NLC Promotes Continuation of Infrastructure Funds
Dollars provided under the Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58) have been critical for local governments striving to build and upgrade their infrastructure. Now, cities and municipalities are urging the federal government to ensure that funding continues to help support these infrastructure projects.
The National League of Cities (NLC) recently marked the four-year anniversary of IIJA by releasing a new report entitled “Rebuilding Together: Examining Federal Funding for Municipal Infrastructure,” which promotes how local communities have benefited from receiving some $12.7 billion in direct and pass-through IIJA funding. By highlighting the promising results stemming from the law, NLC hopes to gain support as Congress prepares reauthorization packages for surface transportation and waste infrastructure programs set to expire in October 2026.
“The upcoming reauthorization serves as an opportunity to continue the investment in America’s infrastructure, and NLC has outlined key government priorities for both transportation and water reauthorization,” according to NLC. “The analysis shows that federal-to-local direct awards remain the most efficient way to ensure municipal governments, particularly large cities, receive funding to address infrastructure needs quickly and completely.”
The report notes that as of June, USAspending.gov reports that some $8.6 billion in federal funding has been directly obligated to more than 1,600 cities. However, obtaining pass-through dollars from the state has varied. For example, NLC said cities and towns obtained “minimal funding” under pass-through state transportation programs, “leaving them at a disadvantage for fixing infrastructure assets." In comparison, state energy and environment offices distributing funding for energy and water projects allocated more than 70% of their funding to municipalities.
“With bipartisan congressional support for the IIJA, infrastructure funding has flown to every corner of the country and will continue to reach more cities, towns and villages over the next year,” NLC explained, adding that “it is imperative that the federal government continue to provide funding directly to municipalities that own and manage portions of the country’s infrastructure.” We fully stand by local governments in their efforts to encourage reauthorization of this funding.
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