This report summarizes the efforts and progress made to date by the Department of Transportation (DOT) and focuses specifically on the Federal Highway Administration's (FHWA's) implementation of important financing initiatives in President Clinton's Executive Order 12893 of January 26, 1994. The purpose of the Executive Order is to enhance existing programs and to develop more effective investment in infrastructure. FHWA established the "Innovative Financing--Test and Evaluation Project (TE-045)" in order to identify existing transportation financing barriers and to advance innovative financing mechanisms that would increase highway investment. The initiative asks State and local governments to identify specific projects which could be advanced through new ways of financing.