The Infrastructure Investment and Jobs Act (IIJA) was signed into law by President Biden on November 15, 2021, providing funding for certain infrastructure and related projects.
More than $550 billion of the funding is ‘new money’ to be allocated through FY 2026. According to an analysis by the National Association of Counties, eight federal agencies have been awarded funding:
In addition, a variable number of supplemental appropriations to existing federal programs raises the potential spending to $1.2 trillion between now and FY 2026. Most analysts agree that the IIJA is the largest infusion of infrastructure funds since the creation of the interstate highway system in 1956.
According to the Committee for a Responsible Federal Budget, IIJA offsets may range from $200 billion to $547 billion, with most funding from five areas:
A summary of the ‘new money’ in the bill by the National Association of Counties has the following analysis by sector:
IIJA has a ‘Buy America’ preference. Waivers may be available if there are inadequate supplies, or if the costs would rise by more than 25%.
Due to the nature of competitive grants, no state-by-state or county-by-county analysis of funding is available in a manner similar to what was made available for the American Rescue Plan Act. However, it is certain that various state agencies impacted by IIJA will be meeting with municipal officials over the next few months to plan for IIJA funding.
We also do not know the audit impact of the new IIJA programs; however, existing federal programs expanded by the IIJA are subject to single audit.
Be sure to reference our latest overviews of the Infrastructure Bill
This article is provided for general informational purposes only. It is not legal, accounting or other professional advice, as it does not address any individual facts, circumstances or concerns. Before making personal or business related decisions, please consult with appropriate legal, accounting or other qualified professionals.