INNOVATIVE FINANCE BEYOND THE TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY: OBSERVATIONS FROM THE U.S. DEPARTMENT OF TRANSPORTATION

From the standpoint of transportation finance, the National Highway System Designation Act of 1995 and the Transportation Equity Act for the 21st Century (TEA-21), enacted in 1998, stand out as two of the nation's most significant pieces of legislation in recent memory. J. Basso of the U.S. Department of Transportation lists some of the major accomplishments: guaranteed funding levels and revenue-aligned budget authority; the TIFIA and Railroad Rehabilitation and Improvement Financing programs in TEA-21; State Infrastructure Banks (SIBs); GARVEE bonds; and an array of other innovative financing strategies authorized under the National Highway System Designation Act. The Department of Transportation recently performed a series of visioning sessions throughout the country during which input was solicited on where transportation programs should go through 2025. Responses covered everything from greater modal flexibility in transportation funding to enhanced opportunities for private participation in the provision and operation of transportation facilities. On the basis of this input, the Secretary of Transportation will likely issue a transportation policy architecture for the 21st century by the end of 2000; it will deal with a full range of policy matters, including finance.