GARVEE

Grant Anticipation Revenue Vehicle, or GARVEE, is a type of bond or similar financing method issued by a state or state infrastructure bank under the guidelines of the National Highway System Designation Act of 1995, eventually made permanent in section 122 of Title 23 of the United States Code. States must repay the bonds using federal funds expected to be received in the future. Some financing under this plan is referred to using the term Grant Anticipation Note (GAN).
Section 122 states "an eligible debt financing instrument is a bond, note, certificate, mortgage, lease, or other debt financing instrument issued by a State or political subdivision of a State or a public authority, the proceeds of which are used to fund a project eligible for assistance under Title 23."
GARVEE bonds may be used for major projects receiving federal funding. They do not guarantee that the federal government will provide the expected financing, and they are not guaranteed by the federal...