Historic $1.2 Trillion Infrastructure Package Addresses More Than Aging American Roads and Bridges
President Biden signed into law Nov. 15, 2021, the Infrastructure Investment and Jobs Act (IIJA), a monumental $1.2 trillion infrastructure package, with $100 billion being allocated to fix the country’s crumbling roads, bridges, and dams, and $65 billion to improve the nation’s broadband, electric grid, and water systems, including the replacement of hazardous lead in pipes that supply drinking water.
According to a recent USA Today article, “The Infrastructure Investment and Jobs Act would direct nearly $550 billion in new spending over five years to modernize roads, bridges and transit systems while expanding high-speed internet systems and the nation's network of electric vehicle charging stations. The remaining $650 billion would come from existing levies, such as the gas tax.”
The article, by Savannah Behrmann, outlines how the money will be spent: $110 billion toward roads, bridges and other projects; $65 billion toward broadband, $66 billion on passenger and freight rail, $55 billion for water infrastructure, $39.2 billion for public transit, $47.2 billion for resiliency purposes, $7.5 billion for electric vehicle infrastructure and $21 billion to address pollution.
So how will Texas fare in the funding distribution? According to the whitehouse.gov fact sheet, one that used a formula funding model, major takeaways are as follows:
There are 818 bridges and over 19,400 miles of Texas highways in poor condition. Since 2011, commute times have increased by 11.4% in Texas and on average, each driver pays $709 per year in costs due to driving on roads in need of repair. Based on formula funding alone, Texas would expect to receive $26.9 billion for federal-aid highway apportioned programs and $537 million for bridge replacement and repairs under the IIJA over five years.
Texas would expect to receive $3.3 billion over five years under IIJA to improve public transportation options across the state.
Texas would expect to receive $408 million over five years to support the expansion of an Electric Vehicle charging network in the state. Texas will also have the opportunity to apply for the $2.5 billion in grant funding dedicated to EV charging in the bill.
Today, 14% of Texas households do not have an internet subscription, and 4% of Texans live in areas where, under the FCC’s benchmark, there is no broadband infrastructure. Under the IIJA, Texas will receive a minimum allocation of $100 million to help provide broadband coverage across the state, including providing access to the at least 1,058,000 Texans who currently lack it.
Under the IIJA, based on the traditional state revolving fund formula, Texas will expect to receive $2.9 billion over five years to improve water infrastructure across the state and ensure that clean, safe drinking water is a right in all communities.
Airports in Texas would receive approximately $1.2 billion for infrastructure development over five years.
What does this all mean and what should we expect? Much of the national agencies will be tasked to implement this new law, such as the Department of Transportation and Energy. But state and local communities will do most of the heavy lifting, as most own, operate, and maintain the infrastructure that relates to IIJA. So, Texas Department of Transportation, for example, will be responsible for designing and building new projects, hiring additional workers, and implement what is considered a rebuilding of America. As more details are worked out on the allocation of funds, what we realize is the intent of this legislation is to make America competitive through strong infrastructure.