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State treasuries outline bond and TIFIA pathways to fund $1.5 billion for the IBR first phase
Summary
Washington and Oregon financial teams said the project could reach a $1.5 billion toll funding target via a mix of PAYGO and state-backed bonds or via a TIFIA loan; TIFIA offers drawdown flexibility and avoids state debt-capacity impacts if structured as standalone toll revenue financing.
Washington’s deputy state treasurer and Oregon’s debt managers presented options to transform toll revenues into upfront capital for the Interstate Bridge replacement.
Jason Richter (Washington Deputy State Treasurer) said the analysis tested a conservative financing case based on scenario 2 and assumed a 50/50 split of debt issuance between Washington (triple-pledge) and Oregon (toll revenue bonds backed by the State Highway Fund) for state-backed bond structures. He also highlighted pursuing a TIFIA loan as an alternative: "If we're successful with TIFIA... the 1st TIFIA draw is anticipated in 2031," Richter said, adding that a TIFIA loan as a standalone revenue loan would not affect either state's debt capacity.
Oregon’s analysis (PRAG-contracted) modeled a 5.5% interest assumption, 1.3x minimum coverage, 30-year terms and an emphasis on PAYGO in early years. Ethan Pendleberry (ODOT) described an approach with roughly $488 million in PAYGO and just over $1 billion in bonding to reach $1.5 billion of program funding, and noted flexibility in how Oregon structures bond sales across biennia. Staff said bonds are projected to be issued in tranches between 2030 and 2035 under the model.
