The Build America Bureau is now open for business! Citizens, public officials and taxpayers who have watched this program develop have high hopes for what can result.
The bureau falls under supervision of the U.S. Department of Transportation (USDOT) and the objective is to provide as much assistance as possible to government entities with long-overdue infrastructure projects. The bureau is designed to be a one-stop shop for governors and departments of transportation and to encourage them to utilize federal programs, assistance and expertise. The bureau plans to streamline credit opportunities and grants and also offer advice related to innovative and alternative sources of funding.
A number of agencies are involved and available to provide assistance in numerous ways. Support related to loans, including the $800 million FASTLANE grant program, will be available. Expertise, best practices, technical guidance and partnership counseling will be offered. The overall effort signals U.S. Transportation Secretary Anthony Foxx’s belief in and support of collaboration, innovation and public-private partnerships. One aspect of the bureau will be to show project sponsors how to access private capital through public-private partnerships (P3s/PPPs).
The often lengthy and cumbersome process of applying for federal funding and the red tape that accompanies it have caused delays that discouraged the engagement of private-sector partners in the past. The bureau hopes to make the processes for obtaining loans, grants and other financial assistance much quicker and more efficient. That’s good news for government entities short of cash and in need of alternative financing options.
The Build America Bureau will combine numerous USDOT programs so that individual applications will no longer be required when multiple funding sources are sought for projects. Included among the numerous funding options are those related to the Transportation Infrastructure Finance and Innovation Act (TIFIA), the Railroad Rehabilitation & Improvement Financing (RRIF), private activity bonds (PABs) and the Build America Transportation Investment Center (BATIC) and the FASTLANE grant programs.
The BATIC program has offered similar services for states, cities and project sponsors seeking federal loan and grant funds in the past. That assistance will continue and information related to combining loans and grants for innovative delivery methods such as P3s will be available. Additionally, technical assistance will be offered to ensure an entity is adequately prepared to pursue a project if appropriate.
There is a huge national infrastructure backlog. Critical projects have languished for years and a growing population nationwide has created an immediate need for new infrastructure. Using the expertise and federal resources available through the Build America Bureau will, hopefully, jump-start investment in numerous projects. Here’s hoping that collaborative efforts will also result between the public and private sectors and that the nation’s long-neglected infrastructure will see renewed vitality and attention.