5 infrastructure developments the industry is watching

May 3, 2023 11:30 AM

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A long-awaited extension and renewal of the Northeast Corridor rail link, a proposed bullet train connecting Portland and Vancouver in the Pacific Northwest, and Infrastructure Investment and Jobs Act funding for a number of large bridge projects around the country are among the latest developments in muni finance.

For more on these stories and other infrastructure news, read our roundup below.

Inside the Hudson Rail Tunnel: Decay, Water and a Power Puzzle

Victor J. Blue/Bloomberg

Full steam ahead for Northeast corridor rail link

The Gateway Project expansion and renovation of the Northeast Corridor rail link between New York, NY and Newark, NJ has at last received a green signal to proceed following a grant of $292 million in federal funds under the Bipartisan Infrastructure Law.

"This is just the beginning of finally constructing a 21st Century rail system that's long overdue in this country," said President Joe Biden. "To have the best economy in the world, you have to have the best infrastructure in the world."

More than a decade after being first mooted, and after nearly being derailed by former New Jersey Gov. Chris Christie and former President Donald Trump, the project will begin with work on a new two-track tunnel under the Hudson River.

Read more:

Gateway project gets first chunk of federal funds; billions more to come

Push for bullet train funding grows in Pacific Northwest

A 300-hundred mile stretch of the Pacific Northwest from Portland to Vancouver via Seattle could be connected by a high-speed rail link in the near future, believe advocates of the project.

Public and private supporters in Oregon, Washington State and British Columbia are collaborating on securing funding and hope to take advantage of federal grants that have become available under the Infrastructure Investment and Jobs Act.

While the proposed bullet train will be costly ($24 - 42 billion according to a 2017-18 feasibility study), the infrastructure upgrade still comes in at less than one of the alternatives — widening Washington's I-5 at a cost of $108 billion.

Read more:

Cascadia bullet train to seek federal infrastructure funds

Boeing CEO Muilenburg And 737 Chief Pilot Testify To House Transportation Committee

Andrew Harrer/Bloomberg

More oversight on spending is a must for T&I chair

Uncovering and eliminating the misuse of funds in the $1.2 trillion Infrastructure Investment and Jobs Act is essential for the new chair of the House Transportation & Infrastructure Committee.

"When you're pushing $1.2 trillion out as fast as it's being pushed out, there's going to be a lot of waste and abuse," said Missouri Rep. Sam Graves as he steps up from ranking Republican on the committee to chair.

Graves will also be looking to take a bipartisan approach to funding reauthorizations for Federal Aviation Administration programs and the next Water Resources Development Act.

Read more:

House transportation chair vows scrutiny of infrastructure funds

$2.1 billion in IIJA money kickstarts four bridge projects

The first tranche of funding for large bridges under the Infrastructure Investment and Jobs Act will boost a number of key projects, from California's Golden Gate Bridge to the Brent Spence Bridge connecting Kentucky with Ohio.

The IIJA's Bridge Investment Program has support across the aisle and will allocate $40 billion in federal grants over five years for large bridge projects.

In addition to the Golden Gate and Brent Spence projects, the initial $2.1 billion in infrastructure grants has been allocated to the Gold Star Memorial Bridge in Connecticut, and to four drawbridges over the Calumet River between Chicago, Illinois and Gary, Indiana.

Read more:

Large bridge projects win billions in federal grants

Increase in infrastructure funding offset by higher costs

Trillions of dollars will bolster infrastructure funding in 2023 due to the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and the CHIPS and Science Act, but ballooning construction costs could hinder progress.

"There are very positive signs that the market is strong right now and we expect it to be strong next year, but overall, the wild card is really project costs," said Alison Premo Black, chief economist for the American Road & Transportation Builders Association.

ARTBA estimates for construction cost increases include a 13% rise for highways, pavements and streets, 14% for bridges and tunnels, 13% for ports and waterways, and 4% for public transit and rail.

Read more:

Infrastructure outlook: Federal aid drives growth, costs pose risk