WASHINGTON — At a time when the federal government is putting a tourniquet on one of the hottest transportation financing instruments available to municipal issuers and private investors in the current market, the Department of Transportation’s chief may decide to release $200 million of additional funding to help meet the program’s demands.

The American Recovery and Reinvestment Act, otherwise known as the stimulus package, allows the transportation secretary to use as much as $200 million of funding to subsidize and pay administrative costs of credit assistance provided under the Transportation Infrastructure Finance and Innovation Act program. That funding would come out of the $1.5 billion of supplemental discretionary grants made available in the stimulus package for surface transportation infrastructure capital investments.

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