In addition to restoring allegedly crumbling highways and transit lines, the 2021 infrastructure bill was supposed to provide tens of billions of dollars for building new infrastructure. Now it appears that inflation will eat away most of the new money provided by the bill, leaving highway and transit agencies with no real increase in funding.
A city in Massachusetts reports that the price of asphalt has increased by 37 percent.
According to Jim Tyman, CEO of the American Association of State Highway and Transportation Officials, inflation in construction costs is “wiping out that increase [in funding] from the federal government that [state officials] were so excited about earlier in the year.” As a result, the increased dollars from the bill “are essentially evaporating.” Continue reading
