Financing the construction, operation and maintenance of public transportation systems involves many different types of funding sources, including Federal and non Federal grants, loans, and revenue sources. Different types of financing arrangements such as leases and public private partnerships have been used to fund the procurement of materials and activities.
The U.S. Department of Transportation offers several financing programs that may be used by recipients of Federal transit funding. These include the Transportation Infrastructure Finance and Innovation Act (TIFIA) program and support to State Infrastructure Banks.
The Federal Transit Administration (FTA) provides financing eligibility within its grant programs for the use of revenue bonds, such as fare box revenue bonds and grant anticipation notes, debt service reserve financing, and capital leasing.
FTA also serves as a source of research and shared best practices for public-private partnerships, joint development efforts, and transit oriented development.
More information regarding transit finance techniques is available in the presentation, "Options for Financing Public Transportation in the United States," available in PDF and Word.
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