Report: $2.59 trillion needed to improve U.S. infrastructure over next decade
Mar. 4—WASHINGTON — The last four years have delivered "incremental progress" on improving U.S. infrastructure, a new report says, but the country is still paying only about half of what is needed to maintain it.
That leaves a gap of nearly $2.59 trillion over the next 10 years to make up the difference, wrote the non-partisan American Society of Civil Engineers in a report that comes out once in four years.
In Michigan, that's resulted in nearly a quarter of roads in poor condition, prompting drivers to spend nearly $650 every year on average for maintenance and other costs of traveling on crumbling roads. More than 170 dams are considered "high hazard" and around $13 billion is needed to make drinking water safe statewide over the next 20 years, according to new state-level data from the group.
"We risk significant economic losses, higher costs to consumers, businesses and manufacturers — and our quality of life — if we don't act urgently," ASCE Executive Director Tom Smith said in a statement.
Overall, the nation received a "C-" grade from the engineering group, up from a D+ four years ago. The group encouraged "big, bold action from Congress" and continued support from states to make needed improvements.
The report comes as President Joe Biden and members of Congress begin to negotiate a surface transportation funding bill and infrastructure package that Biden has promised will constitute a "historic investment."
The total investment from all levels of government and the private sector should be 3.5% of the U.S. GDP by 2025, the group recommends.
The largest funding gap exists in surface transportation — encompassing roads, railways and other ground-level transportation infrastructure — where an additional $1.2 billion would be needed.
The last five-year surface transportation funding bill will expire at the end of September this year, and leaders in Congress say they plan to have it finished well before the deadline. But while members of both parties agree significant spending will be necessary, there are no concrete proposals yet on how to pay for it.
Borrowing the money, taxes on corporations and wealthy individuals, and user fees like a gas tax or a vehicle-miles-traveled fee have all been floated as possible options. The administration has said it's not likely to pitch a gas tax increase because it would violate the campaign promise not to raise taxes on those earning less than $400,000.
Meanwhile, 37 states have raised their gas tax to fund infrastructure improvements since 2010. The ASCE recommended the federal government follow suit and raise the current federal gas tax of 18.4 cents per gallon by five cents every year over the next five years to fund highway improvements.
The federal gas tax has not increased since 1993. White House officials have questioned whether the gas tax is a sustainable long-term solution as U.S. automakers increasingly pivot to electric vehicles.
Twitter: @rbeggin
