Unlike elsewhere[xxxi] in the world, the United States does not have a national bank dedicated to funding infrastructure projects. However, legislation introduced in 2007 is starting to gain traction and the US National Infrastructure Bank (NIB) may soon become reality. Similar to the Federal Deposit Insurance Corporation (FDIC), the NIB would leverage private dollars to invest in and help improve the nation's infrastructure, internet, smart grid, broadband network, and schools.
For transportation projects, the Transportation Infrastructure Finance and Innovation Act (TIFIA) operates in a similar manner to an infrastructure bank. According to the government, TIFIA provides a maximum of 33% of eligible project costs through Federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit to finance surface transportation projects of national and regional significance. TIFIA credit assistance provides improved access to capital markets, flexible repayment terms, and potentially more favorable interest rates than can be found in private capital markets for similar instruments. TIFIA can help advance qualified, large-scale projects that otherwise might be delayed or deferred because of size, complexity, or uncertainty over the timing of revenues. Many surface transportation projects-highway, transit, railroad, intermodal freight, and port access-are eligible for assistance. Each dollar of Federal funds can provide up to $10 in TIFIA credit assistance and leverage $30 in transportation infrastructure investment.[xxxii]
While there is no National Infrastructure Bank yet, states are starting to develop their own banks dedicated to infrastructure. California has the Infrastructure and Economic Development Bank (I-Bank). The bank's mission is "to finance public infrastructure and private development that promote economic growth, revitalize communities and enhance quality of life for Californians. The I-Bank has extremely broad statutory powers to issue revenue bonds, make loans and provide credit enhancements for a wide variety of infrastructure and economic development projects and other government purposes. As we approach $30 billion in various financings, we continue to be motivated by the financing challenges faced by infrastructure projects throughout our State."