Earlier today in Minnesota, President Obama announced his proposal for a four-year transportation spending bill that would include both parts of Metro’s America Fast Forward initiative. If Congress was to vote the bill into law — and that’s a big ‘if’ — that could be a boon to Metro and other transit agencies around the nation that would have new financial tools to use when building big, pricey transportation projects.
America Fast Forward includes two components. The first is a federally-backed loan program called TIFIA that is designed to give agencies access to loans with interest rates lower than can be found on the open market.
The second part is a bond program described in the graphic below. In a nutshell: those who invest in transportation bonds receive federal tax credits instead of interest, a good way for investors to lower their tax burden and a good way for transportation agencies to save on interest costs.
The hope at Metro is to potentially use a combination of TIFIA loans, America Fast Forward bonds, some federal New Starts money (New Starts is a grant program in which the federal government matches local funds to help build big projects) and Measure R tax revenues to accelerate transit projects — in particular the second- and third-decade Measure R projects. Some of those projects: an extension of the Eastside Gold Line, the Airport Metro Connector, the South Bay Green Line Extension and the second and third phases of the Purple Line Extension.
Of course, it should be noted that President Obama’s bill proposal is just that — a proposal. Transportation bills are designed to guide spending over several years but they have been contentious in Congress in recent years. A four-year bill that expired in 2009 was temporarily extended more than 10 times before Congress in 2012 voted to approve a new two-year bill, which expires at the end of September.
So we’ll see — getting bills approved by Congress is never an easy task. Nonetheless, the fact that President Obama has included both parts of America Fast Forward into his proposal is good news for Metro and officials I spoke with here today expressed their extreme gratitude for the President’s recognition of the program.
Click here to see the entire bill proposal on the White House website.