Many Cities, Towns Plan To Collaborate on IIJA-Funded Projects
You may have heard the line, “Teamwork makes the dream work” often expressed in the business world, almost to the point now of overuse. However, finding partnerships between communities to use infrastructure development funding under the Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58) seems to be a much sought-after concept.
The National League of Cities (NLC) recently released findings from a survey it conducted with Polco in which leaders from 153 cities and towns identified how they would prioritize local infrastructure projects using IIJA (also called the Bipartisan Infrastructure Law) funds. IIJA was signed into law in November 2021, providing $550 billion over five years in new funds for infrastructure investment.
Probably not surprisingly, 82% of local governments said they would invest federal IIJA funding on roads, bridges and major transportation projects. The remaining priorities break down as follows: water (60%); road safety (56%); broadband (36%); resilience (27%); clean energy and power (27%); public transportation (26%); electric vehicles, buses and ferries (26%); environmental remediation (24%); airports (13%); ports and waterways (9%); and passenger and freight rail (7%).
However, a more interesting finding from the survey is that 78% of respondents said they are very likely or somewhat likely to collaborate with neighboring cities or regional authorities to maximize dollars and benefits to their communities. According to NLC, collaborating allows communities to apply for larger and more ambitious projects that benefit residents across a region. “These once-in-a-lifetime investments from the Bipartisan Infrastructure Law allow communities across the country to tackle infrastructure upgrades and badly needed infrastructure projects to improve the lives of residents,” added NLC Chief Executive Officer and Executive Director Clarence E. Anthony.
Local governments receiving IIJA funds must provide a cost share, and the survey found that cities and towns plan to use various methods to match the federal investments. Some 49% of those actively seeking funds said they plan to use American Rescue Plan Act local recovery funds as a funding match, while 36% said they plan to use special reserves; 34% expect to use state funds; and 32% plan to use municipal bonds for their local share.
These funds aim to meet critical needs for local governments. Whether they partner with other communities — to make the dream work — or not, let’s hope those funds are effectively used to address vital infrastructure concerns.
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