• DOT has reversed a long-standing policy that capped Transportation Infrastructure Finance and Innovation Act (TIFIA) assistance for many transportation infrastructure projects.

• Eligible projects may now receive TIFIA secured loans up to the statutory maximum of 49 percent of eligible costs, a significant increase from the previous cap of 33 percent.

On July 7, 2025, the U.S. Department of Transportation (DOT) announced an update to its policy for the TIFIA loan program. The revised policy allows all eligible transportation infrastructure projects to finance up to 49 percent of eligible costs through the program, a notable shift from the previous limit of 33 percent for many projects.

TIFIA is a powerful financing tool for project sponsors. Administered by the DOT’s Build America Bureau, the program provides federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit for surface transportation projects of national and regional significance. TIFIA assistance offers improved access to capital markets, flexible repayment terms, and more favorable interest rates than those typically available in private markets.

Projects eligible for TIFIA financing include transit systems, bicycle and pedestrian infrastructure, intercity passenger bus or rail facilities and vehicles, transit-oriented development, intelligent transportation systems, and public-private partnerships. Public or private entities seeking to finance, design, construct, own, or operate an eligible surface transportation project may apply for TIFIA credit assistance. These entities may include state departments of transportation, local governments, transit agencies, special authorities, special districts, railroad companies, and private firms.

While the statutory cap for TIFIA secured loans is 49 percent of eligible project costs, DOT has historically taken a conservative approach to credit risk, limiting many loans to 33 percent of eligible project costs as a policy matter. Previously, the statutory maximum was available only for specific categories, including certain transit and Transit-Oriented Development projects and those funded under the TIFIA Rural Projects Initiative. Under the new policy, all eligible projects can capitalize on TIFIA’s assistance to the maximum extent allowable under the statute.
Kaplan Kirsch has extensive experience with TIFIA and DOT’s other federal infrastructure financing programs administered by the Build America Bureau—namely, the Railroad Rehabilitation and Improvement Financing (RRIF) and private activity bonds (PABs) program. The firm has represented clients on projects using or pursuing TIFIA financing across the country, including rail and transit, transit-oriented development, highway, and airport related projects. In addition, Partners John Putnam and Subash Iyer previously oversaw all legal matters for the Build America Bureau’s financing programs when they served at DOT.

Beyond federal financing programs, Kaplan Kirsch brings deep expertise in development-related infrastructure financing, including bank finance, private placements, tax increment financing, and special districts.

Please contact John Putnam, Subash Iyer, Allison Ishihara Fultz, Ayelet Hirschkorn, Chuck Spitulnik, Christian Alexander, Casey Morris, or Grant Glovin with questions.