$720B in IIJA Money Still to be Allocated
Nearly three years into the five-year Infrastructure Investment and Jobs Act (IIJA), only 40% of its funds have been announced, signaling that progress is still falling behind, according to a fact sheet released by the Department of Transportation (DOT) on Wednesday. The fact sheet notes that over 60,000 construction projects are moving forward with IIJA funding.
The $1.2 trillion IIJA, signed into law by President Joe Biden in November 2021, includes $550 billion in new spending. While announced funding is preliminary and non-binding, awarded funding represents actual obligations, as outlined by the White House. More than $480 billion of the IIJA's funds have been announced, marking a 20% increase from the $400 billion allocated to over 40,000 projects by November 2023, according to the DOT. This is a 6% jump from the $454 billion allocated to 56,000 projects as of May, which marked the halfway point of the law.
Much of the IIJA funding will remain available until it is fully expended, meaning it is expected to continue driving construction projects beyond the five-year timeframe. However, certain funds are allocated for specific fiscal years, from 2022 to 2026. Former President Donald Trump has suggested he would cut back on some initiatives, such as clean energy programs, if re-elected.
Distributing IIJA funds effectively is a complex challenge. The funds flow through more than 400 programs, managed by a mix of federal, state, and local agencies.
The largest share of IIJA money is allocated to road and bridge construction, according to White House data reviewed by CNBC. Other significant allocations include rail, broadband, power, and water infrastructure projects.
According to the new DOT fact sheet, IIJA funding has been announced for:
10,200 bridge projects
1,100 airport projects
500 port and waterway projects
170 rail projects
11,200 public transit projects
Additionally, over 175,000 miles of roadway are being updated due to the law, and 1,400 communities are enhancing road safety for pedestrians, cyclists, and drivers, the DOT reports.
Executives from major construction firms such as AECOM, WSP, Jacobs, Balfour Beatty, and Granite Construction have reported that the IIJA is positively impacting their businesses.
“Our [backlog] of $5.6 billion is a testament to the continued strong public and private market environment supported by the IIJA,” said Granite Construction CEO Kyle Larkin during the company’s second-quarter earnings call in August.
Read full story on Construction Dive
Comentarios