The New Jersey Transportation Infrastructure Bank has recently been established by the NJ Department of Transportation (NJDOT). The Bank provides low-interest loans for county and municipal transportation projects with a mission of reducing the cost of financing for critical transportation projects.
The Bank was initially funded by the gas tax increase which occurred in 2016, generating $22.6 million. With these funds the bank is able to offer loans with interest rates between 1.5% to 1.75% for terms up to 31 years.
Funding prioritization will be given to projects that address structurally deficient bridges, followed by projects that improve pedestrian safety. Read more about how NJTIB projects are prioritized here.
NJDOT Commissioner Diane Guitierrez-Scaccetti is hopeful that the NJTIB will reduce cost for local transportation infrastructure and increase the number of projects that can receive funding across the state. Additionally, Peter Kasabach, with NJ Future, hopes that localities will use this additional funding source to incorporate green infrastructure into their projects “as a proven way to reduce roadway flooding, calm traffic, beautify neighborhoods, create local jobs, and foster healthier, more resilient communities.”