US Infrastructure Investment and Jobs Act Enters Second Half with Funds Available for More Work

This May marks the midpoint of the Infrastructure Investment and Jobs Act (IIJA), a $1.2 trillion law that provides new funding for improvements to various infrastructure projects, including roads, bridges and rail, as well as strengthening of the US infrastructure's resilience against the impacts of climate change, extreme weather and cyber-attacks.

Notably, as of November 2023, nearly $500 billion of the IIJA funds remain to be allocated before the law’s authorization period ends in September 2026. 

The White House has made transparency a key component of the new law, and an interactive map allows anyone to see where nearly $700 billion of funding has already been applied to tens of thousands of projects across the country.

One construction sectors that will likely continue to benefit from the IIJA bill is underground infrastructure, and the installation, repair, and/or replacement of pipes, cables, tunnels, and other facilities that are buried beneath the surface. 

According to the Brookings Institution, broadband internet expansion has been the most successful IIJA endeavor so far, with nearly $47 billion spent of the original $51 billion estimate. Other infrastructure sectors have significant funds left to spend, however: 

• over half of the $600 billion for transportation, road, and bridge projects have been spent as of this past November
• only about 20% of the $100 billion for energy projects has been allocated
• nearly $35 billion remains in the funds for water projects

Pairing that information with recent demographic surveys reveal several areas that may experience increased infrastructure construction over the next two or three years:

• According to a 2021 report card by the American Society of Civil Engineers (ASCE), the states that have the lowest grades for their overall infrastructure quality are West Virginia, Mississippi, New Mexico, Pennsylvania, and Louisiana. These states may have more urgent needs and opportunities to improve their underground infrastructure, such as water, broadband, and power systems.
• A 2022 utility and communications construction outlook by Underground Infrastructure magazine indicated that the South and West regions of the United States are anticipating significant population growth while also planning for increasing challenges from climate change, such as droughts, floods, and heat waves, which could affect their underground infrastructure.
• Finally, several states have shown particular appetite for commanding IIJA dollars for projects. Based on the White House data, as of February 2023, the states that have received the most funding awards from the IIJA bill are California, Texas, New York, Florida, and Illinois, though this does not necessarily reflect the actual spending or progress of the projects, as some awards may be pending, delayed, or canceled.

With this analysis in hand, Leviat is actively looking for ways to help our clients and industry partners across the United States, and especially in these areas, execute on rebuilding critical infrastructure.

For more information on Leviat’s portfolio of products and solutions for infrastructure construction, please visit https://www.leviat.com/en-us/utility-precast-sector.