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Transportation Funding & Financing

Bonding and Debt Instruments

One way to raise equity for a transportation project is to issue bonds. A bond is a written promise to repay borrowed money on a definite schedule, usually at a fixed rate over the life of the bond. Transportation bonds are traditionally municipal bonds, which are issued by state and local government entities to finance their various projects and expenses.

Recent years have spurred some noteworthy bonding innovations. State and local governments as well as transportation agencies and authorities have begun to issue bonds backed by money sources not previously used to secure debt. Particularly noteworthy in this regard are Grant Anticipation Revenue Vehicles and Grant Anticipation Notes, known respectively as GARVEEs and GANs.

The Project Finance State by State Interactive Map illustrates those states that have issued GARVEEs. It also shows which states have other debt authority.


Municipal/Public Bond Issues
Nonprofit 63-20 Financing
Private Bond Issues
Certificates of Participation