Like a kid on their way to see to Santa, government officials are prepping their wish lists for the new infrastructure bill.
On Monday, November 15, 2021, President Biden signed the largest infrastructure package in U.S. history. The Infrastructure Investment and Jobs Act (IIJA) will fund projects for many years to come, like a gift that keeps on giving.
Here’s the breakdown of the infrastructure package spending:
- $550 billion of the package will go toward new spending.
- Roads and pipes and bridges, oh my! $283.8 billion is for transportation with about 80% of the funding going to highways, roads, and railways. $15 billion will go to electric vehicle charging and the rest will go toward public transit, with the expectation it will fund big-ticket items.
- Get the lead out! $55 billion will go toward lead service replacement along with sewer improvement projects and new pumping stations.
- $65 billion will go toward broadband deployment, equity, and affordability to improve internet access in rural areas.
- Power to the people! $65 billion will go toward strengthening the electrical grid.
- $47.2 billion is allocated for climate resiliency programs.
- Additionally, the package supports environmental programs, including $21 billion going toward legacy pollution and $8.3 billion for western water projects.
Here is the funding breakdown for the top 10 states that will receive funding:
Does your business support any of the areas above?
If you answered yes to the question above, you may see an increase in solicitations. However, there will be other impacts from this new infrastructure package, including a greater aggregate demand for materials such as steel products, cement, lumber, labor, and related supply chains.
Don’t be tempted to focus your research on federal agencies such as the Department of Transportation, Department of Energy, and Environmental Protection Agency. They are expected to oversee funding administration, new grants, and the design of new programs to flow down funds to state agencies and localities.
Be more patient than that kid waiting for Santa. Look to forecasts and capital plans at the state and local level to position yourself to support these programs.
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