The problem with the WIFIA ‘criteria’ published in June 2020 is that they are not criteria, they’re questions that imply criteria being used by OMB off stage. Not a very transparent approach. This is discussed in detail in a prior post.

Well, why not fill in the blanks with explicit criteria developed from the sources specified by the Congressional directive — FCRA law and the 1967 Report? I came up with six based on the language & principles stated in those sources, and consistent with the CBO Report as well.

Using these six criteria as a guide, answers to WIFIA’s questions about federally involved projects can be much more straightforward — and informative. Which is the point, right?

• (A) There must be a substantive obligation to repay the program loan.

• (B) The substantive obligation to repay the loan must be from a non-federal entity using non-federal resources.

• (C) The substantive obligation to repay the loan must be the result of an independent decision by a non-federal entity and not directly or indirectly compelled by the federal government.

• (D) The non-federal entity obligated to repay the loan should also be the primary beneficiary of the capital improvements financed by the loan’s proceeds.  

• (E) FCRA treatment should be evaluated independently of the loan program’s other federal policy objectives, eligibility requirements or selection criteria. 

• (F) FCRA treatment for a specific loan should be consistent with the federal participant’s budgeting and tax treatment for the program loan and all equivalent non-federal debt of the project.