President Biden has made it clear infrastructure is a top priority of his administration. The lack of funding has long been a problem for states in getting roads fixed or built.
All construction sectors are wondering, when it comes to infrastructure funding, where the money will go, especially considering the focus of the Biden administration is on clean energy and projects meant to combat the perceived threat of global warming.
Biden is prioritizing green initiatives in his “Build Back Better” infrastructure proposal that calls not for investments in electric car charging stations, zero-emission buses, transit and zero-carbon electricity generation by 2035.
It's likely that it means roadways will have to wait in line as waterways, broadband, and other environment-friendly projects will get initial funding.
Stan Bass, chief growth officer at Vulcan Materials believes the Biden administration has a specific agenda.
"Democrats are trying to reduce money for highways, forcing people to get out of cars and into public transportation," Bass said.
But the Biden Administration says it's confident focusing on green projects will have a beneficial and lasting impact on the economy, and more importantly the environment, for decades.
A main source of funding for resurfacing roads was the gas tax, which was eliminated with no revenue stream to take its place.
According to the Congressional Research Service, congress has transferred roughly $144 billion to the Highway Trust Fund since 2008 to keep it solvent.
In 2020, under the Trump administration, congress provided an additional $13.6 billion in a stopgap spending measure to keep the fund above water, pushing longer-term decisions about the fund’s solvency to this year.
Democrats want an increase to the corporate tax rate to fund infrastructure but some analysts believe that isn't the answer, saying corporate tax increases will eliminate the Highway Trust Fund.
"It won’t give states the visibility to see the money they are going to have to build long term projects," Bass said. "If they don't have visibility to those funds, how will they know what projects to invest in?"
Many states are already trying programs to bring in money for projects, including charging for miles vehicles drive or the roadways they use, namely tolls.
Bass indicated those in the roadway construction industry should keep pressure on Washington to be sure they get a piece of Biden's infrastructure pie.
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