Two years after passage of Infrastructure Investment and Jobs Act, billions of dollars remain available for projects

Brookings Institution graph

Roughly two years ago, the $1.2 trillion infrastructure bill was signed into law. The bill included $550 billion in new spending through the Infrastructure Investment and Jobs Act. This month, the IIJA is about 40% complete, and the time is ripe to take "stock" of what the bill has achieved so far, reports Adie Tomer for the Brookings Institution. "Based on our analysis of published White House data, IIJA implementation is now hitting its stride. Formula and direct federal spending continue to move at a steady pace, already pumping $306 billion into state coffers and direct investment projects."

Grantmaking is a large chunk of the act, which is "steadily increasing, with 80% of all competitive funding still left to be awarded," Tomer explains. "Overall, state and local stakeholders should feel motivated to keep pursuing federally funded projects. . . . Eligible entities of all sizes can find programs that fit their needs and capacities. Yet, with high inflation and interest rates, infrastructure builders must be careful to prioritize projects that can deliver the most value in the long run. There's more money than usual, but it's far from infinite."

The need for construction and skilled labor is expected to increase as grant money materializes into projects. "Construction of IIJA-funded projects will last well beyond 2026, when the legislation expires, and Inflation Reduction Act tax credits will support energy-related projects for another nine years. America needs to get serious about growing and diversifying the infrastructure talent pipeline because time is running out," Tomer reports.

Over the next two years, federal awards will continue, and "federal agency staff will continue to accelerate their administration of competitively awarded programs," Tomer adds. "And there will be plenty of more awards to build passenger rail corridors, make streets safer, address sewer overflow, manage orphaned oil wells, and grow digital equity. The sheer volume of opportunities will test applicants' capacities to win federal awards."