TRIP noted that the analysis by the U.S. Department of Transportation submitted in July to Congress shows that the U.S. faces a $198 billion backlog in needed repairs and improvements in rural roadways and bridges. However, The Infrastructure Investment and Jobs Act (IIJA), signed into law in November 2021, provides $379.3 billion in funds for highway and bridge investments over five years, including a 40% funding increase over the first three years of the program from 2022 to 2024.

Recently, the American Association of State Highway and Transportation Officials (AASHTO) shared that according to "Rural Connections: Examining the Safety, Connectivity, Condition, and Funding Needs of America's Rural Roads & Bridges" a report compiled by TRIP - a transportation research nonprofit - roadways in the nation's rural areas face "significant challenges" such as a lack of capacity, high crash rates, and support for rising freight traffic.

 

With that, the infrastructure deal was already developed to rebuild the country's roads, bridges, and rails, so why is $198 billion needed?

According to the Bureau of Transportation Statistics, higher construction costs reduce the worth of the transportation spending bills in place. The Bipartisan Infrastructure Law however will disperse 20% of the total $379.3 billion in each fiscal year from 2022 to 2026, The Bureau looked at two scenarios that discuss the inflation effect on the funding. In the first scenario, it is assumed that construction costs continue to rise at their current rate. With that, only $224.2 billion can be bought with the $379.3 billion allotted for highways meaning that only 60% of what could have been bought in 2021 can be bought over the next five years, marking a 40% reduction.

The second scenario assumes a modest inflation rate using the average growth in 2019 and 2021. The $260.5 billion can be bought with the $379.3 billion allocated for highways due to increased costs, marking a 16% increase in what could be bought but still only 69% of what could have been bought at the time of signing.

In conclusion, according to the U.S. DOT the 2024 Notice of Funding Opportunity for the Safe Streets and Roads for All program ended on August 24, 2024, and is expected to be released in early 2025 for that fiscal year. In 2024, 453 awards totaling $1,072,568,832 were given. The Federal Highway Administration meanwhile requested an additional $60.8 billion for the 2024 fiscal year resulting in a $70.3 billion budget. Lastly, they were awarded $145.3 billion.

Be sure to check the DOT Navigator resource to help you and your firm apply for grants for infrastructure projects.