KEY POINTS
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The IIJA provided $326 billion for roads and bridges: $273 billion distributed to states by formula and $53 billion in grants for selected projects.
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Congress is likely to preserve core highway funding, but the future of many newer grants and programs for bridges, modernization and resilience remains uncertain.
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If Congress extends highway programs but does not renew extra funds set aside for later years, road and bridge funding could fall 13%, according to The Pew Research Center.
States face uncertainty over federal funding for road repairs, bridge upgrades and resilience projects following the September expiration of the 2021 Infrastructure Investment and Jobs Act (IIJA).
Congress is considering the next federal road and bridge funding law, including how much money to provide states and through which programs.
Lawmakers are likely to preserve core highway funding, but the future of many project grants, especially those for resilience, modernization and bridge upgrades, remains unclear, The Pew Research Center said in a Nov. 3 analysis.
IIJA Expanded Federal Road and Bridge Investment
The 2021 Infrastructure Investment and Jobs Act (IIJA) directed new federal funding to long-standing road and bridge needs, including repair, modernization, safety and protection from extreme weather.
It provided $326 billion for roads and bridges. Most went to states through formula programs, which automatically distribute money using factors such as population and road mileage.
Formula programs provided $273 billion, or 83% of the total, and increased this type of funding by 32% compared with the 2015 Fixing America’s Surface Transportation Act (FAST), according to Pew.
The law also expanded how federal money could reach projects. It provided $53 billion in grants for selected large-scale projects, and local governments could apply directly instead of going through a state. New funding programs addressed needs older programs did not cover well, including bridge repairs and protection against floods and other hazards.
The IIJA provided about $40 billion for bridge construction, preservation and maintenance, roughly 22% more than the FAST Act. It also made federal funds available for state- and locally owned bridges, not just bridges on the National Highway System.
These changes increased bridge funding and allowed more bridges to qualify. Many newer programs, however, relied on one-time funds, and their future depends on the next federal road and bridge funding law.
An April 2026 Congressional Research Service report highlighted the scale of the bridge issue, saying that, "The United States has approximately 624,000 bridges longer than 20 feet on public roads. About 48% of these bridges are owned by state governments and 50% by local governments. The number of bridges classified as poor has declined gradually for many years, but as of June 2025, about 42,000 remain."
Inflation Cut the Amount of Work Federal Highway Dollars Could Buy
Rising highway construction costs meant federal dollars could pay for less work. The Eno Center for Transportation reported that the Federal Highway Administration’s highway construction-cost index rose 50% between December 2020 and the third quarter of 2022.
The Federal Highway Administration’s highway construction-cost index rose 50% between December 2020 and the third quarter of 2022, the Eno Center for Transportation reported. Shown in a chart is the construction cost index for 2017 through 3Q 2026 (preliminary). Image: US Department of Transportation
In a separate analysis, Eno estimated that inflation cut the amount of work federal highway dollars could buy by $21.5 billion from late 2020 through 2022. Eno’s review of rising costs points to supply-chain problems, labor changes, petroleum prices and increased demand for contractors as contributing factors. Eno’s cost index analysis details the cost increase and its effect on federal funds.
ConstructConnect Associate Economist Devin Bell reported Oct. 16 that, "Construction material prices rose 11.0% year over year in September, according to the Bureau of Labor Statistics (BLS). This is the highest year-over-year percentage change in the Producer Price Index (PPI) for construction materials since May 2022."
A bright spot, Bell reported, was that "The Producer Price Index for cement and concrete product manufacturing rose 4.1% year over year in September, well below the 11.0% increase for construction materials overall."
Over the past 12-months through September, however, energy prices increased 20.4%, including a 34.2% increase for gasoline.
Labor changes and contractor demand can delay projects and increase costs. ConstructConnect reported earlier this year that material and labor cost inflation was outpacing bid prices and squeezing margins in the industry.
ConstructConnect economist Bell said that, "In recent months, the gap has begun to close, with construction bid prices rising 5.4% year over year in September, according to the BLS."
Surface Transportation Funding Gap Remains Large
The investment gap remains large. Citing a 2024 report by the American Society of Civil Engineers, Pew said that even if federal funding stayed at IIJA levels through 2033, planned investment would fall $1.2 trillion short of surface transportation needs.
A return to 2019 funding levels would widen the gap to $1.8 trillion and put more pressure on state and local budgets.
Without the IIJA’s higher funding and broader bridge eligibility, states would need to raise new revenue and spend more of their own money to keep many of the nation’s worst-performing bridges safe and functioning, Pew said.
Why a Short-Term Extension Could Mean a 13% Reduction
The IIJA combined regular Highway Trust Fund programs with extra money Congress set aside for transportation in later years. Those extra funds expire after fiscal 2026 (September 30, 2026).
A short-term extension could keep Highway Trust Fund programs running, but it would not automatically renew the additional money. Without new or renewed funds, states could face an immediate 13% reduction in road and bridge funding, Pew said.
The IIJA’s PROTECT program has supported $2.3 billion in such projects. Pew said current federal proposals would eliminate part of the program, potentially reducing dedicated funding to protect transportation infrastructure from extreme weather.
What Construction Contractors and Manufacturers Can Watch
Contractors, manufacturers, and suppliers can watch congressional action on the next road and bridge funding law, especially proposals for grants and funding beyond regular highway programs.
Pew said many newer grants relied on one-time funding, and a short-term extension would not automatically renew the IIJA’s additional funds for future years. Alongside those policy decisions, construction costs and labor availability could affect the timing, scope and volume of roadway work and bid opportunities.
Separately, H.R. 8870, the BUILD America 250 Act, remained pending in the House. The House Transportation and Infrastructure Committee approved it 62-2 on May 22, but Congress.gov’s bill record lists no later action.
The next major surface transportation bill, the five-year BUILD America proposal would authorize federal highway, bridge, transit and rail programs through fiscal 2031 and create or revise grant programs.
If enacted, its funding and eligibility rules could shape which projects states and local agencies advance, with potential implications for contractors’ bid pipelines and manufacturers’ demand for road and bridge materials. The size and timing of any effect depend on further congressional action and the final bill.
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