Dive Brief:
- Nearly three years into the five-year law, 40% of Infrastructure Investment and Jobs Act funds have been announced, indicating progress is still lagging, according to a fact sheet the DOT released Wednesday. It shows more than 60,000 construction projects are advancing with IIJA money.
- The $1.2 trillion federal IIJA, which President Joe Biden signed into law in November 2021, includes $550 billion in new money. Announced funding, captured from agency press releases, is preliminary and non-binding, whereas awarded funding represents actual obligations, per the White House.
- More than $480 billion from the IIJA has been announced, a 20% increase from $400 billion for over 40,000 projects in November 2023, according to the DOT. That’s up about 6% from $454 billion for 56,000 projects disbursed as of May, the law’s halfway mark.
Dive Insight:
Much of the law’s funding is available until expended, so it is expected to fuel construction projects past the five-year period. However, other funds are appropriated in specified amounts for specified fiscal years from 2022 to 2026. Former President Donald Trump has indicated he would defund some initiatives, such as clean energy programs, if he’s elected.
Getting IIJA dollars where they need to go is not a simple task. Money from the sprawling law flows through more than 400 programs, channeled by a variety of federal, state and local entities.
The largest portion of IIJA money is designated for road and bridge construction, according to White House data analyzed by CNBC, followed by rail, broadband, power and water projects.
Per the new DOT sheet, IIJA funding has been announced for:
- 10,200 bridge projects.
- 1,100 airport projects.
- 500 port and waterway projects.
- 170 rail projects.
- 11,200 additional public transit projects.
In addition, more than 175,000 miles of roadway are being updated thanks to the law, and 1,400 communities are improving road safety for people walking, biking and driving, according to the DOT sheet.
In recent earnings calls, heads of AECOM, WSP, Jacobs, Balfour Beatty and Granite Construction said the infrastructure act is giving their businesses a boost.
“Our [backlog] of $5.6 billion is a testament to the continued strong public and private market environment supported by the IIJA,” said Granite Construction CEO Kyle Larkin in the firm’s second-quarter earnings call in August.
