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HomeBusinessBiden's heavy spending boosts U.S. infrastructure from C- to C grade.

Biden’s heavy spending boosts U.S. infrastructure from C- to C grade.

A report released by the American Society of Civil Engineers on Tuesday gave the United States’ infrastructure a “C” grade. This evaluation, conducted every four years, showed a slight improvement from previous assessments, primarily attributed to investments made during the administration of former President Joe Biden.

The report investigated a variety of infrastructure areas, including roads, dams, drinking water, and railroads. It emphasized the necessity for continued or increased federal funding to prevent deterioration and rising costs. Darren Olson, chair of the report, noted that while recent investments have begun to yield benefits, significant work remains. He highlighted that deteriorating infrastructure adversely affects both individuals and the economy, citing issues ranging from poor roads damaging vehicles to power outages spoiling groceries.

Olson further stressed the importance of infrastructure being capable of withstanding more extreme weather conditions due to climate change, referencing recent hurricanes that severely impacted the East Coast and parts of Appalachia. According to him, the U.S. experienced 27 weather disasters last year, each costing at least $1 billion, marking the second-highest number since 1980.

The 2021 Infrastructure Investment and Jobs Act allocated $550 billion for new infrastructure projects, set to expire in 2026. An additional $30 billion from the 2022 Inflation Reduction Act was directed towards clean energy and climate change projects. Despite these investments, the Trump administration has aimed to reduce some of Biden’s environmental policies. For instance, the improvement of public parks from a D-plus to a C-minus has been partly attributed to substantial investments, although recent moves by the Trump administration to cut National Park Service staffing could undermine these gains.

In 2021, the U.S. infrastructure received an overall grade of C-minus. Since then, investments have only been a small fraction of the estimated $9.1 trillion required to bring the nation’s infrastructure to a satisfactory condition.

Even with consistent federal funding, a $3.7 trillion funding gap is predicted over the next decade. For example, the cost to upgrade and maintain the nation’s approximately 50,000 water utilities is projected at $625 billion over the next 20 years, with the grade for drinking water remaining at C-minus, unchanged from four years prior.

Many communities, already facing challenges with outdated water systems, must also comply with new requirements to replace lead service lines and reduce per- and polyfluoroalkyl substances (PFAS). Scott Berry, director of policy and governmental affairs at the US Water Alliance, acknowledged that although the infrastructure bill facilitated the initiation and completion of numerous projects, significantly more investment is necessary due to a widening gap over previous decades.

The legislation also included funding for the U.S. Army Corps of Engineers to enhance inland waterways, improving their grade from a D-plus to a C-minus. Barges on the Mississippi River, for example, transport vast quantities of coal, soybeans, and corn to global markets. However, essential infrastructure such as locks and dams, built more than 50 years ago, often remain unnoticed and under-maintained, making them susceptible to neglect, according to Mike Steenhoek, executive director of the Soy Transportation Coalition.

Steenhoek noted that when significant projects receive funding, it typically occurs in phases, necessitating pauses until additional funds are available. This practice elevates the costs for materials and labor. He emphasized the need for greater predictability and reliability in funding allocations to enhance the efficiency of taxpayer money.

Clifford Winston, a microeconomist at the Brookings Institution, highlighted the necessity of policy reforms to optimize infrastructure usage and financing. He mentioned the effectiveness of congestion pricing in New York City as it compels frequent drivers to contribute more financially and encourages reduced car usage, potentially decreasing the demand for new infrastructure.

The condition of roads, receiving a D-plus, showed little improvement despite $591 billion in investments since 2021. Meanwhile, the rail and energy categories were downgraded. A train derailment involving hazardous chemicals in East Palestine, Ohio, in 2023 led to rail’s grade declining from a B to a B-minus. The energy sector, pressured by increased demand from data centers and electric vehicles, fell from a C-minus to a D-plus.

Engineers argue that persistent issues in many sectors necessitate immediate action to address deficiencies before systems fail. On Wednesday, a group of engineers will visit Washington to discuss the impact of funding and underscore the importance of ongoing investment with lawmakers. Olson remarked that infrastructure needs are bipartisan, with better infrastructure ultimately saving American families money and promoting economic growth.

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