90 INDUSTRY INSIDER May | June 2026 AirportImprovement.com In the world of airport infrastructure, innovation isn’t always about futuristic architecture or cutting edge technology. Sometimes, it’s about finding smarter ways to finance projects that make travel safer, smoother and more reliable. That was exactly the case when Sacramento County’s airport team embarked on an ambitious effort to secure Transportation Infrastructure Finance and Innovation Act (TIFIA) funding to pay for a portion of a new pedestrian walkway—an endeavor that ultimately reshaped not only the facility’s connectivity, but also the team’s understanding of federal financing. The airport’s challenge was clear: construct an elevated pedestrian walkway connecting the landside terminal to Concourse B. The project promised to create a more dependable passenger experience while reducing congestion and operational strain. But like many major capital improvements in the aviation sector, its price tag posed a significant hurdle. The team needed a solution that would secure funding without disproportionately increasing costs to the airlines that partner with—and rely on— the airport every day. Enter TIFIA, a federal loan program designed to help public agencies finance large infrastructure projects at favorable terms. While widely used in the ground transportation sector, the program was still relatively new territory for airports, making the Sacramento team’s endeavor both bold and precedent setting. What made TIFIA especially appealing was our ability to qualify for the program’s rural interest rate designation that slashes borrowing costs to half of the standard federal rate. But this benefit came with strict criteria, including a requirement that eligible projects remain under the $100 million threshold. This meant that defining the project scope with precision wasn’t just important, it was essential. From the outset, the process demanded coordination among a diverse cast of contributors. Representatives from several airport divisions worked alongside the county debt officer and county counsel, as well as external financial advisors who supported financial modeling and guided the team through the program’s nuances. Despite their expertise, the path forward wasn’t always clear. As one of the first airports to pursue TIFIA funding under the rural rate, the team lacked a roadmap. Each step presented new questions—and a few surprises. The approval process ultimately took just over one year, doubling the timeline of a typical issuance of General Airport Revenue Bonds. Delays surfaced in unexpected places: navigating contract language that had never been applied in an airport setting, coordinating multiple agencies’ timelines, and meeting evolving program deadlines. Without prior examples to lean on, the team had to adapt quickly and problem solve creatively. The work was detailed, demanding and, at times, exhausting. Securing the rural rate TIFIA loan delivered meaningful long-term savings and allowed the airport to move forward with confidence. It also established an invaluable foundation for other airports seeking innovative financing solutions. For the Sacramento team, the experience reshaped internal processes and forged strong interdepartmental relationships. Just as importantly, it provided a blueprint for peers across the industry. Looking back, the team points to the Build America Bureau—the federal office that administers TIFIA—as an essential partner throughout the journey. Its readiness to jump on calls, offer clarifications and collaborate in real time became a lifeline when deadlines loomed or uncertainties emerged. For airports considering similar funding opportunities, the advice is straightforward: reach out early, ask questions often and view the Bureau as a true partner rather than a distant oversight entity. Equally critical is assembling a project team that reflects the full scope of the effort. An infrastructure initiative funded with a TIFIA loan is as much a legal and financial undertaking as it is a construction project. Success requires a coalition of experts—finance professionals, legal counsel, planners and engineers working in lockstep from day one. Doug McDonald is the deputy director of Finance and Administration for Sacramento International Airport. He has been with the airport since 2007 and has held many different finance positions in that time, including budget officer and officer of rates and charges. The Ins and Outs of Low-Interest TIFIA Loans
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