Approved by the Transportation Policy Committee on December 11, 2024
Approved by the Public Policy and Practice Committee on March 28, 2025
Adopted by the Board of Direction on July 10, 2025

Policy

The American Society of Civil Engineers (ASCE) supports innovative financing programs for transportation projects infrastructure and advocates making programs available in all states. Additionally, federal, state, and local government agencies should make every effort to develop new programs and/or additional flexibility in innovative procurement approaches. 
ASCE supports innovative mechanisms to procure and/or finance transportation projects, including, but not limited to: 
  • Metrics proportional to use such as mileage, time of day, weight, road classification, fuel source and others used separately or in combination.
  • Grant Anticipation Revenue Vehicles (GARVEEs).
  • Infrastructure Banks.
  • Public-Private Partnerships (P3s).
  • Railroad Rehabilitation and Improvement Financing (RRIF) loans.
  • Transportation Improvement Districts (TID).
  • Transportation Infrastructure Finance and Innovation Act (TIFIA) loans.
  • Transportation Special Purpose Local Options Sales Tax (TSPLOST).
  • Private Activity Bonds (PABs).
  • Tax-exempt Advanced Refunding. 

The above financing mechanisms should be considered in addition to more traditional funding means such as municipal bonds, motor vehicle registration fees, fuel taxes, electronic tolling, grants, and federal fund exchange (FFE) programs.

Issue

The sources of transportation funding are increasingly shifting from federal to state and local resources to address the continuously growing need for transportation improvements, replacements, and maintenance. Innovative finance changes in recent transportation reauthorizations and the Infrastructure Investment and Jobs Act (IIJA) of 2021 and Inflation Reduction Act of 2022 are positive developments that have advanced infrastructure throughout the country. Despite these efforts, additional investment is needed to meet outstanding needs and continue progress. While the IIJA increased funding nearly 50% compared to the previous authorization, the Federal Highway Administration’s National Highway Construction Cost Index reveals inflation increased the cost of highway construction by 68% from late 2020 through late 2023. The scope of these financing innovations should be expanded, and new programs and approaches should also be introduced. New and innovative ways to finance infrastructure for all modes of transportation infrastructure must be explored to equitably meet the mobility needs of the nation. 

In addition, technological advancements are providing new capabilities, flexibility, and efficiencies for roadway pricing and collection of user fees. These capabilities should be fully explored to support innovative financing methods. Changes in vehicle energy sources and energy cost per mile are making financing programs based on gallons less proportional to system use. Innovative financing metrics such as mileage, time of day, weight, road classification, fuel source and others used separately or in combination will prove to be a more sustainable method of funding infrastructure. 

Rationale

Innovative revenue generation and financing techniques can greatly benefit infrastructure deployment by better leveraging available resources to deliver more capital. Innovative financing has a beneficial effect on delivering projects and public benefits sooner as compared to conventional methods. Financing by any technique does not supplant the need for adequate user fees or other sources of revenue to fund infrastructure projects. 

ASCE Policy Statement 496
First Approved in 2002

The other ASCE policies that relate to innovative financing are:

PS 382 Transportation Funding
PS 526 Public-Private Partnerships
PS 434 Transportation Trust Funds
PS 532 National Infrastructure Bank