As federal infrastructure aid slows and subsidy recessions loom, a new report from the Volcker Alliance warns that many state governments are failing to disclose billions of dollars in deferred maintenance liabilities, an omission that obscures the true extent of infrastructure decay and hinders long-term planning.
The Alliance’s three-part series, “Meeting the Trillion-Dollar Challenge,” published Oct. 16, estimates that the country’s backlog of needed repairs is about $1 trillion, or about 4 percent of U.S. GDP.
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Developed with the Humphrey School of Public Affairs at the University of Minnesota and supported by the Pew Charitable Trusts, the project examines how states identify, assess and report maintenance needs.
“There is no one-size-fits-all approach to assessing or disclosing deferred maintenance across states,” said Camila Fonseca Sarmiento, director of fiscal research at the Humphrey School and lead author of the report. “Without standardized disclosure, policymakers and engineers are flying blind.”
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Only 30 states now reference deferred maintenance liabilities in their capital budgets—compared to 23 in 2019—leaving about 20 without a public accounting of the problem, according to the Alliance.
The ENR’s own review of the State’s budget documents that reflects the Alliance’s conclusions when it comes to locating credible, up-to-date and verifiable figures.
State practices expose deep gaps
The volume of case studies highlights the stark contrasts in asset management and disclosure practices.
In California, the Department of General Services estimates about $8 billion in deferred maintenance at more than 12,000 state-owned facilities and reports those numbers annually to lawmakers. The state also mandates five-year capital outlay plans detailing project status and condition scores.
Oklahoma, by contrast, does not list any statewide totals. Each agency maintains its own asset data and deferred maintenance figures are not consolidated into capital budget documents.
Meanwhile, in Massachusetts, the Division of Capital Asset Management and Maintenance has developed a full inventory but faces a backlog of more than $3.2 billion, mostly in higher education and public safety facilities.
These variations underscore what Noah Winn-Ritzenberg, senior director of public finance at the Volcker Alliance, called “a patchwork of definitions and accounting practices that make it nearly impossible to compare progress across states or allocate resources efficiently.”
Buildings to bridges, data gaps widen
The problem of disclosure goes far beyond public facilities. A July 2025 Pew Charitable Trusts analysis estimated that state and local governments face about $105 billion in deferred maintenance on roads and bridges alone.
Pew found that while nominal spending has increased since 1999, inflation and asset depreciation have eroded real investment. More than 30 states project funding shortfalls totaling $86.3 billion through 2035.
“Even when agencies have maintenance goals, inconsistent data and weak reporting make it difficult to connect funding decisions to outcomes,” the Pew analysts wrote.
At the federal level, the US Government Accountability Office reported that the backlog of deferred maintenance and repair for civilian agencies and the US Department of Defense more than doubled from $171 billion in fiscal year 2017 to $370 billion in 2024, prompting the agency to add “Construction conditions” to its list of risk 2025.
The transparency gap is not the exclusive competence of states.
Accurate data is important
When a bridge fails, quick fixes are rare. Failures that could have been avoided through routine maintenance often turn into more costly crises. The absence of consistent baseline data also hinders agencies’ ability to move from reactive repairs to strategic and proactive asset management.
“When you don’t know the status of your assets, you can’t prioritize investments,” said Natalie Wood, a policy analyst at the National Conference of State Legislatures.
The consequences are tangible: An asset management study found that without regular maintenance, average bridge condition ratings dropped from 4.64 to 2.67 over 30 years, indicating accelerated deterioration and higher replacement costs.
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“As federal dollars dwindle, states that don’t quantify their liabilities run the risk of increased costs later,” said William Glasgall, public finance adviser for the Volcker Alliance. “Deferred maintenance isn’t just a number, it’s a future service failure.”
For infrastructure planners, engineers and contractors, the message is clear: reliable data and disclosure are the foundations of predictable capital planning. Without transparency reforms, the Alliance warns, the $1 trillion backlog will continue to grow, putting essential public assets at risk.
“We strongly encourage states to address this imminent threat before it becomes a crisis,” Winn-Ritzenberg said.
