US cities plan to work together to maximise federal funds

Almost 80 percent of cities in a recent US survey say they are looking to partner regionally to make the most of federal infrastructure funding.

The joint survey from the National League of Cities (NLC) and community survey platform provider Polco indicates how local leaders from 153 cities, towns, and villages in 47 states plan to spend funds from the US$1.2 trillion Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law.

Seventy-eight percent of the respondents actively seeking funds indicated they are very likely or somewhat likely to collaborate with neighbouring cities or regional authorities to maximise dollars and benefits to their communities. Collaborating allows communities to go after larger and more ambitious projects that benefit residents across a region, the NLC said.

Roads and bridges

The findings reveal that 82 percent of municipalities intend to invest in roads, bridges and other major projects, and 60 percent in water. Other priorities include road safety (56 percent), broadband (36 percent) and resilience (27 percent).

Around a quarter plan to use money for clean energy and power (27 percent), public transport (26 percent), electric vehicles (26 percent), and environmental remediation (24 percent).

Further down the list are airports (13 percent), ports and waterways (nine percent) and passenger and freight rail (seven percent).

“These once-in-a-lifetime investments from the Bipartisan Infrastructure Law allow communities across the country to tackle infrastructure upgrades and badly needed infrastructure projects to improve the lives of residents,” said NLC CEO and Executive Director Clarence E. Anthony. “From coast to coast, from the biggest cities to the smallest towns, local governments are leading the way in rebuilding and strengthening our nation’s infrastructure.”

America’s infrastructure scored a C-minus in a 2021 report card from the American Society of Civil Engineers. It found that growing wear and tear on roads has left 43 percent of the nation’s public roadways in poor or mediocre condition and that around 6 billion gallons of treated water is lost each day. The report estimated a US$2.6 trillion investment gap over the next decade to bring US infrastructure into good repair.

ARPA matching

Federal funds from the IIJA, which was passed in November, are cost-shared with the local government granted the award. Local governments plan to use a variety of methods to match these federal investments. Almost half of local governments actively seeking funds indicated that they plan to use American Rescue Plan Act (ARPA) local recovery funds as a funding match.

Local governments also plan to use special reserves (36 percent), state funds (34 percent) and municipal bonds (32 percent) to meet their federal match.