Airport Alert: Lawmakers Propose to Expand TIFIA For Airports, Reinstate Bond Options to Help Finance Infrastructure
May 20, 2021
Lawmakers yesterday introduced bipartisan legislation that would expand TIFIA for more airport-related projects. Meanwhile, Republicans and Democrats are exploring other financing options that could help airports build their infrastructure projects.
TIFIA For Airports
Senators Tammy Duckworth (D-IL) and John Cornyn (R-TX) yesterday introduced the Transportation Infrastructure Finance and Innovation Act for Airports. The bill (S. 1715) would allow airports to access low interest loans and loan guarantees under the TIFIA program for PFC-eligible projects. The legislation would also require that TIFIA-funded projects comply with Buy American conditions.
Representatives John Garamendi (D-CA) and Brian Babin (R-TX) introduced a companion bill (H.R. 3340) in the House. In a joint press release, Garamendi said, "our legislation would unlock some $2 billion in low-interest federal financing for airport modernization projects across California and the nation, including climate resilience projects."
Build America Bonds
Proposals to reinstate Build America Bonds are starting to gain attention on Capitol Hill. At a Senate Finance Committee hearing earlier this week, Chairman Ron Wyden (D-OR) made a pitch for BABs and pointed out that the federal government issued $182 billion in bonds to help finance infrastructure projects during the Great Recession. Ranking Member Mike Crapo (R-ID) said BABs "can be a significant way of incentivizing private capital into our infrastructure."
Advance Refunding Bonds
Lawmakers on both sides of the aisle are also continuing to push for advance refunding bonds, which Congress eliminated in 2017. Earlier this year, Senate Commerce Committee Ranking Member Roger Wicker (R-MS), Senator Debbie Stabenow (D-MI) and others introduced the LOCAL Infrastructure Act – a bill that would restore advance refunding bonds. If enacted into law, their bipartisan proposal (S. 479) could help airports take advantage of low interest rates.
As infrastructure discussions heat up, AAAE is continuing to urge Congress and the administration to increase AIP funding and to raise the federal cap on local PFCs to help airports fund their capital projects. At the same time, we're recommending that Congress adopt proposals that would give airports more financing options.
Lawmakers yesterday introduced bipartisan legislation that would expand TIFIA for more airport-related projects. Meanwhile, Republicans and Democrats are exploring other financing options that could help airports build their infrastructure projects.
TIFIA For Airports
Senators Tammy Duckworth (D-IL) and John Cornyn (R-TX) yesterday introduced the Transportation Infrastructure Finance and Innovation Act for Airports. The bill (S. 1715) would allow airports to access low interest loans and loan guarantees under the TIFIA program for PFC-eligible projects. The legislation would also require that TIFIA-funded projects comply with Buy American conditions.
Representatives John Garamendi (D-CA) and Brian Babin (R-TX) introduced a companion bill (H.R. 3340) in the House. In a joint press release, Garamendi said, "our legislation would unlock some $2 billion in low-interest federal financing for airport modernization projects across California and the nation, including climate resilience projects."
Build America Bonds
Proposals to reinstate Build America Bonds are starting to gain attention on Capitol Hill. At a Senate Finance Committee hearing earlier this week, Chairman Ron Wyden (D-OR) made a pitch for BABs and pointed out that the federal government issued $182 billion in bonds to help finance infrastructure projects during the Great Recession. Ranking Member Mike Crapo (R-ID) said BABs "can be a significant way of incentivizing private capital into our infrastructure."
Advance Refunding Bonds
Lawmakers on both sides of the aisle are also continuing to push for advance refunding bonds, which Congress eliminated in 2017. Earlier this year, Senate Commerce Committee Ranking Member Roger Wicker (R-MS), Senator Debbie Stabenow (D-MI) and others introduced the LOCAL Infrastructure Act – a bill that would restore advance refunding bonds. If enacted into law, their bipartisan proposal (S. 479) could help airports take advantage of low interest rates.
As infrastructure discussions heat up, AAAE is continuing to urge Congress and the administration to increase AIP funding and to raise the federal cap on local PFCs to help airports fund their capital projects. At the same time, we're recommending that Congress adopt proposals that would give airports more financing options.
