The passage of the
Federal lawmakers approved the 27-month bill on Friday, maintaining revenue streams crucial for state and local infrastructure financing.
The bill also increases funding for the Transportation Infrastructure Finance and Innovation Act program, which provides credit assistance for qualified transportation projects of regional and national significance.
Cuomo said the bill will keep tens of thousands of construction workers employed and support over 19 million New Yorkers who rely on the state's roads, bridges and trains every day.
"Passage of the bill also means a huge boost for the Tappan Zee Bridge replacement project," Cuomo said. "New York is in a group of projects that received strong ratings on their applications for TIFIA funding, which was dramatically increased in this legislation."
The New York State Thruway Authority had previously requested a $2 billion loan to help pay for the estimated $5.4 billion Tappan Zee project. Under the new bill, the authority could request almost half the cost of the project.
"The TIFIA authority funds will increase tenfold to $1 billion for FY2014, and the federal share of project costs will be raised from 33% to 49%," said Congresswoman Nita Lowey, D-N.Y. "Together, these provisions will increase the likelihood that projects like the Tappan Zee Bridge will receive critical funding and provide a boost for our local economy."
The Tappan Zee Bridge was among 26 projects that applied for a TIFIA loan, for which $127 million of funding was available. In May, only five smaller projects were selected, not including the Tappan Zee.
The authority was told it would be strongly considered and put through an accelerated review process after reauthorization of the highway bill. Now that the bill has been reauthorized with increased funding, the Thruway Authority is in conversations to determine the next step in the process.
In addition to a loan,
A plan of financing is still unclear, but earlier this month chairman Howard Milstein said the Thruway's financial advisor is working to develop a plan. According to bond documents, the authority expects to have a final design and cost for the project by the end of 2012.
Moody's Investors Service analyst Maria Matesanz said an increase in TIFIA funding could be a positive for new projects, but it's too soon to tell whether it would have any effect on the Thruway Authority's rating.
Standard & Poor's analyst Joseph Pezzimenti also said it's hard to say how the authority's rating or outlook might be affected until they see a detailed plan for financing the Tappan Zee.
Moody's rates the Thruway's revenue bonds at A1 and Standard & Poor's at an equivalent A-plus.
The current Tappan Zee Bridge, which was opened to traffic in 1955, spans the Hudson River 10 miles north of New York City and carries 50 million vehicles annually. The bridge needs replacing because it is prone to severe congestion and does not meet bridge and highway standards.
