Sound Transit urges 75‑year bond authority to accelerate projects; opponents warn of long‑term costs

The Senate Transportation Committee heard competing testimony on Senate Bill 6,148, which would raise the maximum term for regional transit authority bond issues from 40 years to 75 years, aligning state law with federal authority created in the 2021 Infrastructure Investment and Jobs Act.

Kelly Simpson, committee staff, told the committee the bill would allow Sound Transit and other regional transit authorities to issue debt for longer maturities; she noted that bonds issued with terms exceeding 40 years would make an RTA ineligible for regional mobility grants under current provisions.

Dow Constantine, CEO of Sound Transit, said extended maturities would allow the agency to match debt to very long‑lived assets—tunnels, bridges and major systems—and to accelerate delivery of voter‑approved projects by smoothing cash flow during peak construction. "Senate Bill 6,148 simply aligns Washington law with federal law, allowing us to take advantage of authority established by the federal government in the 2021 Infrastructure Investment and Jobs Act," Constantine told the committee.

Victoria Wassmer, Sound Transit’s chief finance and business officer, said Sound Transit and its advisers have modeled interest‑rate and amortization scenarios and that extended terms would be applied only to assets whose useful life matches the financing; she said federal rules limit the percentage of an asset that may be financed with extended‑term debt and require investment‑grade ratings.

Opponents said longer maturities increase the cost of servicing debt and shift repayment burdens to future residents. Charles Prestrud (Washington Policy Center) noted Sound Transit finished 2024 with more than $5 billion in cash and expressed concern about adding long‑term obligations before a revised enterprise plan is complete. Public commenter Jeff Pack questioned board appointment claims and asked who determines long‑term asset values given historic cost overruns on projects such as the Seattle tunnel.

Supporters including Transportation Choices Coalition argued 75‑year bonding authority is a common financing approach for large infrastructure and can protect taxpayers by allowing delivery now at lower construction costs versus delaying projects. The committee closed the public hearing and adjourned; no formal committee vote was taken.