Infrastructure

As cutting the federal budget resonates as a central theme in the Trump administration, the Department of Transportation is getting a boost in appropriation proposals.

The ratings agency changed its outlook on its BBB-minus rating to negative from stable Wednesday.

Congress has not authorized a fresh revenue source for the Highway Trust Fund in three decades.

The bill would create a not-for-profit corporation modeled after California's IBank, but with more flexibility to handle large-scale projects, backers say.

S&P revised the outlook for the Maryland Transportation Authority's outstanding revenue bonds to negative from stable due to the timing of the federal funding needed to rebuild the Francis Scott Key Bridge that was damaged by a cargo freighter in March 2024.

Tariffs imposed by the Trump administration are already affecting port operations as Moody's has revised the U.S. ports sector to a negative outlook reflecting an expected 7%-12% decline in volume.

"Federal grants come with a clear obligation to adhere to federal laws," said Transportation Secretary Sean Duffy.

A mix of pay-as-you-go, bond proceeds and federal grants bolster the infrastructure of Mobile, Alabama, which is getting a new arena, air terminal and bridge.

Fourteen percent of the state bills would create an electric vehicle fee, and Republicans in Congress have floated their own national EV fee to shore up the Highway Trust Fund.

Some congressional Republicans are concerned taxpayers aren't getting a good return on their investment in transit, as lawmakers gear up for work on a new transportation bill.

Airport executives pushed lawmakers for streamlined funding, a boost in the passenger facility charge, and preserving tax-exempt bonds.

Municipal finance professors Justin Marlowe and Martin Luby wrote the paper after fielding dozens of calls about "this otherwise esoteric corner of public finance."

The immediate effect of tariffs is expected to manifest in the country's ports, which was the only sector of infrastructure to earn a "B" grade in the ASCE's Report Card.

Transportation Secretary Sean Duffy said there are about 3,200 announced projects that are awaiting formal grant funding agreements, 950 of which were announced right before President Donald Trump took office.

These institutions will see increased usage if some threats to the market come to fruition.

As muni advocates fight for the preservation of tax exemption, foreign investors are using the ASCE Infrastructure Report Card as evidence that increased privatization of assets is needed to improve the grades.

Only Georgia has a higher state-level infrastructure grade from the ASCE than the the C the U.S. received this week. More in the Southeast are C-minus or lower.

The effects of infrastructure spending and the need for more are coming into focus as the municipal bond community is dealing with a Congressional threat to eliminate the tax-exempt status of munis. 

The American Society of Civil Engineers released its infrastructure report card, which shows that billions spent on infrastructure is having overall positive effects on the condition of the nation's bridges, highways, and ports.

The U.S. Department of Transportation is pressing public transit agencies to beef up their commuter safety protocols or lose federal funding while the recently passed continuing resolution raises appropriation levels for the sector by less than a half percent.