Financing Options for Surface Transportation Projects in the United States

The deficiency of transportation facilities in the United States has originated from an uncoordinated growth of supply and demand, continued aging of current facilities, increased maintenance and rehabilitation costs, and insufficient federal and state transportation revenues as a result of inadequate fuel taxation. This deficiency has produced congestion, heavy traffic, and pollution of many varieties especially in metropolitan areas. Therefore, national and state transportation agencies are seeking solutions by working on various potential remedies. The solutions include trying to decrease the demand for new facilities by changing consumption patterns, improving public transportation, substituting fuel taxation with more sustainable fees (such as vehicle miles travelled (VMT)), and introducing innovative financing options for transportation projects, including options with access to private capital. In this paper, different financing options are introduced and their application is analysed through 12 case studies from complex transportation projects completed by state and federal agencies across the nation.