January 11, 2018
ICYMI: TIFIA and WIFIA Primers
As infrastructure discussions begin for 2018, the American Action Forum released primers on the Transportation Infrastructure Finance and Innovation Act (TIFIA) and the Water Infrastructure and Finance and Innovation Act (WIFIA). The TIFIA and WIFIA programs are expected to play a key role in upcoming infrastructure talks.
Transportation Infrastructure Finance and Innovation Act (TIFIA):
“TIFIA has played a significant role in infrastructure project delivery. According to the 2016 TIFIA Report to Congress, since its existence TIFIA has financed 56 projects, including five intermodal projects, 37 highway projects, and 14 transit projects. TIFIA’s credit assistance has leveraged $82.6 billion in infrastructure investment. These projects have helped to reduce congestion on U.S. roads, valued at an annual average of approximately $1 billion, and lower greenhouse gas emissions by an average of 120,300 metric tons annually. Moreover, the TIFIA program stimulates an average of $6 billion in economic benefits and creates an average 24,300 jobs per project.”
Click here to read the TIFIA primer.
Water Infrastructure and Finance and Innovation Act (WIFIA):
“The American Water Works Association estimated that at least $1 trillion over the next 25 years is needed to upgrade and expand existing water systems to meet the water infrastructure needs of the growing U.S. population. The low risk of loans for water projects – due to the established repayment mechanism of water rates – has the potential for the EPA to generate more credit assistance than the OMB estimated. For example, the WIFIA projects selected by the EPA for FY 2017 suggest a higher than estimated direct loan leverage ratio. If WIFIA’s first year is any indication of its leverage power, then the program should be an essential part of the administration’s anticipated infrastructure bill.”
Click here to read the WIFIA primer.