Minnesota Department of Transportation

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Alternative Transportation Finance

Innovative ways to fund and finance transportation projects

What is Alternative Transportation Finance?

MnDOT defines alternative transportation finance as any strategy that uses a new or non-traditional transportation funding source or financing technique, as well as any existing funding source or financing technique in a new way, to deliver projects more expeditiously and cost-effectively. Alternative transportation finance provides opportunities to complement traditional transportation funding sources and financing techniques through:

  • New revenue generating strategies that better align user benefits and costs
  • New financing mechanisms designed to leverage resources
  • New land value capture strategies
  • New funds management techniques
  • New types of financial partnerships between state, local and private entities

Consequently, MnDOT is taking a new look at alternative transportation finance as a key component in achieving the department’s strategic vision.


MnDOT is committed to working with its partners and the public to develop an alternative transportation finance program, explore new funding sources and financing techniques, and use innovative strategies to deliver better transportation products and services to the citizens of Minnesota.

MnDOT will pursue alternative transportation finance in an inclusive, collaborative manner that’s transparent and protects the public interest in the transportation system. The effort will be multi-modal and multi-jurisdictional in focus — not just about highways nor just about MnDOT — where all modes and levels of government can benefit from alternative transportation finance.

Although ATF is not a panacea for all transportation funding challenges, it can be an essential piece of the puzzle. It will supplement existing funding sources and financing techniques so we can get more done and better meet the demands of aging infrastructure and diminishing resources.