Uncertainty about federal highway funding is causing some states to turn from Garvee bonds to alternative financings, such as toll-backed debt and public-private partnerships, but issuers should be aware of the risks involved, Fitch Ratings warned Wednesday.

Grant anticipation revenue vehicle bonds are backed with federal funds and states are “looking inward” rather than to the federal government for funds, Fitch said in its report, “U.S. Surface Transportation Funding: Pitted with Potholes?”

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