Austin and USDOT partner on $22 billion transport programme

The U.S. Department of Transportation (USDOT) and the City of Austin have announced a strategic partnership to find innovative ways to finance and deliver a US$22 billion programme of mobility improvements.

Similar partnerships have been established between USDOT and state entities, but the Emerging Projects Agreement with Austin is the first of its kind with a municipality.

“This partnership will help move projects forward to deliver benefits to the growing region, with the goal of reconnecting communities, using technology to reduce traffic and pedestrian fatalities, and retaining vulnerable local businesses and residents,” the announcement said.

Projects that could benefit include the US$7.1 billion Project Connect between the city and local transit agencies to expand and improve the public transportation network in Central Texas. The US$3.6 billion Corridor Construction Program focuses on “transformative safety and mobility improvements on several significant roadways”, including Complete Communities infrastructure.

Other projects are a US$4 billion expansion of Austin Bergstrom International Airport, a US$963 million ‘cap and stitch’ programme, and a US$250 million roadway improvements scheme.

Financing

“We are dealing with a large and complicated programme of projects that will significantly enhance transportation mobility, resiliency, affordability and safety,” said Morteza Farajian, Executive Director of USDOT’s Build America Bureau.

“To deliver this programme effectively and efficiently, we need to form a strong partnership, engage all stakeholders, use innovative approaches and best practices, and take advantage of all tools in our toolbox.”

The Build America Bureau and Austin officials will engage local, state, federal and private stakeholders to review the infrastructure needs and identify potential project planning, procurement, financing and delivery solutions.

This could include low-interest rate financing such as Transportation Infrastructure Finance and Innovation Act (TIFIA) loans, Railroad Rehabilitation and Improvement Financing (RRIF), Private Activity Bonds (PABs), and technical assistance grants.

Future opportunities

The partners said the agreement is the result of a series of discussions between USDOT and Austin mobility leaders held in 2022.

“The Emerging Projects Agreement creates a great opportunity for Austin to try new ideas for accelerating mobility projects in a manner that also respects our community values,” said Austin Mayor Kirk Watson.

“I appreciate Transportation Secretary Pete Buttigieg, the Build America Bureau, and our Congressional delegation for their continued support and guidance. I hope this partnership will help us deliver critical infrastructure projects more efficiently for our taxpayers.”

Farajian said the Bureau is interested in discussing similar opportunities with other local and regional partners.