The month of December always brings a time of reflection on the last year and 2021 was a doozy worth forgetting. When we thought the hard times of 2020 couldn't possibly get worse, 2021 showed us who was boss. We were met with uncertainty, mandates, rising prices on literally everything and political infighting that delayed passage of critical funding to keep construction projects moving.
Still, here we are almost on the other side of another crazy year and we finally have reason to be hopeful for 2022. $1.2 trillion reasons actually.
For the past few years, road building contractors faced funding uncertainty as Congress continually decided to kick the can down the road instead of enacting long-term and sustainable funding for our highway and bridge projects. "Infrastructure Week" became a running joke as promises were made that money was coming for our failing roads. Money we never saw until now.
Passage of the Infrastructure Investment & Jobs Act (IIJA) is historic for many reasons and it's something the industry should be excited about. After years of gridlock in Washington, IIJA represents a model for addressing the nation’s problems in a bipartisan way.
The total cost of the bill is $1.2 trillion with $548 billion in new infrastructure spending. The bill reauthorizes the traditional surface transportation programs for five years, and provides additional funding for highways, bridges, transit, rail, energy, water and broadband. The IIJA also increases our national investment in safe roads and bridges by 55% over the FAST Act’s 2015 baseline. As a result, projections predict that each state will receive more than $1 billion total in Federal Highway Administration funding to repair and improve roads and bridges.
This legislation includes responsible measures to pay for its spending and has been projected to spur significant economic growth. Still not convinced this bill is good for the industry? Hear from industry experts in our annual State of the Industry Report on page 14 of this issue. Leaders from the U.S. Chamber of Commerce, the National Asphalt Pavement Association, the American Road & Transportation Builders Association and more all weigh in on the bright and busy future ahead for the industry.
No the bill isn't perfect, but nothing is. The guarantee of funding to move those projects forward our infrastructure so sorely needs, is something to be excited about.
As this tumultuous year draws to a close, we can look back with pride on 2021 and celebrate the accomplishments we made this past year, despite the challenges we faced. After all, we are a resilient group used to overcoming the challenges we see every single day. We are well poised to make significant strides in the year ahead and I look forward to hearing about your projects and recognizing your success.
Let's get to work.
