Major Highway Projects: DOT Issues New P3 Rules

DOT Releases New Guidance on Public-Private Partnerships for Highway Projects

The U.S. Department of Transportation (DOT) has issued new guidance on how large highway projects must be reviewed when a public-private partnership, or P3, is being considered.

The guidance was released by the Build America Bureau and the Federal Highway Administration (FHWA). It explains when public agencies must complete a “value for money” (VfM) analysis. This analysis compares a traditional public model with a P3 model for delivering highway projects.

The document does not create new laws. It does not add new legal requirements. DOT states that the guidance has no legal effect. Instead, it explains how existing federal laws apply to major projects and other large transportation investments.

For commercial truck drivers and carriers, this matters because many large highway projects affect freight routes, toll corridors, and long-haul traffic patterns.

What Are Public-Private Partnerships?

A public-private partnership is a long-term contract between a public agency and a private company. In highway projects, the private partner may design, build, finance, operate, or maintain the facility.

These partnerships are often used for:

• Major interstate widening projects
• Bridge replacements
• Toll highway projects
• Managed lane projects
• Freight corridor projects

Many of these projects rely on tolls or other user fees to help pay for construction and long-term operations.

When Value for Money Reviews Apply to Highway Projects

The guidance outlines when a value for money review is required.

A VfM analysis compares a traditional public approach with a P3 delivery model. The goal is to determine which option provides better value to the public.

Under the Infrastructure Investment and Jobs Act (IIJA), a VfM or similar review is required in several cases involving highway projects:

• Transportation projects costing more than $750 million, if they are carried out by certain public agencies in states with P3 laws, are seeking TIFIA or RRIF credit assistance, and are expected to generate user fees or other revenue.
• Title 23 highway projects costing $500 million or more that are planned as a P3.
• Any project seeking TIFIA or RRIF federal credit assistance that will use a P3 model.

TIFIA stands for the Transportation Infrastructure Finance and Innovation Act. RRIF stands for the Railroad Rehabilitation and Improvement Financing program. Both programs provide federal loans or credit support for large infrastructure, including highway projects.

Two Required Review Stages for Highway Projects

The guidance states that projects using a P3 model must be reviewed at two key stages.

Stage 1: Early Review of Highway Projects

The first review takes place during project planning.

At this stage, the public agency evaluates delivery options for highway projects. If the project may seek TIFIA or RRIF financing, a VfM review must be completed before deciding to move forward with a P3 structure.

Information at this stage may be limited. The review may rely on early cost estimates and risk assessments.

Stage 2: Detailed Review Before Signing Agreements

If the agency chooses a P3 model after Stage 1, a detailed VfM analysis must be completed before signing a concession agreement for the highway project.

This detailed review must include:

• Total life-cycle costs of the highway project
• The expected delivery schedule
• A comparison of public funding versus private financing
• Any public funding needed to close financial gaps
• Key financial and revenue assumptions
• Risk allocation and risk premiums
• Forecasts of tolls or other revenue
• Any public benefits created by the project

The guidance stresses that these assumptions should be based on real data whenever possible. If data is not available, that should be clearly stated.

Toll Revenue

Many large highway projects rely on toll revenue. Because of this, the guidance requires careful revenue forecasting as part of the detailed review.

Projects that generate more than a minimal amount of user fee revenue fall under these review requirements.

For commercial truck drivers, this is important. Heavy trucks often account for a large share of toll revenue on major projects and freight corridors.

Toll forecasts and pricing assumptions are key parts of the financial review. These projections can influence how highway projects are structured and how costs are recovered over time.

Transparency Requirements for Highway Projects

The guidance places strong emphasis on transparency in highway projects delivered through P3 agreements.

Public agencies must make the VfM analysis and key agreement terms publicly available at the appropriate time. In many cases, this must happen before the concession agreement is signed.

The guidance also recommends independent audits before contracts are finalized. The audit should confirm that risks are identified and that all required steps have been followed.

Post-Implementation Reviews

The guidance also includes post-implementation requirements for certain highway projects that receive federal financial assistance.

Within three years after the project opens to traffic, the public sponsor must:

• Review the private partner’s compliance with the concession agreement
• Certify whether contract terms are being met
• Notify the Secretary of Transportation of any violations
• Make that certification publicly available

For highway projects that use TIFIA or RRIF assistance, a public summary of total federal financial support must also be provided.

How This May Affect Commercial Truck Drivers

The guidance does not change CDL rules. It does not change hours-of-service limits. It does not affect inspection standards or enforcement.

However, it may affect commercial truck drivers in other ways.

Many major highway projects that serve freight routes use P3 models. These projects often involve toll roads, express lanes, or large bridge rebuilds.

Because toll revenue is often central to financing, commercial trucks may face long-term toll structures set under private concession agreements.

The guidance requires agencies to study toll revenue forecasts, financing costs, and risk allocation before signing long-term agreements.

For carriers and owner-operators, this means that some key freight highway projects may be shaped by long-term public-private contracts. These agreements can influence pricing, funding models, and operating costs over time.

No New Legal Requirements for Highway Projects

DOT makes clear that the guidance does not create new laws. It does not change existing statutes. It explains how current federal laws apply when public agencies consider using P3 delivery for major highway projects.

For the trucking industry, this guidance shows how billion-dollar projects must be reviewed before they move forward under private financing models.

As more states invest in large freight corridors and interstate improvements, this framework will shape how those projects are analyzed before agreements are signed.