IIJA Funding Status and Outlook
This article provides insights into the Infrastructure Investment and Jobs Act (IIJA), detailing the funding allocation across various sectors such as energy, waterworks, highways, broadband, and more. It analyzes the economic impact, job creation potential, and future prospects of the IIJA. Additionally, it covers the implementation process, resources available, and the flow of funds into different infrastructure programs.
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Design Finance Officers Group IIJA Funding Status and Outlook Matt Reiffer Vice President, Infrastructure Programs October 4, 2022
Infrastructure Investment & Jobs Act Infrastructure Investment & Jobs Act Energy/Environment/Resiliency, $153B, 18% Waterworks (Clean/Drinking), $55B, 6% Highway & Bridge, $348B, 41% Ports & Waterways, $17B, 2% Broadband, $65B, 8% Highway & Pipeline Safety, $13B, 1% Multi-modal Grants, $19B, 2% Airports/Air Traffic Control, $25B, 3% Transit, $91B, 11% Rail, $66B, 8% 2
Infrastructure Investment & Jobs Act Infrastructure Investment & Jobs Act 3
Infrastructure Investment and Jobs Act Infrastructure Investment and Jobs Act A historic, generational investment in the built environment Boosts both public and private markets ACEC Research Institute analysis What the IIJA Means for Engineering 82,000 new jobs 6% industry growth $62B in A/E wages $75B added to GDP
Infrastructure bill has forecast upside Estimated $132 billion in A/E output over next 5 years, which represents an average 5.6% annual increase in A/E economic activity over forecast period. The bill will support an additional 82,000 jobs in the Engineering & Design Services sector, paying $62 billion in additional wages to industry employees. Source: Bureau of Economic Analysis (BEA), US Census Bureau, Rockport Analytics
IIJA Implementation IIJA Implementation ACEC Resource Page: programs.acec.org/iija-resources/ Bill summaries and fact sheets White House resources Federal agency websites Guidance materials
IIJA Implementation IIJA Implementation Funds starting to flow: Existing formula programs State DOT apportionments Bridge formula funds Airport improvement Water SRFs Existing discretionary grants: RAISE, INFRA Ports
IIJA Implementation IIJA Implementation Slower spend-out on new and large discretionary programs: EV charging stations Broadband deployment Energy programs Passenger rail Federal budget dysfunction, short-term continuing resolutions delayed grants.
IIJA Implementation IIJA Implementation DOT DOT Major Infrastructure Project Notices of Funding Opportunity: $2.9 billion total in combined MEGA, INFRA, Rural Programs $2.4 billion discretionary bridge program
IIJA Implementation IIJA Implementation DOT Other DOT grant opportunities: Safe Streets and Roads for All RR Crossing Elimination Consolidated Rail Infrastructure and Safety Improvements SMART cities Culvert Removal, Replacement, and Restoration (coming) FRA passenger rail (coming) DOT
IIJA Implementation IIJA Implementation Water Water $55 billion for water projects: Reauthorizes Clean Water & Safe Drinking Water SRF programs through FY 26. Appropriates $11.713 billion for each; 49% for grants & forgivable loans.
IIJA Implementation IIJA Implementation Energy Energy $16.2 billion for energy efficiency and renewables loan fund $8.08 billion for electricity grid resilience - $2.5 billion in formula resilience funds recently announced $6.0 billion for nuclear
IIJA Implementation IIJA Implementation Energy $21.5 billion clean energy demos: carbon capture, hydrogen, grid $8 billion for regional clean hydrogen hub Carbon management - $7.5 billion Funding Opportunity Announcements (FOAs) expected soon. Energy
IIJA Implementation IIJA Implementation Key ACEC issues and priorities: Industry workforce Agency capacity Supply chain and cost inflation Buy America Environmental and regulatory reviews Alternative project delivery methods
Inflation Reduction Act Inflation Reduction Act Budget Reconciliation deal: 15% corporate minimum tax Limits deduction for losses from passthroughs Superfund tax Energy tax credits Climate provisions Neighborhood access and equity grants
A/E revenues experience steady growth U.S. A/E Firm Revenues, Q4 2019 Q1 2022 (in millions $) Total A/E revenues reached a new all-time high in Q1 2022 at nearly $104 billion. 120,000 100,000 80,000 This is the 7th straight quarter for growth, after dipping in Q2 2020 due to the pandemic recession. 60,000 40,000 *not seasonally adjusted, based on 6.10.22 release from U.S. Census Bureau 20,000 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Source: U.S. Census Bureau
A/E revenues annual chart U.S. A/E Firm Revenues, 2007-2021 (in millions $) A/E revenues steadily increased from 2013 since flatlining after the Great Recession Pre-pandemic was a peak in 2019 at $350.47B before dipping a little in 2020 due to pandemic 2021 numbers show bounce-back and new peak from 2019 2021 revenues Census estimates to be $383.26B 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 200720082009201020112012201320142015201620172018201920202021 Source: U.S. Census Bureau
Sentiment regarding firms finances and the industry is strong but rapidly weakening for U.S. economy Current Economic Sentiment Net Rating - Trend Condition of the engineering and design services industry Condition of your firm s overall finances Condition of the U.S. Economy +100 +88 +84 +90 +83 +82 +80 +75 +80 +70 +60 +50 +40 +40 +29 +30 +20 +13 +10 0 2021 Q4 2022 Q1 2022 Q2 Source: ACEC Research Institute, Engineering Business Sentiment Survey 2022 Q2
Sentiment in half of the sectors improved relative to last quarter Current Industry Sentiment vs. Last Quarter By Sector
Future sentiment fell in all sectors, although IIJA is keeping many sectors afloat Economic Sentiment 12 Months from Now vs. Last Quarter By Sector Source: ACEC Research Institute, Engineering Business Sentiment Survey 2022 Q2
Questions? Questions? mreiffer@acec.org mreiffer@acec.org 202 202- -682 682- -4308 4308
