Under the federal system of government in the United States, the Federal government provides funding for highway and transit projects, but these projects are owned and operated at the state or local level.59 For this reason, express authorization to engage in a PPP for a particular transportation project has to be provided by the relevant state and/or local legislative authority. Since the 2004 Report eight states have enacted legislation authorizing PPPs for highways and transit projects.
While the Federal government's role is generally limited to providing funding for surface transportation projects, the Federal government has been actively encouraging and facilitating PPPs through Federal programs, including credit assistance programs. The Federal government has provided this support from programs that existed prior to the 2004 Report, but also from programs that were enacted in the most recent surface transportation reauthorization bill, the 2005 Safe, Accountable, Flexible, Efficient, Transportation Equity Act: A Legacy for Users ("SAFETEA-LU").
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