The Bipartisan Infrastructure Law: Momentum Builds for a Much-Needed Infrastructure Overhaul
The United States has long grappled with the challenge of aging and neglected infrastructure, from crumbling roads and bridges to outdated water systems and unreliable public transportation. This chronic underinvestment has taken a toll on our communities, economy, and quality of life. However, the passage of the Bipartisan Infrastructure Law (BIL) in 2021 has sparked renewed hope for a transformative infrastructure overhaul that could deliver meaningful benefits across the nation.
Two years after President Biden signed the BIL into law, the $1.2 trillion in federal funding has begun to flow, with the Biden-Harris administration announcing nearly $400 billion in project funding and over 40,000 specific initiatives across more than 4,500 communities. This momentum signals a promising shift, but as with any major infrastructure program, the true impact will take time to fully materialize.
In this comprehensive article, we’ll explore the current state of the BIL’s implementation, assess the progress made to date, and highlight the key areas where the law’s investments are poised to make a substantial difference in the lives of Americans.
Reversing the Decades-Long Decline in Infrastructure Investment
The decline in U.S. infrastructure investment is well-documented. As shown in Figure 1, the share of state and local budgets devoted to capital investment fell sharply in the 1970s and 1980s, and has continued to drift downward over the following decades. This trend reflects the chronic underinvestment that has left roads, bridges, water systems, and other critical infrastructure in dire need of repair and modernization.
Figure 1: State and Local Capital Investment as a Share of Total Spending
| Year | Capital Investment Share |
|---|---|
| 1970 | 18.5% |
| 1980 | 12.6% |
| 1990 | 10.6% |
| 2000 | 9.7% |
| 2010 | 9.0% |
| 2019 | 8.7% |
| 2020 | 7.9% |
| 2021 | 10.3% |
The COVID-19 pandemic exacerbated this downward trend, as state and local capital investment declined in lockstep with broader economic output. However, since the passage of the BIL in 2021, there are signs of a turnaround, with state and local capital investment rebounding to pre-pandemic levels and reaching its highest share of total spending since 1979.
This two-year increase of 1.6 percentage points in the share of state and local budgets devoted to capital investment is the largest since 1979, suggesting that the BIL’s infusion of federal funds is beginning to catalyze a shift in infrastructure priorities across the country.
Targeting Investment to Where It’s Needed Most
One of the key priorities of the BIL is to direct funding towards the areas and communities that have historically been underserved or neglected when it comes to infrastructure investment. This is a crucial step in addressing the longstanding inequities that have left some regions and populations with crumbling roads, unsafe water, and limited access to reliable public transportation.
The data on BIL funding announcements reveals an encouraging trend: the funding is indeed being targeted towards the states and communities with the greatest infrastructure needs. As shown in Figure 5, states with lower overall infrastructure grades from the American Society of Civil Engineers (ASCE) are receiving more BIL funding per capita than their higher-performing counterparts.
Moreover, the distribution of BIL funding is also more equitable when compared to historical patterns of infrastructure investment. Typically, states with higher household incomes have tended to invest more in infrastructure per capita than lower-income states (as seen in Figure 6). However, the BIL announcements show no significant relationship between funding and household income across states (Figure 7), suggesting a more inclusive and needs-based approach to allocating these critical resources.
One area where this shift is particularly evident is in public transportation investment. Historically, capital spending on public transit has been strikingly low in the United States, amounting to just 0.1% of GDP (Figure 9). In contrast, BIL announcements include more than $34 billion for public transportation, which is more than a year’s worth of all previous federal, state, and local capital spending on transit.
Importantly, these transit investments are being distributed more evenly across states, rather than being concentrated in just a few large, densely populated areas (Figure 10). This means that communities that have traditionally been underserved by public transportation will now have greater access to this vital service, which can unlock economic opportunities and reduce environmental impact.
Unlocking the Potential of the Bipartisan Infrastructure Law
While it is still too early to fully assess the long-term economic benefits of the BIL, the trends observed so far are encouraging. The surge in state and local capital spending, the equitable distribution of funding, and the targeted investments in areas like public transportation all suggest that the law is beginning to deliver on its promise to rebuild America’s infrastructure in a way that promotes economic growth, environmental sustainability, and social inclusion.
As the BIL continues to be implemented across the country, it will be crucial to monitor the progress, identify areas for improvement, and ensure that the funding is making a tangible difference in the lives of all Americans. By staying vigilant and holding policymakers accountable, we can work together to realize the full potential of this landmark legislation and create a more resilient, equitable, and prosperous future for our communities.
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