Application process streamlined for rural infrastructure grants, but soaring materials costs raise project price tags

The Transportation Department is trying to make it easier for states and communities to get federal money for major infrastructure projects, so it's simplifying the application process for three major grant programs that dole out a combined $2.9 billion. But soaring costs could delay projects.

State and local governments will be able to apply for three programs with one application, Daniel Vock reports for Route Fifty. Two are geared more toward larger or urban projects; the other is for rural areas. It is meant to fund projects that "improve and expand the surface transportation infrastructure in rural areas to increase connectivity, improve the safety and reliability of the movement of people and freight, and generate regional economic growth and improve quality of life," the agency says.

"In supporting documents, the department said that it is looking for projects that reduce greenhouse-gas pollution, address environmental injustice, advance equity ('including automobile dependence as a form of barrier') and create 'good-paying' union jobs," Vock reports.

Inflation is driving up the price tag for such projects, "threatening to sap the spending power of money flowing to states and localities from Washington in President Biden’s signature infrastructure law," Vock reports. "The cost of highway and street construction materials has increased by 21% in the last year, according to the American Road & Transportation Builders Association, compared with 7.9% for ordinary consumer goods. The climbing cost of road construction is in line with increases in the broader construction industry, where prices have gone up 20% in the last year." Specifically, costs are up for diesel fuel, lumber, steel, and copper components. There is also a shortage of trucks and truck drivers.

However, putting off long-needed projects for too long could lead to infrastructure deteriorating and needing even more expensive fixes later, Vock notes.