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Dive brief:
- Almost three years after the five-year law, 40% of the funds of the Law of Employment and Investment in Infrastructures have been announced, indicating progress is still lagging, according to a fact sheet the DOT released Wednesday. It shows that more than 60,000 construction projects are moving forward 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. The announced funding, captured from the agency’s press releases, is preliminary and non-binding, while the awarded funding represents actual obligations, according to the White House.
- More than $480 billion of the IIJA has been announced, an increase of 20%. $400 billion for over 40,000 projects in November 2023, according to the DOT. This is 6% more than $454 billion for 56,000 projects disbursed in Mayhalf of the law.
Diving knowledge:
Much of the law’s funding is available until it runs out, so it is expected to push construction projects beyond the five-year period. However, other funds are appropriated in specific amounts for specific fiscal years from 2022 to 2026. Former President Donald Trump has indicated that it would defund some initiatives, such as clean energy programs, if elected.
Getting IIJA dollars where they need to go is no simple task. Money from the expanding law flows through more than 400 programs, channeled by various federal, state and local entities.
The biggest part of IIJA money is earmarked for roads and bridges construction, according to White House data analyzed by CNBC, followed by rail, broadband, energy and water projects.
According to the new DOT sheet, IIJA funding has been announced for:
- 10,200 bridge projects.
- 1,100 airport projects.
- 500 port and river projects.
- 170 railway projects.
- 11,200 additional public transport projects.
In addition, more than 175,000 miles of roadways are being upgraded thanks to the law, and 1,400 communities are improving road safety for people who walk, bike and drive, according to the DOT fact sheet.
In recent earnings calls, heads of AECOM, WSP, Jacobs, Balfour Beatty i Granite construction he said the infrastructure law is giving his businesses a boost.
“Ours [backlog] of $5.6 billion is a testament to the strong public and private market environment supported by the IIJA,” said Kyle Larkin, CEO of Granite Construction, on the company’s second quarter earnings call in August .
