section 602” after “costs”, added subpar. (C), and struck out concluding provisions which read as follows: “of any project selected under section 182.”

Subsec. (a)(3). Pub. L. 109–59, § 1602(b)(3), substituted “602(b)(2)(B)” for “182(b)(2)(B)”.

Subsec. (a)(4). Pub. L. 109–59, § 1601(d)(2), substituted “The execution” for “The funding” and struck out before period at end “, except that—

“(A) the Secretary may fund an amount of the secured loan not to exceed the capital reserve subsidy amount determined under paragraph (3) prior to the obligations receiving an investment-grade rating; and

“(B) the Secretary may fund the remaining portion of the secured loan only after the obligations have received an investment-grade rating by at least 1 rating agency”.

Subsec. (b)(2). Pub. L. 109–59, § 1601(d)(3)(A), inserted “the lesser of” before “33 percent” and “or, if the secured loan does not receive an investment grade rating, the amount of the senior project obligations” before period at end.

Subsec. (b)(3)(A)(i). Pub. L. 109–59, § 1601(d)(3)(B), inserted “that also secure the senior project obligations” after “sources”.

Subsec. (b)(4). Pub. L. 109–59, § 1601(d)(3)(C), struck out “marketable” before “United States Treasury securities”.

Subsec. (b)(8). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter”.

Subsec. (c)(3) to (5). Pub. L. 109–59, § 1601(d)(4), redesignated pars. (4) and (5) as (3) and (4), respectively, in par. (3)(A), struck out “during the 10 years” after “at any time”, in par. (3)(B)(ii), substituted “loan” for “loan beginning not later than 10 years after the date of substantial completion of the project in accordance with paragraph (1)”, and struck out heading and text of former par. (3). Text read as follows: “The sources of funds for scheduled loan repayments under this section shall include tolls, user fees, or other dedicated revenue sources.”

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

§604. Lines of credit

23 U.S.C. § 604

(a)

In General.—

(1)

Agreements.— Subject to paragraphs (2) through (4), the Secretary may enter into agreements to make available to 1 or more obligors lines of credit in the form of direct loans to be made by the Secretary at future dates on the occurrence of certain events for any project selected under section 602.

(2)

Use of proceeds.— The proceeds of a line of credit made available under this section shall be available to pay debt service on project obligations issued to finance eligible project costs, extraordinary repair and replacement costs, operation and maintenance expenses, and costs associated with unexpected Federal or State environmental restrictions.

(3)

Risk assessment.— Before entering into an agreement under this subsection, the Secretary, in consultation with the Director of the Office of Management and Budget and each rating agency providing a preliminary rating opinion letter under section 602(b)(3), shall determine an appropriate capital reserve subsidy amount for each line of credit, taking into account the rating opinion letter.

(4)

Investment-grade rating requirement.— The funding of a line of credit under this section shall be contingent on the senior obligations of the project receiving an investment-grade rating from 2 rating agencies.

(b)

Terms and Limitations.—

(1)

In general.— A line of credit under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines to be appropriate.

(2)

Maximum amounts.— The total amount of a line of credit under this section shall not exceed 33 percent of the reasonably anticipated eligible project costs.

(3)

Draws.— Any draw on a line of credit under this section shall—

(A)

represent a direct loan; and

(B)

be made only if net revenues from the project (including capitalized interest, but not including reasonably required financing reserves) are insufficient to pay the costs specified in subsection (a)(2).

(4)

Interest rate.— Except as provided in subparagraphs (B) and (C) of section 603(b)(4), the interest rate on a direct loan resulting from a draw on the line of credit shall be not less than the yield on 30-year United States Treasury securities, as of the date of execution of the line of credit agreement.

(5)

Security.— A line of credit issued under this section—

(A)

shall—

(i)

be payable, in whole or in part, from—

(I)

tolls;

(II)

user fees;

(III)

payments owing to the obligor under a public-private partnership; or

(IV)

other dedicated revenue sources that also secure the senior project obligations; and

(ii)

include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and

(B)

may have a lien on revenues described in subparagraph (A), subject to any lien securing project obligations.

(6)

Period of availability.— The full amount of a line of credit under this section, to the extent not drawn upon, shall be available during the 10-year period beginning on the date of substantial completion of the project.

(7)

Rights of third-party creditors.—

(A)

Against federal government.— A third-party creditor of the obligor shall not have any right against the Federal Government with respect to any draw on a line of credit under this section.

(B)

Assignment.— An obligor may assign a line of credit under this section to—

(i)

1 or more lenders; or

(ii)

a trustee on the behalf of such a lender.

(8)

Nonsubordination.—

(A)

In general.— Except as provided in subparagraph (B), a direct loan under this section shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy, insolvency, or liquidation of the obligor.

(B)

Pre-existing indenture.—

(i)

In general.— The Secretary shall waive the requirement of subparagraph (A) for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture, if—

(I)

the line of credit is rated in the A category or higher;

(II)

the TIFIA program loan resulting from a draw on the line of credit is payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues; and

(III)

the TIFIA program share of eligible project costs is 33 percent or less.

(ii)

Limitation.— If the Secretary waives the nonsubordination requirement under this subparagraph—

(I)

the maximum credit subsidy to be paid by the Federal Government shall be not more than 10 percent of the principal amount of the secured loan; and

(II)

the obligor shall be responsible for paying the remainder of the subsidy cost.

(9)

Fees.— The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of providing a line of credit under this section.

(10)

Relationship to other credit instruments.— A project that receives a line of credit under this section also shall not receive a secured loan or loan guarantee under section 603 in an amount that, combined with the amount of the line of credit, exceeds 49 percent of eligible project costs.

(c)

Repayment.—

(1)

Terms and conditions.— The Secretary shall establish repayment terms and conditions for each direct loan under this section based on—

(A)

the projected cash flow from project revenues and other repayment sources; and

(B)

the useful life of the asset being financed.

(2)

Timing.— All repayments of principal or interest on a direct loan under this section shall be scheduled—

(A)

to commence not later than 5 years after the end of the period of availability specified in subsection (b)(6); and

(B)

to conclude, with full repayment of principal and interest, by the date that is 25 years after the end of the period of availability specified in subsection (b)(6).

Notes, amendments, and revision history

(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 247, § 184; renumbered § 604 and amended Pub. L. 109–59, title I, §§ 1601(e), 1602(b)(4), (d), Aug. 10, 2005, 119 Stat. 1241, 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 617.)

Editorial Notes

Amendments

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section related to lines of credit.

2005—Pub. L. 109–59, § 1602(d), renumbered section 184 of this title as this section.

Subsec. (a)(1). Pub. L. 109–59, § 1602(b)(4)(A), substituted “602” for “182”.

Subsec. (a)(3). Pub. L. 109–59, § 1602(b)(4)(B), substituted “602(b)(2)(B)” for “182(b)(2)(B)”.

Subsec. (b)(2). Pub. L. 109–59, § 1601(e)(1)(A), added par. (2) and struck out heading and text of former par. (2). Text read as follows:

“(A) Total amount.—The total amount of the line of credit shall not exceed 33 percent of the reasonably anticipated eligible project costs.

“(B) 1-year draws.—The amount drawn in any 1 year shall not exceed 20 percent of the total amount of the line of credit.”

Subsec. (b)(3). Pub. L. 109–59, § 1601(e)(1)(B), substituted “but not including reasonably required financing reserves” for “, any debt service reserve fund, and any other available reserve”.

Subsec. (b)(4). Pub. L. 109–59, § 1601(e)(1)(C), struck out “marketable” before “United States Treasury securities” and substituted “date of execution of the line of credit agreement” for “date on which the line of credit is obligated”.

Subsec. (b)(5)(A)(i). Pub. L. 109–59, § 1601(e)(1)(D), inserted “that also secure the senior project obligations” after “sources”.

Subsec. (b)(6). Pub. L. 109–59, § 1601(e)(1)(E), substituted “The full amount of the line of credit, to the extent not drawn upon,” for “The line of credit”.

Subsec. (b)(10). Pub. L. 109–59, § 1602(b)(4)(C), substituted “603” for “183”.

Subsec. (c)(2). Pub. L. 109–59, § 1601(e)(2)(A), struck out “scheduled” before “repayments”, inserted “be scheduled to” after “shall”, and substituted “to conclude, with full repayment of principal and interest,” for “be fully repaid, with interest,”.

Subsec. (c)(3). Pub. L. 109–59, § 1601(e)(2)(B), struck out heading and text of par. (3). Text read as follows: “The sources of funds for scheduled loan repayments under this section shall include tolls, user fees, or other dedicated revenue sources.”

Statutory Notes and Related Subsidiaries

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

§605. Program administration

23 U.S.C. § 605

(a)

Requirement.— The Secretary shall establish a uniform system to service the Federal credit instruments made available under the TIFIA program.

(b)

Fees.— The Secretary may collect and spend fees, contingent on authority being provided in appropriations Acts, at a level that is sufficient to cover—

(1)

the costs of services of expert firms retained pursuant to subsection (d); and

(2)

all or a portion of the costs to the Federal Government of servicing the Federal credit instruments.

(c)

Servicer.—

(1)

In general.— The Secretary may appoint a financial entity to assist the Secretary in servicing the Federal credit instruments.

(2)

Duties.— A servicer appointed under paragraph (1) shall act as the agent for the Secretary.

(3)

Fee.— A servicer appointed under paragraph (1) shall receive a servicing fee, subject to approval by the Secretary.

(d)

Assistance From Expert Firms.— The Secretary may retain the services of expert firms, including counsel, in the field of municipal and project finance to assist in the underwriting and servicing of Federal credit instruments.

(e)

Expedited Processing.— The Secretary shall implement procedures and measures to economize the time and cost involved in obtaining approval and the issuance of credit assistance under the TIFIA program.

(f)

Assistance to Small Projects.—

(1)

Reservation of funds.— Of the funds made available to carry out the TIFIA program for each fiscal year, and after the set aside under section 608(a)(6), not less than $2,000,000 shall be made available for the Secretary to use in lieu of fees collected under subsection (b) for projects under the TIFIA program having eligible project costs that are reasonably anticipated not to equal or exceed $75,000,000.

(2)

Release of funds.— Any funds not used under paragraph (1) in a fiscal year shall be made available on October 1 of the following fiscal year to provide credit assistance to any project under the TIFIA program.

Notes, amendments, and revision history

(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 249, § 185; renumbered § 605 and amended Pub. L. 109–59, title I, §§ 1601(f), 1602(b)(5), (d), Aug. 10, 2005, 119 Stat. 1241, 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 619; Pub. L. 114–94, div. A, title II, § 2001(d), Dec. 4, 2015, 129 Stat. 1443; Pub. L. 117–58, div. A, title II, § 12001(i)(2), Nov. 15, 2021, 135 Stat. 621.)

Editorial Notes

Amendments

2021—Subsec. (f)(1). Pub. L. 117–58 substituted “section 608(a)(6)” for “section 608(a)(5)”.

2015—Subsecs. (a), (e). Pub. L. 114–94, § 2001(d)(1), substituted “the TIFIA program” for “this chapter”.

Subsec. (f). Pub. L. 114–94, § 2001(d)(2), added subsec. (f).

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section related to program administration, consisting of subsecs. (a) to (d).

2005—Pub. L. 109–59, § 1602(d), renumbered section 185 of this title as this section.

Pub. L. 109–59, § 1601(f), amended section catchline and text generally, substituting provisions relating to establishment by the Secretary of a uniform system to service the Federal credit instruments made available under this subchapter for provisions authorizing a State to identify a local servicer to assist the Secretary in servicing the Federal credit instrument made available under this subchapter.

Subsec. (a). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter”.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

§606. State and local permits

23 U.S.C. § 606

The provision of credit assistance under the TIFIA program with respect to a project shall not—

(1)

relieve any recipient of the assistance of any obligation to obtain any required State or local permit or approval with respect to the project;

(2)

limit the right of any unit of State or local government to approve or regulate any rate of return on private equity invested in the project; or

(3)

otherwise supersede any State or local law (including any regulation) applicable to the construction or operation of the project.

Notes, amendments, and revision history

(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 249, § 186; renumbered § 606 and amended Pub. L. 109–59, title I, § 1602(b)(5), (d), Aug. 10, 2005, 119 Stat. 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 620; Pub. L. 114–94, div. A, title II, § 2001(e), Dec. 4, 2015, 129 Stat. 1444.)

Editorial Notes

Amendments

2015—Pub. L. 114–94 substituted “the TIFIA program” for “this chapter” in introductory provisions.

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section read as follows: “The provision of financial assistance under this chapter with respect to a project shall not—

“(1) relieve any recipient of the assistance of any obligation to obtain any required State or local permit or approval with respect to the project;

“(2) limit the right of any unit of State or local government to approve or regulate any rate of return on private equity invested in the project; or

“(3) otherwise supersede any State or local law (including any regulation) applicable to the construction or operation of the project.”

2005—Pub. L. 109–59, § 1602(d), renumbered section 186 of this title as this section.

Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter” in introductory provisions.

Statutory Notes and Related Subsidiaries

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

§607. Regulations

23 U.S.C. § 607

The Secretary may promulgate such regulations as the Secretary determines to be appropriate to carry out the TIFIA program.

Notes, amendments, and revision history

(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 249, § 187; renumbered § 607 and amended Pub. L. 109–59, title I, § 1602(b)(5), (d), Aug. 10, 2005, 119 Stat. 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 620; Pub. L. 114–94, div. A, title II, § 2001(f), Dec. 4, 2015, 129 Stat. 1444.)

Editorial Notes

Amendments

2015—Pub. L. 114–94 substituted “the TIFIA program” for “this chapter”.

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section read as follows: “The Secretary may issue such regulations as the Secretary determines appropriate to carry out this chapter.”

2005—Pub. L. 109–59, § 1602(d), renumbered section 187 of this title as this section.

Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter”.

Statutory Notes and Related Subsidiaries

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

§608. Funding

23 U.S.C. § 608

(a)

Funding.—

(1)

Spending and borrowing authority.— Spending and borrowing authority for a fiscal year to enter into Federal credit instruments shall be promptly apportioned to the Secretary on a fiscal-year basis.

(2)

Reestimates.— If the subsidy cost of a Federal credit instrument is reestimated, the cost increase or decrease of the reestimate shall be borne by, or benefit, the general fund of the Treasury, consistent with section 504(f) of the Congressional Budget Act of 1974 (2 U.S.C. 661c(f)).

(3)

Rural set-aside.—

(A)

In general.— Of the total amount of funds made available to carry out the TIFIA program for each fiscal year, not more than 10 percent shall be set aside for rural infrastructure projects or rural projects funds.

(B)

Reobligation.— Any amounts set aside under subparagraph (A) that remain unobligated by June 1 of the fiscal year for which the amounts were set aside shall be available for obligation by the Secretary on projects other than rural infrastructure projects or rural projects funds.

(4)

Limitation for certain projects.—

(A)

Transit-oriented development projects.— For each fiscal year, the Secretary may use to carry out projects described in section 601(a)(12)(E) not more than 15 percent of the amounts made available to carry out the TIFIA program for that fiscal year.

(B)

Airport-related projects.— The Secretary may use to carry out projects described in section 601(a)(12)(G)—

(i)

for each fiscal year, not more than 15 percent of the amounts made available to carry out the TIFIA program under the Surface Transportation Reauthorization Act of 2021 for that fiscal year; and

(ii)

for the period of fiscal years 2022 through 2026, not more than 15 percent of the unobligated carryover balances (as of October 1, 2021).

(5)

Availability.— Amounts made available to carry out the TIFIA program shall remain available until expended.

(6)

Administrative costs.— Of the amounts made available to carry out the TIFIA program, the Secretary may use not more than $10,000,000 for each of fiscal years 2022 through 2026 for the administration of the TIFIA program.

(b)

Contract Authority.—

(1)

In general.— Notwithstanding any other provision of law, execution of a term sheet by the Secretary of a Federal credit instrument that uses amounts made available under the TIFIA program shall impose on the United States a contractual obligation to fund the Federal credit investment.

(2)

Availability.— Amounts made available to carry out the TIFIA program for a fiscal year shall be available for obligation on October 1 of the fiscal year.

Notes, amendments, and revision history

(Added and amended Pub. L. 105–178, title I, § 1503(a), (c), June 9, 1998, 112 Stat. 249, § 188; Pub. L. 105–206, title IX, § 9007(a), July 22, 1998, 112 Stat. 849; Pub. L. 108–88, § 5(a)(10), Sept. 30, 2003, 117 Stat. 1115; Pub. L. 108–202, § 5(a)(10), Feb. 29, 2004, 118 Stat. 481; Pub. L. 108–224, § 4(a)(10), Apr. 30, 2004, 118 Stat. 629; Pub. L. 108–263, § 4(a)(10), June 30, 2004, 118 Stat. 700; Pub. L. 108–280, § 4(a)(10), July 30, 2004, 118 Stat. 879; Pub. L. 108–310, § 5(a)(10), Sept. 30, 2004, 118 Stat. 1149; Pub. L. 109–14, § 4(a)(10), May 31, 2005, 119 Stat. 327; Pub. L. 109–20, § 4(a)(10), July 1, 2005, 119 Stat. 348; Pub. L. 109–35, § 4(a)(10), July 20, 2005, 119 Stat. 381; Pub. L. 109–37, § 4(a)(10), July 22, 2005, 119 Stat. 396; Pub. L. 109–40, § 4(a)(10), July 28, 2005, 119 Stat. 413; renumbered § 608 and amended Pub. L. 109–59, title I, §§ 1601(g), 1602(b)(5), (d), Aug. 10, 2005, 119 Stat. 1242, 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 620; Pub. L. 114–94, div. A, title II, § 2001(g), Dec. 4, 2015, 129 Stat. 1444; Pub. L. 117–58, div. A, title II, § 12001(i)(1), Nov. 15, 2021, 135 Stat. 620.)

Editorial Notes

References in Text

The Surface Transportation Reauthorization Act of 2021, referred to in subsec. (a)(4)(B)(i), is Pub. L. 117–58, div. A, § 10001, Nov. 15, 2021, 135 Stat. 443. For complete classification of this Act to the Code, see Short Title of 2021 Amendment note set out under section 101 of this title and Tables.

Amendments

2021—Subsec. (a)(4), (5). Pub. L. 117–58, § 12001(i)(1)(A), (B), added par. (4) and redesignated former par. (4) as (5). Former par. (5) redesignated (6).

Subsec. (a)(6). Pub. L. 117–58, § 12001(i)(1)(A), (C), redesignated par. (5) as (6), struck it out, and added a new par. (6). Prior to amendment, text read as follows: “Of the amounts made available to carry out the TIFIA program, the Secretary may use not more than $6,875,000 for fiscal year 2016, $7,081,000 for fiscal year 2017, $7,559,000 for fiscal year 2018, $8,195,000 for fiscal year 2019, and $8,441,000 for fiscal year 2020 for the administration of the TIFIA program.”

2015—Pub. L. 114–94, § 2001(g)(1), substituted “the TIFIA program” for “this chapter” wherever appearing.

Subsec. (a)(2). Pub. L. 114–94, § 2001(g)(2)(A), inserted “of” after “504(f)”.

Subsec. (a)(3)(A), (B). Pub. L. 114–94, § 2001(g)(2)(B), inserted “or rural projects funds” after “rural infrastructure projects”.

Subsec. (a)(4). Pub. L. 114–94, § 2001(g)(2)(C), redesignated par. (5) as (4) and struck out former par. (4) which related to redistribution of authorized funding.

Subsec. (a)(5). Pub. L. 114–94, § 2001(g)(2)(D), added par. (5). Former par. (5) redesignated (4).

Subsec. (a)(6). Pub. L. 114–94, § 2001(g)(2)(C), struck out par. (6). Text read as follows: “Of the amounts made available to carry out this chapter, the Secretary may use not more than 0.50 percent for each fiscal year for the administration of this chapter.”

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section related to funding for fiscal years 2005 through 2009 and contract authority.

2005—Pub. L. 109–59, § 1602(d), renumbered section 188 of this title as this section.

Pub. L. 109–59, § 1601(g), reenacted section catchline without change and amended text generally, substituting provisions relating to funding for fiscal years 2005 through 2009 and contract authority, consisting of subsecs. (a) and (b), for provisions relating to funding for fiscal years 1999 through 2004 and for the period of Oct. 1, 2004, through July 30, 2005, contract authority, and limitations on credit amounts, consisting of subsecs. (a) to (c).

Subsec. (a)(1). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter”.

Subsec. (a)(1)(G). Pub. L. 109–40, § 4(a)(10)(A), added subpar. (G) and struck out former subpar. (G) which read as follows: “$106,849,340 for the period of October 1, 2004, through July 27, 2005.”

Pub. L. 109–37, § 4(a)(10)(A), added subpar. (G) and struck out former subpar. (G) which read as follows: “$105,300,000 for the period of October 1, 2004, through July 21, 2005.”

Pub. L. 109–35, § 4(a)(10)(A), added subpar. (G) and struck out former subpar. (G) which read as follows: “$104,000,000 for the period of October 1, 2004, through July 19, 2005.”

Pub. L. 109–20, § 4(a)(10)(A), added subpar. (G) and struck out former subpar. (G) which read as follows: “$97,500,000 for the period of October 1, 2004, through June 30, 2005.”

Pub. L. 109–14, § 4(a)(10)(A), added subpar. (G) and struck out former subpar. (G) which read as follows: “$86,666,667 for the period of October 1, 2004, through May 31, 2005.”

Subsec. (a)(2). Pub. L. 109–40, § 4(a)(10)(B), substituted “$1,660,000 for the period of October 1, 2004, through July 30, 2005” for “$1,643,836 for the period of October 1, 2004, through July 27, 2005”.

Pub. L. 109–37, § 4(a)(10)(B), substituted “$1,643,836 for the period of October 1, 2004, through July 27, 2005” for “$1,620,000 for the period of October 1, 2004, through July 21, 2005”.

Pub. L. 109–35, § 4(a)(10)(B), substituted “$1,620,000 for the period of October 1, 2004, through July 21, 2005” for “$1,600,000 for the period of October 1, 2004, through July 19, 2005”.

Pub. L. 109–20, § 4(a)(10)(B), substituted “$1,600,000 for the period of October 1, 2004, through July 19, 2005” for “$1,500,000 for the period of October 1, 2004, through June 30, 2005”.

Pub. L. 109–14, § 4(a)(10)(B), substituted “$1,500,000 for the period of October 1, 2004, through June 30, 2005” for “$1,333,333 for the period of October 1, 2004, through May 31, 2005”.

Subsec. (a)(3). Pub. L. 109–59, § 1602(b)(5), substituted “administration of this chapter” for “administration of this subchapter”.

Subsec. (b)(1). Pub. L. 109–59, § 1602(b)(5), substituted “this chapter” for “this subchapter”.

Subsec. (c). Pub. L. 109–40, § 4(a)(10)(C), substituted “$2,158,000,000” for “$2,136,986,800” in item relating to fiscal year 2005 in table.

Pub. L. 109–37, § 4(a)(10)(C), substituted “$2,136,986,800” for “$2,106,000,000” in item relating to fiscal year 2005 in table.

Pub. L. 109–35, § 4(a)(10)(C), substituted “$2,106,000,000” for “$2,080,000,000” in item relating to fiscal year 2005 in table.

Pub. L. 109–20, § 4(a)(10)(C), substituted “$2,080,000,000” for “$1,950,000,000” in item relating to fiscal year 2005 in table.

Pub. L. 109–14, § 4(a)(10)(C), substituted “$1,950,000,000” for “$1,733,333,333” in item relating to fiscal year 2005 in table.

2004—Subsec. (a)(1)(F). Pub. L. 108–280, § 4(a)(10)(A), added subpar. (F) and struck out former subpar. (F) which read as follows: “$116,666,667 for the period of October 1, 2003, through July 31, 2004.”

Pub. L. 108–263, § 4(a)(10)(A), added subpar. (F) and struck out former subpar. (F) which read as follows: “$105,000,000 for the period of October 1, 2003, through June 30, 2004.”

Pub. L. 108–224, § 4(a)(10)(A), added subpar. (F) and struck out former subpar. (F) which read as follows: “$81,666,666 for the period of October 1, 2003, through April 30, 2004.”

Pub. L. 108–202, § 5(a)(10)(A), added subpar. (F) and struck out former subpar. (F) which read as follows: “$58,333,333 for the period of October 1, 2003, through February 29, 2004.”

Subsec. (a)(1)(G). Pub. L. 108–310, § 5(a)(10)(A), added subpar. (G).

Subsec. (a)(2). Pub. L. 108–310, § 5(a)(10)(B), inserted “and $1,333,333 for the period of October 1, 2004, through May 31, 2005” before period at end.

Pub. L. 108–280, § 4(a)(10)(B), struck out “2003 and $1,666,667 for the period of October 1, 2003, through July 31,” before “2004.”

Pub. L. 108–263, § 4(a)(10)(B), substituted “$1,666,667 for the period of October 1, 2003, through July 31, 2004” for “$1,500,000 for the period of October 1, 2003, through June 30, 2004”.

Pub. L. 108–224, § 4(a)(10)(B), substituted “$1,500,000 for the period of October 1, 2003, through June 30, 2004” for “$1,166,667 for the period of October 1, 2003, through April 30, 2004”.

Pub. L. 108–202, § 5(a)(10)(B), substituted “$1,166,667 for the period of October 1, 2003, through April 30, 2004” for “$833,333 for the period of October 1, 2003, through February 29, 2004”.

Subsec. (c). Pub. L. 108–310, § 5(a)(10)(C), substituted “2005” for “2004” in introductory provisions and inserted item in table relating to fiscal year 2005.

Pub. L. 108–280, § 4(a)(10)(C), substituted “$2,600,000,000” for “$2,166,666,667” in item relating to fiscal year 2004 in table.

Pub. L. 108–263, § 4(a)(10)(C), substituted “$2,166,666,667” for “$1,950,000,000” in item relating to fiscal year 2004 in table.

Pub. L. 108–224, § 4(a)(10)(C), substituted “$1,950,000,000” for “$1,516,666,667” in item relating to fiscal year 2004 in table.

Pub. L. 108–202, § 5(a)(10)(C), substituted “$1,516,666,667” for “$1,083,333,333” in item relating to fiscal year 2004 in table.

2003—Subsec. (a)(1)(F). Pub. L. 108–88, § 5(a)(10)(A), added subpar. (F).

Subsec. (a)(2). Pub. L. 108–88, § 5(a)(10)(B), inserted “and $833,333 for the period of October 1, 2003, through February 29, 2004” after “2003”.

Subsec. (c). Pub. L. 108–88, § 5(a)(10)(C), substituted “2004” for “2003” and inserted item in table relating to fiscal year 2004.

1998—Subsec. (a)(2). Pub. L. 105–178, § 1503(c)(1), as added by Pub. L. 105–206, § 9007(a), substituted “1999” for “1998”.

Subsec. (c). Pub. L. 105–178, § 1503(c)(2), as added by Pub. L. 105–206, § 9007(a), substituted “1999” for “1998” in introductory provisions, and substituted table for former table which read as follows:

“Fiscal year:	Maximum amount of credit:
1998	$1,200,000,000
1999	$1,200,000,000
2000	$1,800,000,000
2001	$1,800,000,000
2002	$2,300,000,000
2003	$2,300,000,000.”

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

Effective Date of 1998 Amendment

Title IX of Pub. L. 105–206 effective simultaneously with enactment of Pub. L. 105–178 and to be treated as included in Pub. L. 105–178 at time of enactment, and provisions of Pub. L. 105–178, as in effect on day before July 22, 1998, that are amended by title IX of Pub. L. 105–206 to be treated as not enacted, see section 9016 of Pub. L. 105–206, set out as a note under section 101 of this title.

§609. Reports to Congress

23 U.S.C. § 609

(a)

In General.— On June 1, 2012, and every 2 years thereafter, the Secretary shall submit to Congress a report summarizing the financial performance of the projects that are receiving, or have received, assistance under the TIFIA program, including a recommendation as to whether the objectives of the TIFIA program are best served by—

(1)

continuing the program under the authority of the Secretary;

(2)

establishing a Federal corporation or federally sponsored enterprise to administer the program; or

(3)

phasing out the program and relying on the capital markets to fund the types of infrastructure investments assisted by the TIFIA program without Federal participation.

(b)

Application Process Report.—

(1)

In general.— Not later than December 1, 2012, and annually thereafter, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report that includes a list of all of the letters of interest and applications received from project sponsors for assistance under the TIFIA program during the preceding fiscal year.

(2)

Inclusions.—

(A)

In general.— Each report under paragraph (1) shall include, at a minimum, a description of, with respect to each letter of interest and application included in the report—

(i)

the date on which the letter of interest or application was received;

(ii)

the date on which a notification was provided to the project sponsor regarding whether the application was complete or incomplete;

(iii)

the date on which a revised and completed application was submitted (if applicable);

(iv)

the date on which a notification was provided to the project sponsor regarding whether the project was approved or disapproved; and

(v)

if the project was not approved, the reason for the disapproval.

(B)

Correspondence.— Each report under paragraph (1) shall include copies of any correspondence provided to the project sponsor in accordance with section 602(d).

(c)

Status Reports.—

(1)

In general.— The Secretary shall publish on the website for the TIFIA program—

(A)

on a monthly basis, a current status report on all submitted letters of interest and applications received for assistance under the TIFIA program; and

(B)

on a quarterly basis, a current status report on all approved applications for assistance under the TIFIA program.

(2)

Inclusions.— Each monthly and quarterly status report under paragraph (1) shall include, at a minimum, with respect to each project included in the status report—

(A)

the name of the party submitting the letter of interest or application;

(B)

the name of the project;

(C)

the date on which the letter of interest or application was received;

(D)

the estimated project eligible costs;

(E)

the type of credit assistance sought; and

(F)

the anticipated fiscal year and quarter for closing of the credit assistance.

Notes, amendments, and revision history

(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 250, § 189; renumbered § 609 and amended Pub. L. 109–59, title I, §§ 1601(h), 1602(d), Aug. 10, 2005, 119 Stat. 1242, 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 621; Pub. L. 114–94, div. A, title II, § 2001(h), Dec. 4, 2015, 129 Stat. 1444; Pub. L. 117–58, div. A, title II, § 12001(j), Nov. 15, 2021, 135 Stat. 621.)

Editorial Notes

Amendments

2021—Subsec. (c). Pub. L. 117–58 added subsec. (c).

2015—Pub. L. 114–94 substituted “the TIFIA program” for “this chapter (other than section 610)” wherever appearing.

2012—Pub. L. 112–141 amended section generally. Prior to amendment, section read as follows: “On June 1, 2006, and every 2 years thereafter, the Secretary shall submit to Congress a report summarizing the financial performance of the projects that are receiving, or have received, assistance under this chapter (other than section 610), including a recommendation as to whether the objectives of this chapter (other than section 610) are best served—

“(1) by continuing the program under the authority of the Secretary;

“(2) by establishing a Government corporation or Government-sponsored enterprise to administer the program; or

“(3) by phasing out the program and relying on the capital markets to fund the types of infrastructure investments assisted by this chapter (other than section 610) without Federal participation.”

2005—Pub. L. 109–59, § 1602(d), renumbered section 189 of this title as this section.

Pub. L. 109–59, § 1601(h), substituted “Reports” for “Report” in section catchline, “On June 1, 2006, and every 2 years thereafter,” for “Not later than 4 years after the date of enactment of this subchapter,” in introductory provisions, and “chapter (other than section 610)” for “subchapter” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.