Transit Improvement Bonds

TIBs is tax-preferred bonding program that will help finance the 30/10 Initiative.

Authorization will need to be secured of a new category of direct subsidy tax-preferred bonds for transit initiatives of national significance, as part of pending or future tax legislation. These TIBs could be enacted as part of a pilot program, through which the Secretary of Transportation would allocate bond issuance authority to state and local sponsors of nationally significant projects or programs of projects, such as 30/10. The federal interest subsidy would be set at 100 percent of the interest rate on the bonds and the bond principal repayment must be backed by non-federal revenue source(s), such as Measure R.