Refinancing Federal Loans to Support Transportation Infrastructure: Lessons From the COVID‐19 Pandemic

The COVID‐19 pandemic exposed critical vulnerabilities in U.S. transportation infrastructure, resulting in widespread project delays, suspensions, and cancellations. In response, borrowers turned to refinancing to mitigate revenue shortfalls and benefit from historically low interest rates. This paper analyzes the surge in refinancing activity between 2020 and 2022, focusing on transportation infrastructure projects that secured more favorable loan terms during this period of disruption. It evaluates refinancing decisions using established public finance criteria to assess fiscal and policy implications. The findings illuminate the incentives shaping borrower and lender behavior and consider refinancing as a strategic fiscal instrument under economic stress.