Infrastructure Spending
The Infrastructure Investment and Jobs Act (IIJA, also called the Bipartisan Infrastructure Law) was signed in November 2021, providing $550 billion in new federal investment over five years in transportation, broadband, water, energy, and related infrastructure — the largest federal infrastructure investment since the Interstate Highway System. The funding broke into major categories: $110 billion for roads and bridges, $66 billion for passenger rail (the largest Amtrak investment in history), $65 billion for broadband expansion (targeting unserved and underserved areas), $65 billion for electric grid modernization, $55 billion for clean water infrastructure, $39 billion for public transit, and $7.5 billion for EV charging networks. As of 2026, the IIJA's funds are still being deployed — much of the money flows through formula grants to states and local governments or competitive grant programs with multi-year project timelines. The Trump administration has paused some grant disbursements and announced plans to claw back certain unspent funds, creating uncertainty for state and local governments with projects in the pipeline. The infrastructure law represents the dominant federal role in physical infrastructure investment for the current decade; its implementation is a significant determinant of which communities see project benefits.
Current Law (2026)
The Infrastructure Investment and Jobs Act (IIJA, 2021) provided $550 billion in new federal investment in transportation, broadband, water, and energy infrastructure over 5 years.
| Category | IIJA Funding |
|---|---|
| Roads and bridges | $110B |
| Public transit | $39B |
| Passenger rail (Amtrak) | $66B |
| Broadband | $65B |
| Water infrastructure | $55B |
| Electric grid | $65B |
| EV charging | $7.5B |
| Airports | $25B | | Ports/waterways | $17B |
Legal Authority
- 23 U.S.C. § 101 et seq. — Federal-aid highways (authorization, apportionment, and eligible uses of federal highway funds)
- 49 U.S.C. § 5301 et seq. — Federal transit programs (public transportation grants and formula funding)
- 47 U.S.C. § 1702 — Broadband Equity, Access, and Deployment Program (BEAD — $42.45B for broadband infrastructure under IIJA)
How It Works
Federal infrastructure dollars don't flow automatically from Congress to construction sites. The IIJA created two types of funding: formula grants and competitive (discretionary) grants — and they move very differently.
Formula grants are the backbone of federal infrastructure spending. Under 23 U.S.C. § 104, FHWA apportions highway funds to states each year based on factors like lane-miles, vehicle miles traveled, and diesel fuel taxes paid — no application required. States receive their allocation and draw down funds as projects are obligated. The federal share is typically 80% of eligible project costs; states supply the remaining 20% (matching requirement). Formula funds have historically had high obligation rates because states have existing programs and pipelines to absorb them quickly. The $110 billion in road and bridge funding under IIJA flows largely through this formula mechanism, supplemented by the new Bridge Replacement and Rehabilitation program and PROTECT program for climate-resilient roads.
Competitive grants require applications and multi-year timelines. The RAISE (formerly BUILD) program, the Mega program, the Bridge Replacement program's discretionary component, and BEAD broadband grants all require local governments, transit agencies, or states to submit proposals, demonstrate project readiness, and compete. A RAISE grant application submitted in 2022 might receive an award in 2023, complete environmental review and design in 2024–2025, and break ground in 2026. The announcement of a grant award is not the same as money spent — there are typically 3–5 years between competitive grant announcement and actual construction completion on major projects.
Broadband (BEAD) mechanics work differently than transportation. The $42.45 billion BEAD program under 47 U.S.C. § 1702 flows through NTIA to states, which run their own grant processes to award contracts to internet service providers. States were required to complete challenge processes (verifying which locations lack adequate broadband), draft initial proposals, and receive NTIA approval before issuing subgrants. Most states began their BEAD subgrant processes in 2025–2026, with actual fiber deployment expected 2026–2029.
For most programs, money flows through a federal-state-local chain: Congress → federal agency (FHWA, FTA, EPA, NTIA) → state agency (state DOT, broadband office, water authority) → local project owner → contractor. Each handoff involves environmental review under NEPA, competitive procurement, Buy America domestic content requirements, and Davis-Bacon prevailing wage compliance. These requirements add time and cost but also ensure quality standards and worker protections.
How It Affects You
If you're a homeowner near a planned project: Infrastructure investments directly affect property values. A new transit station, highway interchange, or broadband expansion can increase home values 5-15% in surrounding areas. Conversely, prolonged construction can temporarily depress values and disrupt daily life. Check your local Metropolitan Planning Organization (MPO) for funded projects in your area.
If you're in a rural area: The $65 billion broadband investment through the BEAD (Broadband Equity, Access, and Deployment) program under 47 U.S.C. § 1702 is the largest broadband buildout in U.S. history. If you currently lack reliable high-speed internet, your state has received BEAD allocation funds and should be deploying service within 2-4 years. The $55 billion water infrastructure investment addresses lead pipe replacement and aging water systems — the EPA estimates 9.2 million lead service lines remain nationwide.
If you commute by car or public transit: Infrastructure funding is shaped by the congressional budget process and contributes to the federal debt. The $110 billion in road/bridge funding covers over 45,000 structurally deficient bridges and 170,000 miles of highway in poor condition. The $39 billion transit investment supports bus, rail, and ferry system improvements. These are 5-year programs, so impacts are rolling through 2026-2027.
If you work in construction or engineering: IIJA spending supports an estimated 1.5 million jobs. Davis-Bacon prevailing wage requirements apply to most federally funded projects, meaning wages must meet local prevailing rates — typically 15-30% above non-union baselines. The demand for skilled construction labor has pushed wages up and created labor shortages in many markets.
Implementing Regulations
Infrastructure spending is implemented through multiple agency-specific regulations:
- 23 CFR Parts 625–680 — FHWA Federal-aid highway program (design standards, construction, federal-aid eligibility)
- 49 CFR Part 611 — FTA capital investment grant program (New Starts, Small Starts, Core Capacity)
- 2 CFR Part 200 — Uniform Guidance for federal awards (applies to infrastructure grants)
Pending Legislation
- S 3413 — REPAIR Infrastructure Act: reauthorizes and expands the REPAIR program, adding community-focused selection rules and $3.0B/year from the Highway Trust Fund for 2027–2031. Status: Introduced.
- HR 6671 — REPAIR Infrastructure Act (House companion): reauthorizes REPAIR with $3.0B/year (2027–2031) for community-centered, anti-displacement transportation projects. Status: In Committee.
- S 1733 (Sen. Cramer, R-ND) — Highway Funding Transferability Improvement Act: raises the cap on transferring federal highway aid from 50% to 75%, giving states more flexibility. Status: Introduced.
- S 1066 (Sen. Lummis, R-WY) — Highway Funding Flexibility Act of 2025: redirects unobligated NEVI and EV Charging grant funds to highway, bridge, wildlife-crossing, and truck-parking projects. Status: Introduced.
- HR 502 (Rep. Finstad, R-MN) — Protecting Infrastructure Investments for Rural America Act: refocuses Rural Surface Transportation grants to very small rural towns with higher federal cost-shares. Status: In Committee.
Recent Developments
- IIJA spending past midpoint: The five-year IIJA (2022-2026) is past its midpoint, with over $400 billion announced for specific projects across all 50 states. However, actual disbursement and construction lag behind announcements — many projects are still in permitting, design, or procurement phases. States and localities report difficulty spending funds fast enough due to labor shortages, material costs (exacerbated by tariffs), and environmental review timelines.
- BEAD broadband deployment begins: After a lengthy planning phase, states began issuing BEAD subgrants to internet service providers in late 2024-2025. The program targets universal broadband coverage, prioritizing unserved locations (no service at 25/3 Mbps). Fiber-to-the-home is the preferred technology. Full deployment is expected by 2028-2030, not the original 2026 target.
- EV charging network behind schedule: The $7.5 billion NEVI (National Electric Vehicle Infrastructure) program has deployed fewer chargers than planned, with only a fraction of the 500,000-charger target installed. Permitting delays, utility interconnection timelines, and the "Buy America" domestic content requirements have slowed rollout. S 1066 would redirect unobligated NEVI funds to highway and bridge projects.
- DOGE and infrastructure: The Department of Government Efficiency (DOGE) has flagged some IIJA programs for spending review, though the law's bipartisan passage and state-level economic impact make wholesale cuts politically difficult. Any clawback of unobligated funds would primarily affect programs still in the planning stage.