California scores big on federal infrastructure bill

The federal infrastructure bill will provide California with billions of dollars for projects after President Biden signs the $1.2 trillion package.

The state’s 11 Congressional Republicans, who opposed the bill, say it would give billions to California’s high-speed rail project, which Rep. Michelle Steel of Orange County tweeted “is a massive waste of taxpayer money."

Gov. Gavin Newsom praised Congress for passing the bill and said it would help create jobs and modernize California’s transportation system.

“President Biden understands the need to build a climate-resilient future, and the infrastructure package passed by Congress builds on California’s unprecedented investments to maintain and modernize the state,” Newsom said.

California Gov. Gavin Newsom said the federal infrastructure bill would aid the state's efforts to improve its crumbling infrastructure.

The funds expected are as follows:

  • $25.3 billion for federal-aid highway programs;
  • $9.45 billion to improve and expand public transportation;
  • $4.2 billion for bridge replacement and repairs;
  • $3.5 billion to improve access to clean, safe drinking water;
  • $1.5 billion for airport infrastructure development;
  • $384 million to expand the state’s network of electric vehicle chargers;
  • $100 million to expand broadband;
  • $48 million for wildfire prevention; and
  • $40 million to defend against cyberattacks.

Hilltop Securities analyst Tom Kozlik described passage of the bill as ushering in the “golden age of public finance,” in a Nov. 8 report.
The bill “is likely to support municipal credit quality and provide a further boost to the Golden Age of U.S. Public Finance, as we first wrote in March,” wrote Kozlik, Hilltop’s head of municipal research & analytics.

In addition to the $550 billion infusion of new spending, it slightly expands private-activity bond authorization for surface transportation transfer facilities, for broadband in targeted areas and allows carbon capture and direct air capture technology deployment to be eligible for private-activity bond financing, Kozlik wrote.

The infrastructure bill sets aside $66 billion for rail projects, which could benefit California’s troubled high-speed rail project now estimated to cost $100 billion to complete.

Earlier this year, Transportation Secretary Pete Buttigieg said California’s high-speed rail project would have to apply for new federal funding.

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Transportation industry Infrastructure State of California
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